Markets

Why TransEnterix Inc's Stock Is Being Obliterated Today

While this news is definitely extremely disappointing, long-term investors should keep in mind that it doesn't necessarily mean the SurgiBot System will never win the market. In fact, the company has a handful of regulatory options from here.

The most likely path forward is that the company will gather new data on its system and then resubmit another 510(k) once they feel they have enough information to show a substantial equivalence. Another option -- though likely not a good one -- is to submit the device under a full premarket approval application, or PMA, which is typically a much lengthier and more arduous process then a 510(k) submission.

Of course, the downside to any of the company's options is that they will likely consume a considerable amount of time to complete, and even then, there is no guarantee of success.

We already knew TransEnterix' stock was extremely risky , and this news makes the company's future far more difficult to predict. For that reason, I'm content to continue to watch this story unfold from the sidelines and suggest that you do the same.

A secret billion-dollar stock opportunity

The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early, in-the-know investors! To be one of them, just click here .

The article Why TransEnterix Inc's Stock Is Being Obliterated Today originally appeared on Fool.com.

Brian Feroldi has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

TRXC

Other Topics

Stocks

Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More