Medigus Ltd. (TASE:MDGS), which has developed the SRS endoscope for the non-drug treatment of Gastro Esophageal Reflex Disease (GERD) could be a beneficiary of yesterday's warning by the US Food and Drug Administration (FDA) that use of over-the-counter proton pump inhibitors is liable to increase the risk of fractures of the hip, wrist, and spine.
Medigus's share price rose 10.1% by mid-afternoon today to NIS 1.65, giving a market cap of NIS 122 million.
Proton pump inhibitors reduce the amount of acid in the stomach. The FDA has issued new safety information on their use to healthcare professionals and patients. The information is based on an FDA review of several epidemiological studies that found those at greatest risk for these fractures received high doses of proton pump inhibitors or used them for one year or more. The risk of fractures is especially higher in people over 50.
Medigus believes that the FDA announcement could have an important long-term affect on treatment for GERD. The company estimates that 5-7% of the global population suffers from GERD, or up to 500 million people. It cautioned, however, that it cannot assess how the FDA announcement will affect use of proton pump inhibitors or the effect on alternative treatment of GERD.
Published by Globes [online], Israel business news - www.globes-online.com - on May 27, 2010
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