EnteroMedics Inc (NASDAQ: ETRM)
EnteroMedics is having an incredibly strong day in the market today, and for good reason. The company announced that it has received an important notice from the European Patent Office. Today, we’ll talk about the news, what we’re seeing from the stock as a result, and what we can expect to see from ETRM moving forward. So, let’s get right to it…
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ETRM Announces Notices Of Intention To Grant A European Patent
As mentioned above, EnteroMedics is having a very strong day in the market today after announcing patent news. According to the company’s early morning announcement, they have received a Notice of Intention to Grant a European Patent.
In the announcement, we learned that the European Patent Office intends to grant ETRM a patent that covers safety features associated with its vBloc Neurometabolic Therapy System. This is incredibly strong news as vBloc continues to gain steam. Today’s news adds to the intellectual property protecting the therapy from competitors.
In a statement with regard to the news, Dan Gladney, President and CEO at ETRM, had the following to offer:
“Reciept of the Notice of Intention to Grant a European Patent underscores the strength and robust nature of our intellectual property portfolio, and reaffirms EnteroMedics’ dominant presence within the neuromodulation device industry in the areas of obesity and gastrointestinal disorders… As we continue to commercialize and seek broad reimbursement coverage for vBloc Therapy in the United States of America, we look forward to the opportunity to offer our technology in international markets.”
How The Stock Reacted To The News
As investors, one of the first things we learn is that the news moves the market. Any time positive news is released with regard to a publicly-traded company, we can expect to see gains in the stock associated with that company. Adversely, negative news will generally lead to declines. The news released by ETRM today was overwhelmingly positive. After all, expanding protection on an international level is always a positive thing. As a result, we’re seeing strong gains in the value of the stock today. Currently (1:29), it is trading at $0.14 per share after a gain of $0.03 (25.30%) thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from EnteroMedics. All in all, the company’s vBloc therapy is being surrounded by an increasing amount of good news as time goes by. Recently, I was impressed with what Frank H. Chae, MD, FACS, Chief Surgeon and Head of the Bariatric Center at Sky Ridge Medical Center, had to say about the therapy. His statements showed that from a practicing physician’s standpoint, vBloc is an incredible success. Here’s what he had to say:
“The weight loss observed in my vBloc patients is trending greater than reported in the vBloc ReCharge study… Our patients have experienced more than 30% improvement in the percent total weight loss (TWL) in the first three months when compared to the ReCharge Study patients. While our observations are not a clinical trial, the positive results of these practical applications should be recognized, particularly as vBloc moves towards obtaining broad reimbursement coverage.
vBloc Therapy is a revolutionary treatment option for borbidly obese patients who do not wish to undergo anatomy-altering weight-loss procedures… I would expect vBloc to be the preferred choice of eligible patients when there is insurance coverage and they do not have to carry the full financial burden themselves.”
There you have it my friends, ETRM is doing incredible things with vBloc. Now that it is strengthening the production surrounding the therapy, and moving into international markets, I’m expecting to see incredible gains ahead.
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