EnteroMedics stock is having an incredible day in the market today. Not only is the stock recovering from recent market downtrends, but it also received a nice kick as the result of encouraging commercialization information. Also, the company’s CEO has made the decision to step down. Today, we’ll talk about how commercialization is helping the stock, why the CEO is stepping down, and what we can expect to see moving forward.
EnteroMedics “Metrics Are Tracking Ahead Of Management”
Smart Analyst recently released a story with regard to a key analyst’s optimistic views of EnteroMedics. The analyst, William Plovanic of Canaccord had the following to say…
“We are encouraged by the initial commercialization progress with 51 centers certified and 77 surgeons trained on the procedure. These metrics are tracking ahead of management guidance and other expectations which called for 30 certified sites by YE2015 previously. Additionally, EnteroMedics provided color regarding its DTC campaigns and educational webinars to drive patients to vBlock Therapy. Lastly, EnteroMedics has expanded access to the procedure through financing options and reimbursement support.”
As a result of the analyst’s positive views with regard to commercialization, Plovanic maintained a “Buy” rating on the stock with a price target of $2.50.
ETRM CEO Is Stepping Down
In other news, Street Insider recently broke the story that EteroMedics’ Founder, CEO, President and Chairman, Mark B. Knudson, Ph.D., has made the decision to retire. In his notification to the company, he stated that he would be retiring effective December 31st, 2015. However, he will hold his seat on the EnteroMedics Board of Directors as Chairman. ETRM has appointed a Member of the Company’s Board of Directors by the name of Jon Tremmel as consultant to the CEO. He will also lead the search committee regarding the company’s search to find a successor to Dr. Knudson. In a statement, Dr. Knudson had the following to say…
“I have had the privilege of being involved in numerous companies from conception to generation and have found it particularly rewarding to see EnteroMedics’ vBlock Neurometabolic Therapy evolve to where it stands now, available to both patients and physicians who have been waiting over a decade for a new treatment option for obesity and its comorbidities… I am extremely proud of the way we have overcome multiple challenges along the way and of the progress we’ve made thus far. I feel confident that the company is headed in the right direction. I will continue to lead the organization through the transition and look forward to maintaining my role as Chairman of the Board.”
ETRM In The Market Today
EnteroMedics is having a great day in the market today. Currently (1:29), the stock is trading at $0.28 per share after a gain of 21.07% so far today.
What To Expect Moving Forward
Considering that vBlock Neurometabolic commercialization is going well, I believe that we have plenty of good news to expect moving forward. Also, while Dr. Knudson will be stepping down as CEO, he will still maintain an integral role in the company. All in all, things seem to be looking up for ETRM.
What Do You Think?
Where do you ETRM is headed and why? Let us know in the comments below!