Obalon Explores Financial and Strategic Alternatives

Obalon Therapeutics said it has retained Cowen as an independent financial advisor to assist in exploring financial and strategic alternatives. The move comes about a week after the San Diego-based company announced a restructuring measure that would see it cut half of its workforce. The obesity-treatment specialist said the bulk of the cuts would come from it eliminating its salesforce and switching to a new sales model. Obalon said with Cowen’s assistance it plans to explore a wide range of financial and strategic alternatives that could enhance stockholder value and enable the company to continue serving other important constituencies, including patients and physicians. In a release the company said, “no assurance can be given as to whether any particular financial or strategic alternative will be recommended or undertaken, and if so, upon what terms and conditions.”The firm added that it doesn’t intend to make any further public announcements regarding its review of possible financial and strategic alternatives until its board has approved a transaction or otherwise determined that further disclosure is appropriate or required by law. The company has developed a swallowable, gas-filled intragastric balloon system to treat obesity. It won a nod from FDA for the technology back in 2016. Obalon had a busy end to 2018, which makes developments this year hard to digest. In December, the company garnered $3...
Source: MDDI - Category: Medical Devices Authors: Tags: Business Source Type: news