Shares of Butterfly Network (NYSE: BFLY) closed 26.9% higher on Sept. 4 after the company announced the commercial launch of its third-generation handheld point-of-care ultrasound system, Butterfly iQ3, in Europe. Investors are likely upbeat about the news due to the strong uptake of Butterfly iQ3 in the U.S. market following its February launch.
Butterfly iQ3 received EU MDR certification in March and is fully compliant with the Restriction of Hazardous Substances Directive. The device will currently be available in all European countries and the United Kingdom. It was launched in Canada during the second quarter. The company is now applying for regulatory approval for iQ3 in additional regions.
The Butterfly iQ3 is the company's most advanced portable ultrasound device in its portfolio which includes the second-generation iQ+ device. The Butterfly iQ3 uses BFLY's most advanced P4.3 chip that has double the processing power compared to iQ+ for best-in-class image quality, new advanced 3D imaging tools for easier use and a smaller, more ergonomic design. Moreover, the higher selling price of the device compared to iQ+ should accelerate the revenue growth rate.
BFLY's shares have gained 39.9% so far this year, significantly outperforming the industry's decline of 13.5% on the back of the rising adoption of Butterfly iQ3 in the U.S. market. The S&P 500 Index has gained 15.9% in the same period.
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