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Biotech / Medical : Vasomedical Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Starlight who wrote (1242)	5/25/2000 4:16:00 PM
From: Fred Levine	Read Replies (1) \| Respond to of 1605

May 25, 2000 Dow Jones Newswires Vasomedical Up 23%;May Be Bounce From Oversold Shrs -CEO Dow Jones Newswires By Tom Locke DENVER -- Vasomedical Inc. (VASO) shares were recently up 22.5%, and Chief Executive D. Michael Deignan said the rise was probably a recognition by investors that the shares were "oversold and it's a good time to get back in." Shares of the Westbury, N.Y., maker of a medical device to treat angina and other heart-related problems were trading at 3 1/16, up 9/16, on volume of 391,800 compared with average daily volume of 3.1 million. The stock has traded down in recent days, experiencing a fairly steady decline from a closing price of 3 31/32 on May 11 to a closing price of 2 1/2 Wednesday. Deignan also noted that the company was about to announce its retention of the Equity Group Inc. of New York City to handle investor relations, and it did so at noon EDT Thursday. However, Deignan did not think that was a factor in Thursday's stock rise. "I think it just got oversold," he said. "I'm happy about that (the stock's Thursday rise), but the value's very low." He added that in general the shares of the company have been trading in sympathy with a slumping Nasdaq and, in particular, biotech shares. Vasomedical hit a 52-week high of 14 3/16 on March 8 and that was because the stock "just exploded" after the release of positive results about Vasomedical's device from the Mayo Clinic, Chief Executive Deignan said. On March 3, Vasomedical issued a press release stating that the Mayo Clinic had reported that 20 of 21 patients using Vasomedical's enhanced external-counterpulsation, or EECP, therapy had experienced positive results, and some had had dramatic positive results. EECP is used for angina - chest pain that often accompanies coronary artery disease - and other heart-related problems. Vasomedical hopes to get regulatory approval for use of the device to treat congestive heart failure within two or three years. EECP works by putting three sets of cuffs, sort of like those used to take blood pressure, on lower parts of the body, and tightening and loosening the cuffs with air pressure so that they send pulses that coordinate with the patient's heart beat. The treatment is taken one hour a day, five days a week for seven weeks. The pulses help move the patient's blood from the lower extremities of the body, and there is a hypothesis that the pulses may improve arterial health or help create new arteries, said Deignan. "This is going to be a dramatic therapy in the coming years," he said. Deignan couldn't pinpoint the reason for the stock-price downturn that followed the Mayo Clinic news-related upsurge. But he did note that not only do the shares tend to move in sympathy with Nasdaq and biotech shares, but they are also heavily influenced by retail investors and day traders. Deignan stressed that the company has been profitable for the last four quarters and has about $13 million in annualized revenue. In March, Vasomedical reported results for the fiscal third quarter ended Feb. 29 that included net income of $250,000 on revenue of $3.2 million, compared with a net loss of $564,000 on revenue of $1.7 million for the year-earlier quarter. Deignan said that after the company's fiscal year ends on May 31, it will apply for National Market System listing on Nasdaq. -Tom Locke; Dow Jones Newswires; 303-293-9294 fred