Why Abbott Laboratories Stock Leaped by Almost 4% on Thursday

Abbott Laboratories (ABT 4.02%) stock was in fine health on the second-to-last trading day of the week, thanks to news from Europe. Investors greeted this positively, rewarding the company with a share price gain on the day that approached 4%. This was more than good enough to top the S&P 500 index, which closed Thursday 0.3% lower.

A new mark in Europe

That morning, Abbott announced that it earned a CE mark in Europe for its Volt PFA System, a product used to treat people with atrial fibrillation (a common heart disorder). PFA stands for pulsed field ablation, which basically means that the system utilizes high-energy electrical pulses to target and treat tissues in the organ that might be contributing to problems.

The CE mark is an affirmation by a product’s manufacturer that it conforms with a range of standards covering aspects such as health and safety. It is required for goods sold throughout the European Economic Area, which covers most of that continent.

In its press release touting the development, Abbott wrote that roughly 8 million people in Europe over the age of 65 are coping with atrial fibrillation, and that figure is anticipated to double within three decades.

A new(ish) product for a new market

Abbott clearly believes that Volt PFA is a very competitive product, and investors seem to agree.

In the press release, the healthcare company quoted the chief medical officer of its electrophysiology unit Christopher Piorkowski as saying that while PFA is a comparatively new therapy, “We’ve incorporated lessons learned from first-generation devices and designed the Volt system to simplify PFA procedures while making them more efficient.”