Outset Medical (Nasdaq: OM) + announced that it received a warning letter from the FDA listing observations related to its Tablo system.
San Jose, California-based Outset previously disclosed an FDA form-483 on its annual report in February. That FDA form identified four inspectional observations resulting from an inspection concluded on Feb. 10, 2023. From there, Outset provided a response plan on March 3 and completed remediation workstreams to address the observations.
A new warning, dated July 5, raises two additional observations. Outset issued a press release outlining the new warning on July 7. As the markets opened today (July 10), shares of OM fell 14% at $17.60 apiece.
First, the FDA asserts that certain materials it reviewed (found on Outset’s website) promote continuous renal replacement therapy (CRRT). That modality falls outside the current indications for the Tablo hemodialysis system. Outse…