Shares in Chad Therapeutics Jump on FDA Device Approval

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Shares in medical device maker Chad Therapeutics Inc. soared more than 60 percent Wednesday after the Chatsworth company said it received clearance from the FDA to market its proprietary sleep disorder diagnostic system.


Chad’s Dormio Tech division developed the FloChannel system, which is its first product for sleep disorder. There are about 2,800 sleep labs in the United States that could potentially use the system, Chad said in a statement. It expects to begin shipping by September.


“With its patented features and unique capabilities, we believe FloChannel is a significant advance in the diagnosis of obstructive sleep apnea and other sleep disorders, and may become an invaluable tool in attended sleep laboratories,” said Chad’s Chief Executive Earl Yager.


Chad said that the FloChannel device is the only diagnostic device that independently monitors left and right nasal airflow, allowing the system to detect and measure the periodic alternation in nasal airflow resistance between the two nasal cavities.


Shares in Chad surged 61 percent to 37 cents per share in early trading Wednesday.

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