Abbey Healthcare, Trimedyne Stock Prices Go Down in Selloff

Wary investors drove down the price of two Orange County medical companies’ stock Tuesday as they sold shares in response to negative reports.

Harder hit was Abbey Healthcare Group, which lost $1 a share to end the day at $18.50 after PaineWebber analyst Helen O’Donnell downgraded her previous “buy” rating. O’Donnell, who was not available for comment, issued a brief statement, saying she now considers shares of the Costa Mesa health care services company “attractive.” In market parlance, that means O’Donnell thinks Abbey’s stock is a decent bet but not as risk-free as she had once thought.

Shareholders sold 421,700 shares based on her recommendation, and the price dropped 5%.

Shares of Irvine medical laser maker Trimedyne Inc. also tumbled, losing 75 cents to end the day at $7 each. That decline came amid speculation about pending government action on a new surgical laser catheter the company has developed.

The Food and Drug Administration asked Trimedyne for more information and analysis of the clinical study data submitted in an application for the laser product, designed to treat enlargement of the prostate in older men. The FDA has not said when it expects to rule on marketability of the product in the United States.

Trimedyne shares traded as low as $6.125 Tuesday before recovering. The company’s stock price has tumbled almost 60% from a 52-week high of $17.375 on March 8. More than 470,000 shares traded Tuesday, three times the stock’s average daily turnover for the past three months.