Guidance can be a wonderful thing. Shares of Skyline Medical Inc. (NASDAQ:SKLN) were getting pounded into rubble since hitting $2.50 at the start of November, collapsing to as low as 83 cents yesterday before reversing course with a big jump Wednesday morning as management offered an upbeat outlook for its Streamway System in 2018.
Incidentally, don't get too used to the Skyline brand because the company said last week it is changing its name to Precision Therapeutics, effective tomorrow, February 1. The company's ticker will be changed to AIPT, meant to be reflective of their focus on artificial intelligence in precision medicine and drug discovery.
The U.S. Food and Drug Administration-cleared Streamway System is the first true direct-to-drain fluid disposal system designed specifically for medical applications, such as radiology, endoscopy, urology and cystoscopy procedures.
It connects directly to a facility's plumbing system to automate the collection, measurement and disposal of waste fluids. Effectively, the system removes nearly all staff exposure to blood and other potentially dangerous fluids in the healthcare setting.
After negligible sales in 2017, Skyline management sees increased efforts and negotiations with hospitals and medical clinics in the U.S. starting to pay off.
Based on current sales trends for the system and expectations from discussions, Skyline believes it will sell about 100 Streamline Systems this year, a 10x increase from last year's total.
Skyline CEO Dr. Carl Schwartz said he sees growing momentum with new customers and existing customers that have indicated they plan to place additional orders as Streamway is integrated into hospital's medical waste management best practices.
The forecast only includes domestic sales and does not include any potential sales in Europe and Asisa Pacific.
Shares of SKLN gapped ahead from Tuesday's close at 86 cents to open this morning at 94 cents. Shares ran as high as $1.23, but have edged back eight cents to $1.15 for a gain of 33.7% on the day as the afternoon got underway.
