ArthroCare's Quiet Stock Ride

ArthroCare's stock is soaring. Following a series of favorable announcements by the company, its price has risen steadily over the past several months, reaching a high of $72.50 on October 29. Arthrocare's most important announcement concerned the settlement of its patent litigation with Johnson & Johnson.

Three years ago, Sunnyvale, CA-based ArthroCare Corp. 's stock price was languishing at around $6. Given what they believed was promising technology, company investors publicly argued that the stock was worth closer to $35 a share. But as Wall Street soured on device opportunities over the next two years, only the most optimistic investors believed ArthroCare would achieve its goal anytime soon. (See "ArthroCare's Magic Wand,"IN VIVO, January 1998.)

But ArthroCare's stock is soaring, and even $35 now seems like a memory. Following a series of favorable announcements by...

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