EnteroMedics Inc (NASDAQ: ETRM) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company has announced that it has acquired BarioSurg. This led to excitement among investors, causing gains and prompting our partners at Trade Ideas to alert us to the movement. At the moment (9:24), ETRM is trading at $6.07 per share after a gain of $1.48 per share or 32.24% thus far today.
ETRM Acquires BarioSurg
As mentioned above, EnteroMedics is having a strong day in the market today after announcing that it has acquired BarioSurg, Inc. BarioSurg is the investor of Gastric Vest, an investigational, minimally-invasive, laparoscopically implanted medical device. Lining up with the ETRM vBloc, Gastric Vest is designed to help treat morbid obesity.
The Gastric Vest device is wrapped around the stomach. Once there, it emulates the effect of conventional weight loss surgery. However, the treatment doesn’t permanently change the patient’s anatomy.
Gastric Vest is also proving to be effective. In fact, in a pilot study that was conducted out of the United States, patients that were treated with Gastric Vest demonstrated a mean percent excess weight loss of 85% after 12 months. This came with an average drop in HbA1c of 2.1 points as well as an average waist circumference reduction of 38 centimeters or approximately 15 inches.
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