Mela Catapults on FDA Nod

Mela Sciences, Inc. (MELA) shares spiked 120 percent in early action Friday. The medical device maker announced that a U.S. Food and Drug Administration [FDA] advisory panel voted that the company’s skin cancer detection device MelaFind is safe and effective.

Mela shares, heavily shorted, nodedived earlier in the week on concerns that the panel would reject the co.’s diagnostic device due to concerns about its accuracy in detecting Melanoma, the often deadly skin cancer.

Technically speaking, shares of MELA are currently trading below their 50-day moving average of $6.62 and below their 200-day moving average of $7.33. The stock, whose short interest accounts for approximately 37% of its 24.11M float, touched a new intraday high of $5.85 in early trading. The equity continues to see a huge volume; more than 12.5 million shares have already traded hands compared to a daily average of around 885,000.

MELA has gained nearly 98% so far into the session, but ticker still remains at depressed levels, having fallen more than 71% year-to-date. MELA currently trades at a negative P/E to growth ratio of 0.07.

Shares of MELA are higher on Nasdaq by 93%, currently trading at $4.92. The 52wk trading range for shares of Mela Sciences, Inc. has been between $2.51 and $12.24 per share.

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About Ron Haruni 1068 Articles
Ron Haruni is the Co-Founder & Editor in Chief of Wall Street Pit.

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