Shares of Soliton Inc. (NASDAQ: SOLY) jumped over 50% during the morning trade on Wednesday after the medical device company said in a statement that it would move forward with the pivotal trial of its Rapid Acoustic Pulse (RAP) device for the treatment of cellulite.
The Houston-based firm said the decision was based on the positive data from its proof of concept (POC) clinical trial. In the POC trial, the range of improvement in cellulite severity score was 20% to 47% and the average improvement for all patients was nearly a 30% improvement, the company said.
The pivotal trial is expected to begin within three months. The RAP device had earlier received clearance from the US Food and Drug Administration (FDA) for the purpose of tattoo removal, according to Soliton.
“The market for non-invasive cellulite treatments is about $1 billion in the US, so it is clear that many women who are affected by the condition are interested in finding ways to reduce or eliminate it,” said co-founder Walter Klemp.
In February this year, the company had a Regulation A+ IPO, meaning it raised money from public funding. SOLY shares have almost tripled since then, despite criticisms that the company is driving the stock with regular meaningless updates.