TransMedics Group is facing significant pressure after Scorpion Capital released a scathing short report on January 10th. The report accuses the transplant-therapy company of engaging in healthcare fraud and indicates plans to petition the FDA to suspend approval for its Organ Care System. These allegations have raised serious concerns among investors and analysts, leading to a reevaluation of the company's stock. The report has prompted analysts to adjust their price targets and ratings, reflecting heightened worries about potential regulatory and ethical issues surrounding TransMedics.
The impact of the short report is evident in the market's reaction, with TransMedics Group's stock plummeting 13.15% to $63.01 as of 10:51 am on January 10th, down from its previous close of $72.55.