RTI Surgical spikes after dodging FDA warning

September 13, 2013 by Arezu Sarvestani

RTI Surgical gets some Wall Street love on announcing that a new FDA inspection confirms changes made at its Florida manufacturing facility.

RTI Surgical spikes after dodging FDA warning

Florida-based RTI Surgical (NSDQ:RTIX) announced this week that a new inspection of its manufacturing facility confirmed that the company had taken the appropriate actions to correct issues cited in an FDA warning letter issued last year.

The announcement sent RTIX shares up 12% by around 4 p.m. after the announcement on Wednesday, September 11, when they were trading at $3.93, up from an open price of $3.56.

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In October 2012, when RTI Surgical was still known as RTI Biologics, FDA inspectors cited the company for manufacturing violations at its Alachua, Fla., facility. The cited violations didn't impact patient safety and didn't result in any manufacturing restrictions.

RTI implemented a series of correction actions to "improve the overall environmental monitoring within the facility," landing the agency's approval during a 2-day follow-up inspection, the company said.