EnteroMedics Inc (NASDAQ:ETRM) the developer of medical devices using neuroblocking technology to treat obesity, metabolic diseases and other gastrointestinal disorders, today announced financial results for the three and six months ended June 30, 2015.
For the three months ended June 30, 2015, the Company reported its first U.S. sales of $79,000 with gross profits totaling$48,000. The Company reported a net loss of $7.4 million, or $0.10 per share, including selling, general and administrative expenses of $4.9 million and research and development expenses of $2.5 million. For the six months ended June 30, 2015, the Company reported a net loss of $14.6 million, or $0.20 per share. Operating expenses were primarily associated with commercialization of the Company’s vBloc® Neurometabolic Therapy, including marketing and reimbursement activities, the cost of supporting multiple ongoing clinical trials, and the continued development of vBloc Therapy delivered through the Company’s Maestro® Rechargeable System. On June 30, 2015, the Company’s cash, cash equivalents and short-term investments totaled$4.8 million. On July 8, 2015 the Company closed a public offering that generated net proceeds of approximately $14.7 million.
“We are pleased that we have recorded our first U.S. Commercial sales so soon after FDA approval. Our emphasis over the next few quarters will be on managing our current resources to increase our commercial momentum by keeping us on our critical path with respect to sales, marketing and reimbursement,” said Greg S. Lea, Chief Financial Officer and Chief Operating Officer. “We are in the process of implementing a number of initiatives that will allow us to manage our expenses over the next year, giving us the necessary resources to execute on our commercial strategy well into 2016.” (Original Source)
Shares of Enteromedics closed yesterday at $0.308. ETRM has a 1-year high of $2.05 and a 1-year low of $0.30. The stock’s 50-day moving average is $0.56 and its 200-day moving average is $0.97.
On the ratings front, Canaccord Genuity analyst William Plovanic maintained a Buy rating on ETRM, with a price target of $2.50, in a report issued on July 21. The current price target implies an upside of 706.5% from current levels. According to TipRanks.com, Plovanic has a total average return of 14.4%, a 64.3% success rate, and is ranked #90 out of 3727 analysts.
EnteroMedics Inc is a medical device company. The Company is focused on the design and development of devices that use neuroblocking technology to treat obesity, metabolic diseases and other gastrointestinal disorders.