The Allegra Orthopaedics Ltd (ASX: AMT) share price is surging today as investors are fighting to snap up its shares. This comes after the company announced an update on its flagship innovation project, the Sr–HT–Gahnite Spinal Cage Device (Spinal Cage).
During morning trade, the Allegra share price reached as high as 46.5 cents. However, after some profit taking, the company's shares have settled back to 37.5 cents at the time of writing, up 20.9%.
What did Allegra announce today?
Allegra advised that it conducted additional testing on its Spinal Cage, following earlier test results disclosed on 4 December. The additional round involved dynamic torsion and dynamic compression shear tests designed to examine the Spinal Cage's durability.
Torsional tests involve applying a twisting stress to an implant, which measures its ability to withstand twisting motions. Shear tests involve applying a sliding stress to the implant, which measures the ability of the implant's internal layers to resist fracture in any one direction.
The outcome of the assessment saw Allegra's key product pass its tests without any signs of stress fractures or failure. In light of the combination of positive tests achieved, Allegra stated it on track to commence a pilot animal study. The trial will use the new spinal cage design on animals from next month in Australia.
Once completed, the study will follow a much larger animal trial which will seek to meet United States Food and Drug Administration requirements. This is needed to launch the Spinal Cage into the United States market.
What did the CEO say?
Allegra CEO Ms Jenny Swain commented on the achievement:
We are extremely encouraged by the results achieved from the complement of compressive testing. These results validated the enhancements made to the spinal fusion cage design have been effective. We are looking forward to the pilot animal study commencing late January, followed by the progression to a large animal study.
How has the Allegra share price performed?
The Allegra share price has been on tear over the last 12 months, rising 114%. Amid the solid gains, investors have witnessed sharp and sudden spikes, with the Allegra share price reaching a low of 8.7 cents in June, before shooting up to an all-time high of 84 cents the following month. This surge was based on the news that Allegra would acquire Sr-HT-Gahnite patents from the University of Sydney.
