Bovie Medical (NYSE:BVX) saw shares plummet this week after it announced it did not extend the sales channel partnership with Hologic (NSDQ:HOLX) for its J-Plasma product, which is set to expire at the end of February.
Bovie Medical’s J-Plasma is a plasma-based cutter and coagulator that uses helium ionization to produce a focused beam of ionized gas over a blade, used for cutting or coagulating during surgeries.
The Clearwater, Fla.-based company originally inked the deal with Hologic in July, and said it could not extend it “as the 2 companies could not come to a mutually acceptable financial arrangement,” according to a press release.
Bovie Medical shares fell 21.5% in trading on Wednesday after the announcement was made, opening at $3.80 and closing at $2.98.
The company provided positive news, saying that a clinical study of its J-Plasma device exploring the benefits of the device for pelvic lymph node dissection was close to finishing enrollment.
As part of the deal, Utica, N.Y.-based ConMed’s PlazXact Ablator will be marketed as the UltrAblator Bipolar series, effective March 2017, according to Bovie Medical.
Last November, Bovie Medical said it closed a $6 million funding round, floating 1.63 million shares of stock at $4 per share.