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EnteroMedics acquires ReShape, FDA-approved gastric balloon for obesity

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With the acquisition of the medical technology company ReShape Medical Inc., EnteroMedics Inc. has added the ReShape Dual Weight Loss Balloon, an FDA-approved, minimally invasive intragastric balloon designed to treat obesity, to its portfolio, according to a press release.

EnteroMedics, which develops technology to treat obesity and metabolic diseases, had previously obtained the Gastric Vest System, designed to help patients feel full and eat less, through its acquisition of BarioSurg Inc. in May 2017. With this acquisition of ReShape Medical, which developed the first and only gastric balloon of its kind to be approved by the FDA, EnteroMedics will also add the ReShape Integrated Dual Balloon System to its portfolio, per the release. The dual balloon technology involves a nonsurgical weight loss procedure that is designed to help people with a BMI of 30 kg/m² to 40 kg/m², and at least one co-morbidity, lose weight and provides another option to bariatric surgery, according to the press release.

“EnteroMedics and ReShape Medical are two innovative companies that share a strong strategic focus on providing proprietary, patient-friendly technologies to address the global obesity epidemic,” Dan Gladney, president, CEO and chairman of the board at EnteroMedics, said in the release. “The acquisition of the ReShape Dual Weight Loss Balloon, which complements our existing products with a nonsurgical weight loss solution, expands our addressable market and gives us yet another touch point along the continuum of care in obesity.”

Under the terms of the agreement, EnteroMedics will receive 2,356,729 shares of common stock, 187,772 shares of series C convertible preferred stock and approximately $5 million in cash, which will be used to pay ReShape Medical’s outstanding indebtedness and certain expenses of ReShape Medical, per the release. EnteroMedics will hold a meeting with stockholders by the end of 2017 to seek the approval of the conversion of the series C convertible preferred stock into shares of common stock, per the release.

Disclosures: Gladney is employed at EnteroMedics.