After the company shared long-term clinical data with investors, the stock of Soliton (NASDAQ: SOLY) , a small-cap medical device maker focused on tattoo removal , dropped about 12% as of 2:55 p.m. EST on Monday.
Soliton shared long-term data today from its 26-week proof-of-concept clinical trial that is testing its technology as a way to remove cellulite from the body.
It had previously shared data from this trial that showed that patients reported an initial improvement on the cellulite severity score (CSS) ranging from 20% to 47%, with the average improvement being 29% after three months.
Management shared six-month data today showing that the CSS average result continued to improve and landed at 31%.
Image source: Getty Images.
The results sound good on the surface, but it is possible that Wall Street wanted to see an even larger improvement and is selling off the stock in response.
Soliton appears to have a big market opportunity with tattoo removal alone, and that could expand significantly if the company can add on a cellulite indication. But it is still ramping up its manufacturing capabilities and doesn't expect to start pulling in revenue until 2020, so there's a lot of work ahead.
The technology looks very interesting, but it will remain a highly speculative investment until it starts to generate meaningful revenue. So I'm content to root for this company's success from the safety of the sidelines and focus my attention on other opportunities.
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