Irvine dental laser maker Biolase Technology Inc. is joining the Russell 2000 stock index this week, according to the company.
The Russell 2000 index, part of Northwestern Mutual Life Insurance Co.’s Seattle-based Russell Investments, includes smaller public companies and is used by investment managers and institutional investors as a benchmark.
Biolase, which had a market value of about $170 million last week, makes lasers that are used by dentists and dental surgeons to cut bone and soft tissue in treatments for gum disease and endodontics, or treating problems deep inside teeth.
Being included in the Russell 2000 “will not only likely broaden our shareholder base and market exposure, but we believe it will drive demand for our stock, as index buyers rebalance their portfolios in the weeks ahead,” Chief Executive Federico Pignatelli said.
Biolase could see some stepped up buying of its shares as managers of funds that seek to replicate the Russell 2000 add the company’s stock.
The company has been turning around under Pignatelli, Biolase’s largest shareholder who became chief executive late last year.
Biolase has either been profitable or broke even in its most recent quarters after a string of losses.
In the first quarter, the company had sales of $10.6 million, up 140% from a year earlier. Biolase reported an adjusted profit of $92,000, versus a $4.8 million loss a year earlier.
Biolase’s shares are set to join the Russell 2000 on Friday.
