EnteroMedics Inc. (NSDQ:ETRM) posted a fourth-quarter net loss of $2.9 million for the three months ended Dec. 31, 2009, compared with a net loss of $7.8 million during the same period in 2008:
Press Release
EnteroMedics Reports Fourth Quarter and Full Year 2009 Financial
Results
ST. PAUL, Minn.–(BUSINESS WIRE)–EnteroMedics Inc., (NASDAQ: ETRM), the developer of medical devices
using neuroblocking technology to treat obesity and other
gastrointestinal disorders, today announced financial results for the
three months and full year ended December 31, 2009.
For the full year 2009, the Company reported a net loss of $31.9
million, or $1.07 per share, research and development expenses of $15.6
million, and general and administrative expenses of $8.6 million. For
the fourth quarter ended December 31, 2009, the Company reported a net
loss of $2.9 million, or $0.08 per share. Expenses were primarily
associated with the cost of supporting the Company’s multiple ongoing
clinical trials as well as the continued development of VBLOC® vagal
blocking therapy delivered through the Company’s Maestro® System. On
December 31, 2009, the Company’s cash, cash equivalents and short-term
investments totaled $14.6 million, which does not reflect the proceeds
of its January 14, 2010 agreement with institutional investors to raise
$4.8 million in a registered direct offering of its common stock.
“We remain encouraged by the weight loss, diabetes and hypertension data
emerging from our Maestro System development program, particularly
results from our next-generation rechargeable device, since announcing
the results of our EMPOWER study early in the fourth quarter,” said
President and CEO Mark B. Knudson, Ph.D. “We look forward to the
continued development of the Maestro System as a treatment for morbid
obesity and its related co-morbidities, diabetes and hypertension.”
Gregory S. Lea, Senior Vice President and Chief Financial Officer of
EnteroMedics added: “Since the beginning of the fourth quarter, we have
taken steps to strengthen our balance sheet through two equity
financings and repayment of over half of our outstanding debt. These
efforts, along with cost-cutting measures implemented in the fourth
quarter of 2009, provide us with the resources to fund operations into
the second half of 2010.”
About EnteroMedics Inc.
EnteroMedics is a development stage medical device company focused on
the design and development of devices that use neuroblocking technology
to treat obesity and other gastrointestinal disorders. EnteroMedics’
proprietary neuroblocking technology, VBLOC® vagal blocking therapy, is
designed to intermittently block the vagus nerves using high-frequency,
low-energy, electrical impulses. These electrical impulses are delivered
by a neuroregulator which is powered either by an external controller
(Maestro RF System) or an integrated rechargeable battery (EnteroMedics’
next-generation Maestro RC System). EnteroMedics is currently conducting
a feasibility study examining VBLOC Therapy’s effects on blood glucose
levels in diabetic patients outside of the United States. For more
information, visit www.enteromedics.com.