SANTA ANA — Tokos Medical Corp.'s stock is up sharply after a University of Mississippi study endorsing the use of the company's home uterine monitors to delay premature births.
Shares were up $1.125 to $8.125 on Wednesday in active trading on the NASDAQ system, after gaining 19% the day before.
The study followed 17,186 pregnant women, who were at high risk of delivering prematurely, over a period of five years.
It found that the combination of uterine monitors and "aggressive" use of obstetrical drugs allowed 76% of the high-risk women to carry their pregnancies to term. Tokos' uterine monitors are designed to detect contractions in pregnant women before they are felt.
Results from the study were presented Tuesday at the annual meeting of the American College of Obstetricians and Gynecologists in Washington.
The study probably contributed to the stock price increase, said Vicki Grant, a Tokos spokeswoman. She added that short sellers were probably also getting nervous about the increase and moved to cover their positions by buying more stock. Short sellers are investors who borrow shares expecting the price to fall so they can buy replacement shares at a cheaper price.