August 12, 2012–Given Imaging Ltd. (GIVN)’s worst weekly slump in a year was overdone as the Israeli maker of pill-sized cameras for diagnosing digestive ailments isn’t looking to replace colonoscopies, Maxim Group LLC said.
Shares of the Yokneam, Israel-based company tumbled 9.3 percent to $13.60 last week in New York, the most since August 2011. The Bloomberg Israel-US 25 Index (ISRA25BN) of the largest Israeli companies trading in the U.S. was little changed at 85.15 on Aug. 10, posting a weekly advance of 1.4 percent. EZchip Semiconductor Ltd. (EZCH) tumbled 20 percent last week after the revenue forecast from the maker of processors trailed analysts’ estimates. Given gained 1.1 percent in Tel Aviv today, while EZchip lost 2 percent.
Given tumbled 9.9 percent on Aug. 8 after saying it won’t submit its PillCam Colon 2 for general screening approval to the U.S. Food and Drug Administration following the completion of an 885-patient clinical trial. The company will submit the device for visualizing the colon in patients who are unable to undergo or complete colonoscopies, it said. The decision won’t reduce Given’s long-term revenue (GIVN) target, Maxim Group and Cantor Fitzgerald LP said.
“The stock is oversold as a lot of people don’t understand the entire story,” Bryan Brokmeier, an analyst at Maxim Group, said by phone from New York on Aug. 10. “They were going to have a number of hurdles to use the PillCam as a general screening tool and were anyway going to capture a share of the market in which they are focusing now.”…Read More>>