EnteroMedics Inc. (NASDAQ: ETRM), the developer of medical devices using neuroblocking technology to treat obesity, metabolic diseases and other gastrointestinal disorders, today announced financial results for the three and six months ended June 30, 2014.
For the three months ended June 30, 2014, the Company reported a net loss of $7.5 million, or $0.11 per share. Research and development expenses were $3.1 million and selling, general and administrative expenses were $4.3 million. For the six months ended June 30, 2014, the Company reported a net loss of $14.2 million, or $0.21 per share. Operating expenses were primarily associated with the cost of supporting the Company's VBLOC® vagal blocking therapy Premarket Approval (PMA) application process, multiple ongoing clinical trials, including the ReCharge Study, and the continued development of VBLOC Therapy delivered through the Company's Maestro® Rechargeable System. On June 30, 2014, the Company's cash, cash equivalents and short-term investments totaled $21.7 million. In June 2014 the Company had closed out the $20.0 million "at-the-market" (ATM) equity facility with Canaccord Genuity Inc. having raised gross proceeds of $19.9 million through that facility. The Company also announced during the second quarter that they have entered into a new ATM equity facility with Cowen and Company, LLC for gross proceeds of up to $25.0 million. To date, the Company has not issued any shares under this new facilty.
"During the second quarter, our efforts were squarely focused on the U.S. regulatory process for VBLOC Therapy, including extensive preparation for our June 17, 2014 U.S. FDA Advisory Committee Meeting which resulted in a vote in favor of VBLOC Therapy based on its relative benefits versus risks," said Greg S. Lea, Senior Vice President, Chief Financial Officer and Chief Operating Officer. Mr. Lea noted: "We believe that our current resources will allow us to begin to build our commercial infrastructure as we continue to work towards our pivotal regulatory milestone, an FDA approval decision, which is expected later this year."