Shares of Establishment Labs Holdings Inc. ESTA, -12.80% tumbled 21.7% toward a 21-month low in premarket trading Wednesday, after short-seller Hindenburg Research took aim at the silicone breast implant company. Hindenburg alleged that it found most safety studies of the company’s products have “conflicts of interest,” and that many patient testimonials and multiple lawsuits dispute the company’s claims of safety and satisfaction. Hindenburg also said the RFID chips embedded in the company’s implants were originally intended for pets, and were “improperly marketed” for medical use. In addition, Hindenburg said it also identified “financial risks,” as it claims import/export records show the company ships products to entities formerly owned by Chief Executive Juan José Chacón-Quirós. Establishment Labs did not immediately respond to a request for comment. The stock, which is on track to open at the lowest price seen during regular-session hours since January 2021, has declined 16.6% year to date through Tuesday, while the S&P 500 SPX, -1.26% has dropped 22.0%.
