Obalon Therapeutics (NSDQ:OBLN) said last week that it treated the first patients at its company-owned Obalon Center for Weight Loss in San Diego.
The San Diego-based company produces an FDA-approved swallowable, gas-filled intra-gastric balloon for non-surgical weight loss. Obalon said the new center is staffed with physicians specializing in weight loss, along with nutritional counselors and other staff to help provide treatment with the Obalon balloon system.
Obalon added that it plans to provide more information on the center’s strategy in November when it reports its third-quarter financial results.
“We are very pleased to commence operations at the Obalon Center for Weight Loss,” president & CFO William Plovanic said in prepared remarks. “We opened this direct channel to treat patients in order to improve outcomes and the access and affordability for patients with obesity seeking to lose weight with the Obalon Balloon System. We invented, developed, manufactured, and now are facilitating delivery of this important therapy with the Obalon Balloon directly to patients.”
“I am very pleased to be part of the first Obalon Center for Weight Loss,” added Dr. Rita Starritt, a treating physician at the new center. “There are so many patients with obesity who want to lose weight but are frustrated by and have failed conventional diet and exercise programs. The Obalon Balloon System is an FDA-approved, scientifically proven, non-surgical weight loss solution for people who are approximately 30 to 100 pounds overweight or have a BMI between 30 and 40. Published results from clinical trials supporting FDA approval showed a strong safety profile and demonstrated that patients receiving the Obalon Balloon System had twice as much weight loss than patients who received a placebo device with diet and exercise therapy.”
Earlier this month, Obalon paid off the remaining $5 million of its long-term debt, having previously cut its debt to Pacific Western Bank from $20 million down to the $5 million in July, while also announcing that it added $8.8 million to its coffers.
In April, the company laid off 50% of its employees, including all of its direct sales force, in a pivot toward retail. Two months later, Obalon registered a $17 million stock offering to finance the pivot, then inked the first lease in its change to a brick-and-mortar retail strategy in July.
Shares of OBLN were down -3.4% at $1.69 per share in midday trading today.