Obalon Therapeutics Inc (NASDAQ: OBLN) is flying early on in the trading session this morning, and for good reason. The company released positive clinical data, exciting investors and sending the stock screaming for the top. Today, we’ll talk about:
- The clinical data;
- what we’re seeing from OBLN stock as a result; and
- what we’ll be watching for ahead.
OBLN Stock Rockets On Clinical Data
As mentioned above, Obalon Therapeutics is having a great day in the market after announcing positive clinical results. The results were shared via press release early this morning.
In the release, OBLN announced that expanded data from its large-scale commercial use study was presented at the Digestive Disease Week 2019 Annual Conference. The company said that results from a United States Registry continue to demonstrate the real-world utility of the Obalon Balloon System with 1,411 patients showing weight loss and positive safety results.
The company said that average weight loss for indicated patients receiving three balloons and six months of therapy was 21.7 points. This proved to be a 10.2% average reduction in total body weight. Moreover, moret han 50% of patients saw more than 10% total body weight loss with 77.9% of patients losing more than 5% of their total body weight.
In a statement, Shelly Sullivan, M.D., Director of the Gastroenterology Metabolic and Bariatric Program at the University of Colorado School of Medicine, had the following to offer with regard to the OBLN data:
The Obalon Balloon registry is the largest endoscopic bariatric therapy registry series in the US. The additional data collected showed significant weight loss in patients treated with this therapy in clinical practice with a good safety profile. These results remain consistent with our previous publications.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves in the market. In the case of Obalon Therapeutics, the news proved to be incredibly positive.
After all, real-world data continues to prove efficacy and safety, which will likely lead to stronger sales volume moving forward. So, it’s not surprising to see that excited investors are pushing the stock for the top.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:52), OBLN is trading at $0.91 per share after a gain of $0.52 per share or 136.08% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on OBLN. In particular, we’re interested in following the company’s continued work surrounding its Obalon Balloon System as the treatment is proving to be effective and may see a strong increase in sales ahead. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!
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