EnteroMedics Inc. today reversed course on the results of its Maestro System device for treating obesity.
The Roseville-based company reported today that after further reviewing the study of a clinical study, the device “may promote safe and effective weight loss”.
Even with the “may” qualifier, that’s a significant change from early October, when company said its initial results from the study showed the device was not effective.
Enteromedics stock plunged more than 75 percent after that news.
The Roseville-based company’s device uses electrical stimulation in the brain to regulate nerves that control digestion and appetite. Company officials hoped it could serve as an alternative to bariatric surgery.
Although its initial report of the study as discouraging, the company said upon further review that vagal nerve blocking therapy may work in combination with behavioral support diet and exercise in morbidly obese patients.
The company is continuing to analyze the data and about 252 patients remain in the study and are receiving vagal blocking therapy. The firm also plans to discuss the outcome of the study with the U.S. Food and Drug Administration to "determine the appropriate regulatory path forward for the Maestro System as a treatement for morbid obesity," according to a statement from Mark Knudson, president and CEO.
On Oct. 26, the company announced it was slashing its work force by 40 percent, leaving it with only 33 employees.
The stock of EnteroMedics (Nasdaq: ETRM) at 1 p.m. Thursday is up 6 cents per share, or about 9 percent, to 69 cents per email@example.com