EnteroMedics Inc. (NASDAQ:ETRM)
EnteroMedics Inc. (NASDAQ:ETRM) has completed the acquisition of BarioSurg, Inc. thereby gaining access to its minimally invasive, medical device, Gastric Vest System. The device is being studied as an offering for people struggling with obesity.
Gastric Vest for Weight Loss
The Gastric Vest wraps around the stomach. By doing so, the device enables gastric volume reduction without changing the user’s anatomy.
“We are excited to both incorporate BarioSurg’s Gastric Vest into our now further differentiated portfolio of medical devices for fighting obesity and related comorbidities, and to explore potential clinical opportunities to combine the Vest and vBloc Therapy,” said EnteroMedics Chief executive officer, Dan Gladney.
The vest has already demonstrated a mean 85% weight loss probability in a pilot study carried outside the U.S. Given the positive results, EnteroMedics Inc. (NASDAQ:ETRM) is now planning to build a strong foundation as it looks to gain regulatory approval for the device. Given that the device has the potential to be a game-changer in the field of bariatrics, approval will mark a major milestone for the company.
EnteroMedics Inc. (NASDAQ:ETRM) is planning to pay 1.38 million unregistered shares for the acquisition of BarioSurg Inc. in addition to 1 million unregistered shares of conditional convertible preferred stock. Shares of common stock issued in the acquisition represent 19.99% of the company’s total outstanding shares. The company is to hold a special meeting of shareholders to approve the conversion of the conditional convertible preferred shares in the summer.
EnteroMedics Inc. (NASDAQ:ETRM) is fresh from completing its first vBloc Neurometabolic therapy implant at the McGuire Veterans Affairs Medical center. The vBloc system is designed to control sensation of hunger using a pacemaker-like device that is usually implanted under the skin. The device gives patients the sensation of fullness helping them control their calorie intake.
Q1 Financial Results
Separately, EnteroMedics Inc. (NASDAQ:ETRM) recently reported financial results for the first three months of the year. Net loss for the quarter came in at $7.4 million representing a loss of $1.27 a share. Sales in the quarter totaled $40,000 with selling, general and administrative expenses coming in at $5.9 million.
Research and development expenses on the other hand totaled $1.1 million. The company exited the quarter with cash and cash equivalent of $18.7 million.
EnteroMedics Inc. (NASDAQ:ETRM) stock was up by 10.68% in Tuesday’s trading session, ending the day at $5.08 a share.
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.
About the author: James Marion is a University of Houston student studying Business with a concentration in Finance.