Post by Mech on Oct 13, 2004 16:24:18 GMT -5
Applied Digital Solutions jumps
Co.'s VeriChip product gets FDA OK for human use
By Michael Baron, CBS.MarketWatch.com
Last Update: 4:16 PM ET Oct. 13, 2004
www.marketwatch.com/news/yhoo/story.asp?guid=%7B5689C024-C7F5-4026-B82E-718DB62DE0F8%7D&siteid=myyahoo&dist=myyahoo
The stock (ADSX: news, chart, profile) leapt $1.45, or 68 percent, to close at $3.57 on heavy volume of nearly 30 million shares. Digital Angel (DOC: news, chart, profile) shares also rallied, advancing 27 percent to $3.45.
The companies described the VeriChip product as a subdermal radio frequency identification microchip designed to link to patient approved healthcare information, and said the clearance follows completion of a de novo application review by the FDA.
The chips contain 16-digit verification numbers that are captured by a proprietary scanner system that links to the healthcare information databases through encrypted Internet access, according to the companies.
About the size of a grain of rice, the microchip is implanted in the triceps area between the elbow and the shoulder of the right arm. Inserting the chip involves a brief, painless procedure using local anesthetic, and once under the skin, the VeriChip is invisible to the naked eye, the companies said.
In early August, Applied Digital reported a loss of $3 million, or 6 cents per share, in the second quarter ended June 30. Revenue jumped 29 percent in the period to $26.3 million.