Friday was not a good day for EnteroMedics (ETRM)
shareholders. Although it would be a stretch to say that there was a
real expectation that this company had a high-potential weight loss
solution in its hands (the market cap was about $125 million prior to
Friday's news), there were definitely some analysts and investors who
thought that the company's VBLOC therapy and Maestro system had
potential in treating morbidly obese individuals.
While the
company's ReCharge study was a technical failure, there was evidence of
efficacy from the device and the safety profile was pretty clean. Even
so, convincing the FDA to approve this system may not even be the
biggest issue for the company. The bigger issue is whether the company
can sell physicians, insurance companies, and ultimately patients on the
device.
Continue reading here:
EnteroMedics May Get Approval, But Will It Get Sales?
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