After the markets closed on December 15, 2020, Penumbra, Inc. (NYSE: PEN) stunned the market when it announced that it was voluntarily recalling all configurations of its Jet® 7 Reperfusion Catheter with Xtra Flex technology. The Company stated that the catheter “may become susceptible to distal tip damage during use,” which could lead to “patient injury or death.” On this news, shares are down approximately 7% in aftermarket trading.
This recall comes on the heels of a November 10, 2020 research report released by Quintessential Capital Management (“QCM”) entitled “Penumbra and its ‘Killer Catheter’: A tale of corporate greed and seemingly blatant disregard for patients’ lives[.]” QCM stated that it received “expert opinions from multiple surgeons and former senior FDA personnel,” leaving QCM “confident that Penumbra’s flagship device may be on the verge of a class 1 recall by the FDA.”
Then on December 8, 2020,QCM released another research report entitled “Is Penumbra’s core scientific research authored by a fake person?: The incredible story of Penumbra’s Dr. Antik Bose[.]” In this second report, QCM alleged that some of the Company’s research papers appeared to have been incorrectly attributed to, or perhaps even authored by, a fake individual.
PEN shares are trading at approximately $176.00 each, down from the November 10, 2020 closing price of over $261.00 per share. This represents billions of dollars in lost market capitalization.