Myomo Inc (NYSEAMERICAN: MYO) is making waves in the market today, and for good reason. The company announced an international technology licensing program, exciting investors and scaring the sorts out of their positions.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
MYO Stock Gains Big On Licensing Program
In a press release issued early this morning, announced that it has launched a business development program to bring its proprietary MyoPro orthotic product line to a larger number of countries around the world.
In the release, MYO said that it will pursue technology licensing arrangements with international partners that can manufacture and distribute the MyoPro products to rehabilitation hospitals and patients within their home markets.
In order to support licensed partners, Myomo said that it will provide technical expertise to quickly set up local assembly and fabrication of custom devices. The company will also help partners with clinical studies and regulatory approvals and establish an in-country Myomo Academy to train clinicians. Finally, the company intends on providing its MyoPro Control System through a multi-year sales agreement with the distribution partner.
In a statement, Paul R. Gudonis, CEO at MYO, had the following to offer:
We have been approached by companies with expertise in robotics, medical technology, or rehabilitation services from a number of countries, including Japan, South Korea, China, India, and several in the Mideast. While we are directly expanding our distribution networks in the U.S. and Europe, developing licensing partnerships with firms in other international markets is designed to enable us to provide our MyoPro products to a larger patient population by leveraging the existing market positions and investments that would be made by local firms that wish to capitalize on this large market opportunity.
This News Is Big For Two Reasons
The news released by Myomo today is massive, for two reasons. First and foremost, the international distribution has the potential to greatly expand revenue. Moreover, the company did what investors were looking for, provided a company update.
This year has been a painful one for Myomo as the company continues to be a target for short sellers. However, the good news today began a reversal, or at the very least, triggered a short squeeze.
After all, when the news hit, MYO stock started to head up, leading to losses for short sellers. So, when these shorts are forced to cover, we see a short squeeze like what we’re seeing today, only pushing the stock higher.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
Don’t Be The Next To Miss The News
Join our free mailing list to receive real-time news alerts!