Helius Medical stock rallies 40%: explore why

Helius Medical Technologies Inc (NASDAQ: HSDT) is up close to 40% in premarket on Wednesday after teaming up with Lovell Government Services.

Why is it good news for Helius Medical stock?

The neurotech firm based out of Pennsylvania, United States expects the partnership to help make its PoNS device “available to federal healthcare systems”.

Portable Neuromodulation Stimulator is used in the U.S. as a treatment (short-term) of “gait deficit in adults with mild-to-moderate symptoms from MS”, as per the company’s press release on Wednesday.

The news arrives just days after $HSDT said on the earnings call that it will push for FDA (Food & Drug Administration) approval for stroke treatment as well.

Helius Medical stock has now returned (almost) to the price at which it started the year 2024.

$HSDT took a big hit to revenue in Q4

Dane Andreeff – the chief executive of Helius Medical Technologies is excited to partner with Lovell in pursuit of expanding the reach of PoNS, as per the press release that also reads:

Last week, $HSDT said its total revenue was cut by more than half on a year-over-year basis in the fiscal fourth quarter. The Nasdaq-listed firm attributed much of it the PTAP programme that expired in mid-2023.

Wall Street currently has a consensus “buy” rating on Helius Medical shares which do not pay a dividend yield at writing.