Medical device filing citing Catheterization and Cardiovascular Interventions paper — Angiodynamics, 2019-10-03
In a regulatory filing submitted to the U.S. Securities and Exchange CommissionU.S. Securities and Exchange Commission
Regulator · Website, AngiodynamicsAngiodynamicsNASDAQ ANGO
Filings SEC · Quote Yahoo cited a paper published in Catheterization and Cardiovascular Interventions as the basis for its claims. The company read the paper in the order it was written and assessed the scope it actually covered. The stock price movement over the following month was compared to past cases of the same type. This is a retrospective judgment written after the results were known. The paper was read only up to the abstract.
The disclosure is written in the press release as follows
When a U.S.-listed company has something to inform its shareholders, the form it files with the Securities and Exchange Commission is called 8-K. The item numbers in the document filed by Angiodynamics on 2019-10-03 were 2.02 Earnings Release · 7.01 Reg FD Disclosure · 8.01 Other Events · 9.01 Financial Statements and Exhibits. In the press release attached to it, the company cited a paper published in Catheterization and Cardiovascular Interventions. If the sentence citing the paper is translated verbatim, it reads as follows.
Catheter Cardiovasc Interv. 2019; 1– 8. https://doi.org/10.1002/ccd.28435 3 Nicolas W. Shammas, Pradeep Chandra, Marianne Brodmann, et al.
What readers should first check is where the company placed the paper in the press release. Next, they should determine whether the paper supports the entire company claim or only a part of it. To answer the latter question, one must read the full paper. This article, which only read the abstract, cannot provide an answer.
The scope of the paper mentioned in the abstract is limited to this.
The paper title is Novel laser‐based catheter for peripheral atherectomy: 6‐month results from the Eximo Medical B‐Laser™ IDE study and it was published in Catheterization and Cardiovascular Interventions on 2019-08-13. The authors are affiliated with Holy Name Medical Center · Saint Louis University · Medical University of Graz · Orlando Clinical Research Center. The summary at the beginning of the paper is called abstract. This article only read up to there. This paragraph was rewritten by a person after filtering a draft written by a machine by numerical comparison, so it is of a different grade than a full reading of the paper.
The six-month results of a single-arm, multi-center trial using a catheter that lasers away atherosclerotic plaque and calcification in patients with peripheral arterial disease whose leg arteries are narrowed. The primary efficacy endpoint was whether the narrowing of the vessel diameter was reduced by more than 20 percent using only this catheter. Cardiovascular death, major amputation, lesion re-intervention, walking ability, and ankle-brachial index were also tracked for six months. Since this was a single-arm trial without a control group, this paper cannot determine superiority compared to existing procedures.
What the abstract does not answer remains in the full paper and appendix. This article, which did not go beyond the abstract, leaves the blanks as they are. Readers should determine which sentence in the abstract corresponds to the cited section cited by the company by comparing the two citations above.
One month later, the stock price was within the middle half of the sample.
The remaining return after subtracting the portion that moves with the overall market is called excess return. The date is written as trading day, counting only the days the stock market is open. In terms of the calendar, 20 trading days are approximately one month. The excess return for the day of the regulatory filing and the following month are listed in the table below.
| Period | Excess return relative to the market | Meaning |
|---|---|---|
| Five trading days before the filing | −1.7% | The extent of movement before the filing |
| On the day of the filing | −15.0% | On the filing day or the first trading day thereafter |
| Accumulated over +1 to +5 trading days | −19.5% | One week |
| Cumulative +1~+20 trading days | −2.5% | One month |
A bundle of past cases of the same type is called a sample. The position counted from the bottom is expressed as a percentile. The one-month excess return of −2.5% in this case is within the bottom 59% of the 142 samples and is within the lower half.
| Sample scale (20 trading days) | Tenth from the bottom | Fourth from the bottom | median | top 25% | top 10% | This case |
|---|---|---|---|---|---|---|
| Excess return | −31.9% | −20.1% | −7.4% | +5.5% | +19.5% | −2.5% |
Half of the sample falls between the two marks in the middle of the table. One checks from the table whether this case is inside or outside. The sample collects cases where U.S. listed companies wrote papers in 8-K over the past ten years. The company itself is excluded from the sample. The numbers written here are past facts, not rules to apply to the next case.
After the regulatory filing, the company issued such documents
After the filing date, the company issued three 8-K filings, listed only by item numbers. In 8-K filings without titles, the item number indicates the type of content. One can determine whether it was an earnings announcement or a contract based on that number. What exactly happened is read in the original text of each link.
- 2019-10-18 8-K Item 5.07 — Results of the Shareholders' Meeting
- 2019-10-22 8-K Items 5.02,7.01,9.01 — Officer·director changes · Reg FD disclosure · Financial statements·attached documents
- 2019-11-20 8-K Item 5.02 — Changes in Directors and Executive Officers
What this article does not answer
This article, based only on the abstract, does not answer what the paper reviewed, how it was done, or what it showed. How often the paper cited by the company was cited afterwards can be checked again using the OpenAlexOpenAlex
Data source · Website citation count. What will be seen next is whether the company's next 8-K again cites the same paper.
Glossary
- 8-K
- A voluntary report submitted to the Securities and Exchange Commission when a U.S. listed company has something to inform shareholders. The type is indicated by item numbers such as earnings, contracts, and executive changes. All events in this article are derived from this document.
- Excess return
- The remainder after subtracting the overall market return from the stock return. It is used to observe the movement of the company itself by removing the portion where the market as a whole rises or falls.
- Trading day
- A date counting only days when the stock market is open. Since weekends and holidays are excluded, 20 trading days correspond to roughly one calendar month.
- Sample and percentile
- A bundle of past cases of the same type is a sample, and the position from the bottom within it is expressed as a percentile. A percentile of 10 means that nine out of ten cases performed better than this case.
- Abstract
- An abstract is placed at the beginning of a paper. The author writes in a few sentences what was done, how it was done, and what results were obtained. Without reading the full text, one cannot know the details or limitations of the methods.