Shares of Abiomed Inc. (NSDQ:ABMD, which had been riding high for most of 2011 took a nose dive on Wall Street today, despite the company posting robust top line growth during its first quarter.
ABMD shares were down some 24 percent in late day trading from yesterday’s closing price of $15.24. While stocks have been down across the board in a day of heavy losses on Wall Street, the dropoff for ABMD was much steeper than its peers in the med-tech space.
The sell off is surprising considering the Danvers, Mass.-based cardiac assist device maker turned in another solid quarter of top line growth.
For the three month period ended June 30, 2011 ABMD posted $27.3 million in sales, a 23 percent jump from the $22 million the company posted during the same period last year. The sales jump was good enough for the company to pare its losses to $4.4 million, down from $6 million during the same period last year.
The company’s workhorse Impella cardiac pump made up the bulk of sales, accounting for $22 million during the quarter, with all but $2 million of those sales coming domestically. Abiomed said it filed a formal submission to the Pharmaceuticals and Medical Devices Agency (PMDA) and the Japanese Ministry of Health and Welfare for approval of Impella in Japan.
Wall Street was once very bullish on shares of ABMD, which jumped by 93 percent during the first six months of the year. They have since retreated dramatically, dropping by nearly 38 percent since May 27, when the stock closed at $18.53.