Vivos Therapeutics Inc. (NASDAQ: VVOS) is a medical technology company that develops innovative treatment and diagnostic methods. It focuses on technology alleviating sleep and breathing complications from dentofacial abnormalities, including snoring and sleep apnea in adults. The company’s stock shot up by over 830% after receiving FDA approval for one of its medical devices.
FDA Approval
Vivos announced on Wednesday, November 29, 2023, that it had cleared Vivo Therapeutics’ device to alleviate obstructive sleep apnea. It is the first time that the FDA has cleared an oral device. The regulator also cleared an exercise regime developed by the company for training facial muscles and the tongue to treat severe obstructive sleep apnea in adults.
Vivos developed its devices as an alternative to those created by leading companies like ResMed and Philips. These devices send pressurized air into a patient’s mouth and nose while sleeping. It sometimes entails surgical implants which send signals directly into the brain.
The FDA approved the device after data from a study showed that over 50% of 73 patients with several obstructive sleep apnea showed improvements. According to Vivo, its appliance gradually repositions soft and hard tissues along the airways, optimizing airflow and function.
The latest FDA clearance comes eleven months after it approved another device from Vivos for treating mild obstructive sleep apnea.
Vivos Therapeutics Stock Performance
Vivos (VVOS) stock nearly doubled in price to $41.00 per share following the FDA approval, an increase of 833.94%. Year to date, the stock is up 121.62%. However, the stock is already down -28.90% in pre-marketing trading at $29.15 per share.
According to its Q3 2023 earnings report, Vivos had a revenue of $3.3 million in the quarter, compared to the $4.2 million reported the previous year, representing a 22.26% decline.
For the quarter, net income was at -$2.09 million, a 61.48% improvement year-on-year. That was due to the company’s ongoing cost-cutting measures. Its EPS for the quarter was $-1.75.
In its outlook section, the company says it plans to become cash flow positive by the end of 2024.
Vivos Therapeutics Stock Forecast
Vivos Stock (VVOS) has a strong buy rating. According to 1 stock analyst, Vivos’ price target is $62.50, a 52.44% upside on the current price.
Should you Buy Vivos Stock?
Vivos (VVOS) has traditionally been quite volatile. For instance, in April 2021, the stock price was $ 238.75. By early August 2021, the price had dropped to $ 71 per share. Its most recent spike was in January of this year when the price went from $10.05 at the end of December 2022 to $43.75 in early January 2023.
Its latest 833% rise has already seen a 30.49% drop in pre-marketing trading, with each share now valued at $28.50. However, the latest FDA approval could help turn things around for the stock. If it achieves profitability in 2024, that could boost its stock price.
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