MediGus MDGS Stock News

After announcing that it has received its first substantial order, MediGus Ltd. (NASDAQ: MDGS) is making a run for the top in the market today. Early on in the session, the stock is trading on gains of 17.26%. Here’s what’s going on:

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MDGS Stock Soars On Substantial Order

The news was first issued in a press release early this morning. In the release, MediGus announced that as the result of a development agreement with A.M. Surgical, Inc., the company received an order for 1,400 units of its integrated visualization device.

The device is being developed under the terms of the forementioned agreement. MDGS said that the order in question came as a result of the company achieving a key milestone.

Under the terms of the agreement, the company was charged with the development and manufacture of an integrated visualization device. The device was to be based on the company’s micro ScoutCam technology and was designed to work with Stratos, A.M.’s surgical product for edoscopic procedures.

As a result of the milestone achievement, MDGS said that it is moving on to the next milestone. This milestone includes the production of the first two batches of the integrated visualization device.

The production of the 1,400 units of the device will generate a milestone payment in the amount of $650,000. In a statement, Liron Carmel, CEO at Medigus, had the following to offer:

We are pleased with the progress we have made so far in our development partnership with A.M. Surgical. We are confident that the integration of our micro ScoutCamâ„¢ technology with the Stratos could provide surgeons with a powerful device to help their patients live with less pain.

This Is Big News

At the end of the day, the news issued today is big news for MDGS and its investors. After all, the company has a market cap that is sub $10 million. Considering that, today’s announcement means that the company will receive a payment that represents well over 5% of its market cap.

Moreover, this is just the first step along the path of commercialization. While the order was significant, it likely pales in comparison to the significance of the value that the product will produce down the line.

All in all, those interested in MDGS stock have plenty to look forward to ahead.

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