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...
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