Why Intuitive Surgical Investors Were Feeling the Pain Today
Intuitive Surgical (NASDAQ: ISRG) was the subject of some encouraging news delivered on Thursday, but investors still traded out of the stock. Shares of the robotic surgical-equipment maker fell by 2%, more than double the 0.8% decline of the S&P 500 index.
That morning, Intuitive's business partner Luna Innovations (NASDAQ: LUNA) announced the two companies had signed a new supply contract. Luna, a developer of fiber-optic based technology, will provide photonic subsystems to Intuitive to be used in the latter's robotic surgical solutions. All told, the contract is worth $14.2 million. It wasn't clear how long it will be in force.
In the announcement, Luna waxed enthusiastic about the deal and the business of its partner. "We are excited to expand our relationship with Intuitive Surgical and support its visionary leadership in improving human health and surgical outcomes," the company's CEO Scott Graeff was quoted as saying. "Luna is honored to help advance this leadership by supplying critical technologies over the years to come."
Source Fool.com
