EnteroMedics (NSDQ:ETRM) said last week it inked a deal with Southern California Permanente Medical Group to initiate a study investigating the use of its Maestro vBloc system for treating Type 2 diabetes patients with obesity.

The Maestro device is an implantable neurostimulation device designed to intermittently block the vagus nerves using high-frequency, low-energy impulses. The therapy, which the company calls “vBloc,” is approved in the U.S., Europe and Australia to aid in weight loss in obese adults with a body mass index of 40 to 45 or a related health condition and a BMI of 35 to 39.9.

Through the deal, the St. Paul, Minn.-based company will pay Southern California Permanente Medical Group approximately $3.4 million over 3 years to fund the study, which will be led by Dr. Anny Xiang and Dr. Robert Zane.

Data generated in the study will be given to Enteromedics to be used by the company, according to an SEC filing, while both Permanente and Enteromedics will have the rights to publish, present or use final results from the trial. The agreement can be terminated by either party with 30 days written notice.

In February, Enteromedics released a real-world assessment of weight loss data from patients using its Maestro vBloc therapy device and associated programs, touting between 9% and 10% total weight loss at 6 and 9 months, respectively.