EnteroMedics Inc (NASDAQ:ETRM), the developer of medical devices using neuroblocking technology to treat obesity, metabolic diseases and other gastrointestinal disorders, today announced that analyses of the ReCharge Study demonstrated Excess Weight Loss (EWL) of 34% and significant improvements in obesity-related risk factors for vBloc® Therapy treated, moderately obese patients who had at least one comorbidity. These data were presented at the International Federation for the Surgery of Obesity and Metabolic Diseases 20th World Congress in Vienna, Austria on August 26, 2015.
“These subgroup analyses of the ReCharge Study, which demonstrated excess weight loss of 34% and major improvements in obesity related risk factors, show the profound and clinically meaningful effect of vBloc Therapy in patients with a Body Mass Index (BMI) of 35-40 kg/m2,” said Scott Shikora M.D. F.A.C.S, EnteroMedics Executive Vice President and Chief Medical Officer, “These results show significant benefits as it relates to weight loss and relief of comorbidities and improved safety relative to anatomy altering and restrictive procedures, making vBloc an attractive alternative for those patients unwilling to undergo more drastic procedures to regain their health.”
Weight Loss and Safety Results at 12 Months
The ReCharge pivotal trial is a prospective double-blind, sham-controlled clinical trial of vBloc Neurometabolic Therapy for the treatment of obesity. The trial includes 239 randomized (2:1) patients with a BMI of 40-45kg/m2 or 35-40 kg/m2 with at least one obesity-related condition(s). These analyses of the ReCharge Study evaluated the efficacy, safety and comorbidity impact of vBloc Therapy (n=53) and sham (n=31) on patients with moderate obesity (BMI 35-40 kg/m2) and one or more comorbidities.
Mean EWL at 12 months in the per-protocol group (defined as subjects with 12 month data, correct treatment randomization who received treatment within 45 days of implant) was 34+26% (95% CI, 26 to 41) in vBloc group and 19+18% (95% CI, 12 to 27) in sham group. 87% of the subjects remained in both groups at the end of the 12 months. No serious device-related complications were observed in the first year. (Original Source)
In reaction to the news, shares of Enteromedics jumped 35.98% to $0.37 in after-hours trading. ETRM has a 1-year high of $2.05 and a 1-year low of $0.20. The stock’s 50-day moving average is $0.29 and its 200-day moving average is $0.85.
On the ratings front, Canaccord Genuity analyst William Plovanic reiterated a Buy rating on ETRM, with a price target of $2.50, in a report issued on August 24. The current price target represents a potential upside of 825.9% from where the stock is currently trading. According to TipRanks.com, Plovanic has a total average return of 10.8%, a 54.0% success rate, and is ranked #186 out of 3742 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.