EnteroMedics Inc (NASDAQ:ETRM) announced the appointment of President and Chief Executive Officer Dan Gladney as Chairman of the Board of Directors, effective October 14, 2016. Mr. Gladney will succeed Dr. Mark Knudson, co-founder of EnteroMedics, who will be retiring from the Board. Dr. Knudson will be Special Advisor to the CEO on clinical and scientific activities following his retirement. As part of this transition, the EnteroMedics Board will take action at its December meeting to create an Independent Lead Director position and has asked the Nominating and Governance Committee to recommend a candidate for appointment to that position.
“It is an honor to lead the EnteroMedics Board of Directors at such a pivotal time for the company,” said Mr. Gladney. “EnteroMedics’ commitment to combatting morbid obesity only gets stronger as we press onward towards our goals of both obtaining broad reimbursement coverage for vBloc Therapy® and ensuring that this proven option is as widely available as possible. I would like to thank Mark for his service and dedication to the company over the last 14 plus years.”
“Dan is a highly capable, effective executive with a proven track record of success at EnteroMedics,” said Dr. Knudson. “It has been a privilege to lead the EnteroMedics’ Board of Directors, and knowing that Dan will be taking over leaves me confident that the company will maintain its dominant position in the neuromodulation device industry in the areas of obesity, diabetes and gastrointestinal disorders.” (Original Source)
Shares of Enteromedics are currently trading at $0.152, up $0.003 or 1.94%. ETRM has a 1-year high of $4.95 and a 1-year low of $0.11. The stock’s 50-day moving average is $0.16 and its 200-day moving average is $0.50.
On the ratings front, Roth Capital analyst Chris Lewis downgraded ETRM to Hold, with a price target of $0.50, in a report issued on June 9. The current price target implies an upside of 233.3% from current levels. According to TipRanks.com, Lewis has a yearly average return of 7.0%, a 57.6% success rate, and is ranked #410 out of 4183 analysts.
EnteroMedics, Inc. is a clinical development stage medical device company that engages in the design and development of devices that use neuroblocking technology to treat obesity, metabolic diseases and other gastrointestinal disorders. Its proprietary neuroblocking technology is designed to intermittently block the vagus nerve using high frequency, low energy, electrical impulses. Its initial product Maestro System, which uses VBLOC therapy to affect metabolic regulatory control, limit the expansion of the stomach, help control hunger sensations between meals, reduce the frequency and intensity of stomach contractions and produce a feeling of early and prolonged fullness.