Shares in Obalon Therapeutics (NSDQ:OBLN) fell today after the medtech company missed expectations on Wall Street with its 1st quarter results.
The San Diego-based company posted a net loss of -$7.75 million on sales of $1.47 million for the 3 months ended Dec. 31, for bottom-line loss of -54% on sales growth of 37% compared with the same period last year.
Adjusted to exclude 1-time items, earnings per share were -47¢, behind consensus on The Street, where analysts were looking for -33¢.
Obalon’s swallowable, intragastric balloon is indicated for weight loss in adults 30 to 100 pounds overweight, with a body mass index of 30 to 40, who have failed to lose weight through diet and exercise. The device is designed to be swallowed in a capsule. Once the capsule reaches the stomach, it inflates with gas, partially filling the stomach to help patients feel full and eat less.
Up to 3 balloons may be added during treatment, after which they’re removed via an endoscopic procedure no longer than 6 months later.
OBLN shares were trading at $11.03 apiece today in afternoon trading, down -4.6%.