Obalon Therapeutics (NSDQ:OBLN) said today that it inked the first lease in its pivot to a brick-and-mortar retail strategy.
The San Diego space is slated to become the Carlsbad, Calif.-based company’s first weight-loss center. Obalon, which developed a gas-filled balloon designed to treat obesity, in April laid off 50% of its employees in announcing the shift to retail. The company later tapped an advisory firm to explore “strategic alternatives” and slashed its debt load.
Today Obalon said it hopes to have the San Diego location open this fall.
“We are transitioning the business with the intent to create a network of Obalon retail centers in the United States, where patients can access our novel weight loss treatment in an environment dedicated to a standardized experience and achieve the most successful outcomes,” chief retail officer Bob MacDonald said in prepared remarks. “We have shown in the past that patient interest in the Obalon balloon system has been high with moderate direct-to-consumer marketing, and we believe Obalon-owned centers may provide a more efficient means to convert patient interest into Obalon customers. We are targeting the opening of our first center in San Diego this fall.”