Where Is ETRM Stock Headed Next?
EnteroMedics Inc (NASDAQ:ETRM) was down almost 25% by late-morning trading on Tuesday as ETRM stock continues to be a volatile share so far in 2017.
Just a few weeks ago, ETRM stock was posting multiple days of 100%-plus growth. Not exactly a sustainable rate of growth, to be sure, but the company was benefiting from a recent announcement regarding its “vBloc” neurometabolic therapy. The vBloc treatment is essentially a pacemaker that helps curb your hunger. It is employed as a treatment for obesity.
But the company’s earlier success has been missing as of late. Shares are down 41% since the last big surge on January 10. The drop may be a result of those earlier fast and furious gains.
Here’s a more elaborate description of the product that has been a big driver in ETRM stock’s previous success earlier in the month.
MedStar Health in Maryland and Roper St. Francis in South Carolina were two new major institutions to begin using the therapy, according to the company’s announcement.
The vBloc treatment works to control the sensations of hunger by using a pacemaker-like device that is implanted under the skin. The device simulates fullness in the user and therefore acts as a first line of defense against binge-eating or other unhealthy actions.
A press release from EnteroMedics Inc explains more about the vBloc treatment:
vBloc Therapy is approved for use in helping with weight loss in people aged 18 years and older who are obese, with a BMI of 40 to 45 kg/m2, or a BMI of 35 to 39.9 kg/m2 with a related health condition such as Type 2 diabetes, high blood pressure, high cholesterol levels or obstructive sleep apnea who have had a poor response to trying to lose weight under supervision in the last 5 years.
(Source: “Commercial Patient Data Confirms Success of EnteroMedics’ vBloc Therapy in Combination with vBloc Achieve Program in Patients Struggling to Lose Weight,” EnteroMedics Inc, December 15, 2016.)