EnteroMedics Inc (NASDAQ: ETRM)
EnteroMedics is having a relatively strong day in the market today, and for good reason. The company made an announcement this morning surrounding vBlock Neurometabolic Therapy. Today, we’ll talk about the news, how the stock reacted to the news, and what we can expect to see from ETRM moving forward.
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ETRM Gains On vBloc News
As mentioned above, EnteroMedics is having a strong day in the market today after announcing that its vBloc Neurometabolic Therapy is now available in the United States to veterans at U.S. Department of Veterans Affairs (VA) medical facilities. This is incredible news for the company, as it opens the door to a much wider potential audience.
The previously announced partnership between EnteroMedics and Academy Medical, LLC, made this possible. Ultimately, under this partnership, ETRM benefits from Academy Medical’s certification as a Service-Disabled Veteran-Owned Small Business that specializes in the distribution of medical products to VA and Department of Defense Facilities. According to the agreement, as of October 1st, vBloc was added to the Academy Medical 5-year sole source agreement with the United States Department of Veterans Affairs. This means that any VA surgeon in the United States is now able to purchase the vBloc System from Academy Medical under the national contract. Along with the release of the news, Dan Gladney, President and CEO at ETRM, had the following to offer:
“We are very pleased that VA surgeons now have the ability to treat over one million eligible veterans fighting obesity with vBloc Therapy… The veterans of our armed services, as well as all patients, deserve access to every option that may help in their battle against obesity. We look forward to working closely with the VA and Academy Medical to train VA surgeons so they are prepared to offer vBloc Therapy and perform iplants as soon as possible.”
What We’re Seeing From The Stock
It’s no secret that the news released with regard to EnteroMedics was overwhelmingly positive. At the end of the day, the company’s flagship therapy is now going to be available to more patients. As a result of the overwhelmingly positive news, we’re seeing strong gains in the value of the stock today. Currently (11:07), ETRM is trading at $0.13 per share after a gain of $0.01 per share (5.60%) thus far today.
What We Can Expect To See Moving Forward
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Moving forward, I have an overwhelmingly bullish opinion of what we cane expect to see from EnteroMedics. While investors have been concerned with the company’s revenue and earnings, I believe that the company is on an important step here. At this point, vBloc is approved and being used in several facilities. Lately, the company has been working on increasing their audience for the treatment, and with today’s news, they’ve done just that. Moving forward, I expect that ETRM will continue to work hard on increasing the audience and getting this product to profitability. All in all, I’m expecting to see further gains on ETRM ahead.
What Do You Think?
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