EnteroMedics (ETRM) tanks in after hours trading after its electric shock device for weight-loss...


EnteroMedics (ETRM) tanks in after hours trading after its electric shock device for weight-loss failed to meet its key goal in clinical trials. The goal was to help patients lose 10% more of their excess weight than patients implanted with a nonworking, or "sham," device. The 10% threshold was agreed upon by the company to meet the FDA's request that the device show " super superiority." However, the company says it still plans to forge ahead with seeking regulatory approval. Shares -50% AH.

From other sites
Comments (3)
  • SoldHigh
    , contributor
    Comments (991) | Send Message
     
    How about we all strive to eating right and exercise?
    7 Feb 2013, 07:01 PM Reply Like
  • wheelz23
    , contributor
    Comments (66) | Send Message
     
    Electric shock device? So if they eat too much, they get tasered!
    7 Feb 2013, 07:11 PM Reply Like
  • Ronald Aquino
    , contributor
    Comments (21) | Send Message
     
    I think there's some overreaction by investors about the ReCharge trial results. The VBLOC Therapy did miss the 10% "super superiority" threshold, but it did show a 8.5% superiority to the sham group which they say is clinically meaningful and statistically significant. I think the fact it passed the safety endpoint by a wide margin (3.1% versus the 15% pre-specified threshold) is more important when it comes to FDA approval. I don't know how the FDA evaluates "super superiority" results over superior results when it comes to weight loss but I would think they would care more about the device's safety more than anything else. It can even be argued that it's not healthy to lose so much fat in a short period of time and a gradual weight loss reduction would be better and more sustainable in the long run. If that's true, then VBLOC therapy can be advertised as being a healthier alternative to gastric-bypass.

     

    Considering the uniqueness of the Maestro Rechargeable System and the market for it (studies suggest 42% of Americans will be obese by 2030), I think a buck and some change is too cheap for the profit potentials ($1.43/share AH). Even if worse case scenario they fail to get FDA approval, The Maestro Rechargeable System has already received CE Mark in Europe and has been listed on the Australian Register of Therapeutic Goods (ARTG) by the Therapeutic Goods Administration (TGA) for supply in Australia. There's a world wide market for effective obesity weight loss products. When they show real results from people abroad losing weight using the Maestro device I'm sure the USA is bound to follow. Investors are already pricing in utter failure and at this price point the stock will surely jump once EnteroMedics (ETRM) turns profitable. I will most likely be owning some shares soon.
    7 Feb 2013, 10:57 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs