Northstar Loss Widens

Shares of medical-device maker Northstar Neuroscience(NSTR Quote) plunged Wednesday after the company reported a wider year-over-year loss.

The company lost $5.4 million in third quarter compared with a loss of $3.6 million a year ago. Per share, the company lost 21 cents, in line with the year-ago period and a penny narrower that analysts expected. The company didn't report any revenue.

Shares fell 13.2% to $13.04.

Research and development expenses were $5.4 million in the quarter, up from $3 million a year ago, primarily because of better-than-expected enrollment in a clinical trial, dubbed Everest, involving stroke patients. As of the end of the third quarter, 97 patients were chosen for the trial.

Selling, general and administrative expenses were $1.6 million, up from $740,000 a year ago.

"As we shared in our clinical milestone discussion in October, we made good progress across our clinical studies during the third quarter," said Dr. Alan Levy, Northstar's president and CEO, citing strong Everest enrollment, continued participation in a tinnitus study and the launch of an early study on treatment-resistant depression.