Shares of TranS1 Inc., a medical device company engaged in the designing, development and marketing of products that implement its minimally invasive surgical approach to treat degenerative disc disease, are down more than 40% this week.
The huge sell-off in TranS1 shares was sparked after the company announced on Monday that it received a subpoena from the U.S. Department of Health and Human Services (HHS). In a regulatory filing, TranS1 said that HHS is seeking documents from January 1, 2011, through October 6, 2011.
Although TranS1 claims that HHS has made no claims against it, the news triggered a huge sell-off in the company’s shares on Tuesday. On Tuesday Trans1 shares fell 40.71%.
TranS1 shares are expected to remain in pressure. Even before the news of the subpoena from the HHS, TranS1 shares performed poorly, falling more than 15% between September 19 and October 17.
Earlier today, TranS1 announced that it will release its third-quarter financial results on November 1, 2011.
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