EnteroMedics (NASDAQ: ETRM) shares climbed up 25% on the open this morning on positive news that the McGuire Veterans Center in Richmond, VA successfully completed its first implant of ETRM’s vBloc® Neurometabolic Therapy.
ETRM has been experiencing higher than average volume this week after releasing Q117 earnings on May 16th. Highlights from their Q1 results include:
- Sales of $40,000 with gross profits totaling $11,000
- Selling, general and administrative expenses for the quarter were $5.9 million and research and development expenses were $1.1 million
- Net loss of $7.4 million, or $1.27 per share
- On March 31, 2017, the Company’s cash, cash equivalents and short-term investments totaled$18.7 million
The stock price was down almost 31% when it opened after earnings were released, but recovered a bit at the open until fading the rest of the day.
ETRM has been on a wild ride since the beginning of the year when the company announced a 1-for-70 reverse stock split in an effort to regain compliance with the minimum $1.00 bid price for listing on the NASDAQ Capital Market.
The split saw a surge of buying, and the stock has been on a steady decline until starting to curl up at the end of April.
It appears investors may be disappointed with Q1 earnings, but the recent news about the successful implementation could help investor confidence as ETRM brings its therapy to market.
The stock has crossed its 50 Day moving average twice already this week and could be gearing up for more.
ETRM is the developer of vBloc® neurometabolic therapy, a first-in-class weight loss treatment for obesity and obesity-related risk factors such as high blood pressure or high cholesterol levels.
vBloc® therapy is a non-anatomy altering or restricting, reversible therapy that allows patients to safely lose weight by helping patients:
- Feel less hungry,
- Reduce the amount of food eaten at a meal,
- Feel full longer in between meals.
Recent Company Milestones
ETRM has been focused on bringing its vBloc® therapy to market as well as ensuring it has enough capital to fund its operations:
- May 2017 – Announces first vBloc® therapy implant at McGuire Veterans Affairs Medical Center (see news release)
- February 2017 – Announces publication of three-year data from vBloc® diabetic patient study (see news release)
- January 2017 – Closes $19 million underwritten public offering (see news release)
ETRM is led by a seasoned management team with experience leading medical device companies to successful acquisitions.
Dan W. Gladney
President, CEO, and Chairman of the Board
Mr. Gladney joined ETRM in November of 2015 as President, CEO and Director. He was most recently a Director and Chief Executive Officer of Lanx, Inc., a medical device company focused on developing and commercializing innovative devices for spinal surgery, which was acquired by Biomet, Inc. in 2013.
Scott A. Shikora, M.D.
Consulting Medical Director
Scott A. Shikora, M.D. has served as ETRM’s Consulting Medical Director since June 2015. Dr. Shikora has over 20 years of experience in the field of obesity. Currently, he is an Associate Professor of Surgery at Harvard Medical School and the Director of the Center for Metabolic and Bariatric Surgery at Brigham and Women’s Hospital in Boston.
Chief Financial Officer and Chief Compliance Officer
Scott Youngstrom joined ETRM as their Chief Financial Officer and Chief Compliance Officer in October 2016. Mr. Youngstrom has over 25 years of strategic financial and operational experience in a variety of medical device companies, most recently having served as Chief Financial Officer and Vice President, Finance at Galil Medical, a leading developer of cryotherapy technology.
Nick A. Ansari
Senior Vice President of Sales
Nick A. Ansari joined ETRM as their Senior Vice President of Sales in January 2016. Mr. Ansari has over 20 years of experience in the medical device industry, having held various senior sales positions at Stryker Corporation, DePuy, Medtronic, Inc., Lanx, Inc. and Globus Medical Inc.
Peter M. Delange
Senior Vice President of Operations and Business Development
Peter M. Delange has served as ETRM’s Senior Vice President of Operations and Business Development since January 2016. Mr. Delange spent the last 11 years as the owner and President of Devicex, LLC a medical device engineering development company that was sold in 2015.
Paul F. Hickey
Senior Vice President of Marketing and Reimbursement
Paul F. Hickey joined ETRM as their Senior Vice President of Marketing and Reimbursement in January 2016. Mr. Hickey has over 15 years of experience as a medical device executive, most recently having served as Chief Executive Officer of Pantheon Spinal, a small spine implant start-up company based in Austin, Texas, since 2014.
Katherine Tweden, Ph.D.
Vice President, Clinical and Regulatory
Katherine S. Tweden, Ph.D., has served as ETRM’s Vice President of Clinical and Regulatory since May 2011. Previously she served as our Vice President of Research since January 2003 and Vice President of Research and Clinical since September 2008. From November 2002 to January 2003, Dr. Tweden was a consultant to Venturi Group, a medical device incubator company. From January 2003 through August 2004, Dr. Tweden worked for Venturi Development Inc. as a consultant to ETRM.
ETRM has had a strong start to 2017 with regaining NASDAQ compliance, closing a $19 million public offering, and having the first successful implant of its vBloc® therapy at the McGuire Veterans Affairs Medical Center.
Keep watching ETRM has the stock appears to be curling up and may be attracting more investor interest as the company continues to execute its business plan.
Disclosure: We have no position in ETRM and have not been compensated for this article.