EnteroMedics (ETRM) Stock: Heading Upward On Study Results


EnteroMedics Inc (NASDAQ: ETRM)

EnteroMedics is having a strong day in the market today, and for good reason. The company published results from a 24-month clinical study, showing overwhelmingly positive data. Today, we’ll talk about the data that was released, how the stock reacted to the news, and what we can expect to see from ETRM moving forward.

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ETRM Releases Positive Study Results

As mentioned above, EnteroMedics is seeing strong activity in the market today after publishing results from a key study. The study was a 24 month study known as ReCharge.

The study was a double blind, randomized, sham-controlled, multicenter, pivotal clinical trial of the company’s vBloc Neurometabolic Therapy to treat obesity. During the release, ETRM showed that the treatment was both effective and safe. At the 24-month mark, patients treated with vBloc Therapy realized excess weight loss in the amount of 21%, with mean total weight loss at 8%.

Another interesting finding realized in the trial had to do with pre-diabetes or metabolic syndrome. The trial found that about 50% of patients with pre-diabetes or metobolic syndrom demonstrated a resolution of the issue.

Finally, the study showed that vBloc Therapy had a strong safety profile. In the release, ETRM explained that, at 24 months, the safety profile of the therapy was favorable when compared to complications observed with conventional bariatric procedures. In a statement, Dan Gladney, CEO at EnteroMedics, had the following to say with regard to the results:

These findings are crucial as we continue to advance towards our goals of both expanding the reach of this proven technology, as well as obtaining reimbursement for patients in need… These results, in combination with the first-had patient success stories we’ve had the privilege of learning about, leave us confident that vBloc combined with the vBlock Achieve program, a comprehensive, personalized wieght loss support program to help vBloc patients reach and maintain health goals, hold strong potential to serve as a highly effective option in patients in dire need of new approaches to treat their obesity.”

How The Market Reacted To the News

As investors, one of the first things that we learn is that the news moves the market. In this particular case, the news surrounding ETRM is overwhelmingly positive. As a result, we’re seeing gains in the value of the stock today. Currently (12:30), the stock is trading at $0.17 per share after a gain of 1.48% thus far today.

What We Can Expect To See Moving Foward

Moving forward, I have a relatively bullish opinion of what we can expect to see from ETRM. First and foremost, I believe that the stock is heavily undervalued at the moment. While the company still has a few hurdles to get over, they are doing a compelling job when it comes to vBloc Therapy. Given the release, I’m expecting to see more revenue in this area relatively soon. While there are still questions with regard to the company’s future, at $0.17 per share, I don’t think that we can expect to see any more meaningful downward movement out of EnteroMedics any time soon.

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What Do You Think?

Where do you think ETRM is headed moving forward and why? Join the discussion at TalkTRENDZ!

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