Two fast-growing medical manufacturers, also among Minnesota’s best stocks to own since 2017, surged this week after reporting better-than-expected earnings and upbeat outlooks.
Intricon, developer and manufacture of tiny, body-warn devices, including a low-cost hearing aid system, surged from $24 per share Monday to a record $29.40 close Wednesday on heavy trading volume.
Intricon, a long-time public company, has gotten traction with a bold strategy to take on big hearing aid competitors under veteran CEO Mark Gorder. It turned a better-than-expected profit in the first quarter, fat profit margins and quarterly revenue that was up 20 percent to $25.4 million.
Key partners have invested millions to help Intricon add space and equipment at its Arden Hills facilities.
Gorder is trying to disrupt the high-cost hearing aid business with a low-cost technology that works for more than 80 percent of weak-hearing clients.
The stock has run since 2017 from $7 per share to nearly $30; or a $200 million market value.
Tactile Systems of northeast Minneapolis, which went public last year at $10 per share, moved up sharply this week, to a $44.86 per share close on Wednesday; a value of more than $800 million.
Tactile on Monday reported a much smaller loss than expected in the first quarter on year-over-year revenue that increased 35 percent to $26.8 million.
Last September, the Food and Drug Administration cleared Tactile to use its Flexitouch at-home treatment for lymphedema swelling in the head and neck, as well as for swollen limbs, from the excess fluid buildup that often results from cancer treatment. Flexitouch has been recognized by independent analysts as an economical way to treat lymphedema with a system that costs about $5,000 instead of repeated clinic visits and open-ended hospital stays.
CEO Gerry Mattys of 13-year-old Tactile said: “Our Flexitouch sales growth during the quarter continued to benefit from the expansion of our sales team…efforts to target high-volume accounts and our expansion of in-network coverage with commercial insurers. In addition, we saw strong growth in sales to the Veterans Administration hospital system.”