Neurostimulation systems maker EnteroMedics (NSDQ:ETRM) saw widening losses during its 2nd quarter as the company continues to navigate the FDA process to win approval for the Maestro Rechargeable System’s VBLOC implant, a neurostimulation device for treating obesity.
The pre-revenue company posted losses of $6.3 million, or 11¢ per share, during the 3 months ended June 30, 2013. That compared with $5 million in losses, or 13¢ per share, during the same period last year. That’s a 27.6% widening in net losses, but a 15.4% decrease in per-share losses, attributable mostly to a 43.8% increase in the number of shares.
The company’s per-share earnings fell exactly in line with analysts’ expectations, but there was no movement on Wall Street as ETRM shares were frozen at $1.16 in the hours following the earnings release.
In a separate release EnteroMedics announced that it had signed a $20 million "at-the-market" equity distribution agreement with Canaccord Genuity Inc. listed as the sole agent. The new financing is slated to replace EnteroMedics’ $45 million equity facility with Terrapin Opportunity, according to a press release.
The new funding will help the company as it continues to navigate regulatory pathways and expand its commercial reach.
The Minnesota medical device maker has made big moves in recent months, including finally filing for FDA premarket approval for its flagship VBLOC vagal blocking therapy as a treatment for obesity. The federal watchdog agency earlier this month accepted the application for review.
Check out MassDevice’s Q&A with EnteroMedics CEO Mark Knudson and CFO Greg Lea
The VBLOC system stimulates the vagus nerve, located between the stomach and the esophagus, in order to alter a patient’s eating habits by modifying their physiological cravings. The Maestro system has been on the European market since winning CE Mark approval in 2011.
