Obalon Scores Funding on the Heels of Obesity Market Shift

Two new funding deals could give Obalon the added firepower needed for it to more effectively compete in the obesity treatment market. The San Diego-based company said it has garnered $30 million from a stock purchase agreement with Lincoln Park Fund and an At-the-market equity sales agreement with Canaccord Genuity. The agreement with Lincoln Park Fund would net up to $20 million while the firm’s agreement with Canaccord Genuity could help bring in about $10 million. Obalon said it could use the proceeds for sales and marketing costs, clinical studies, research and development costs, manufacturing development, the acquisition or licensing of other businesses or technologies, repayment and refinancing of debt, working capital and capital expenditures. The company has FDA approval for a swallowable intragastric balloon system for the treatment of obesity. MD&M West is where serious professionals find the technologies, education, and connections to stay ahead in the global medical manufacturing community and will be in Anaheim, from Feb. 5-7.  Obalon’s financing comes right on the heels of some pretty remarkable shakeups in the obesity treatment market. Two of the firm’s rivals, ReShape Medical and Apollo EndoSurgery underwent a deal that would allow for a product swap of sorts. In the transaction, Apollo said it would sell its surgical product line, which includes the Lap-Band adjustable gastric ...
Source: MDDI - Category: Medical Devices Authors: Tags: Business Source Type: news