In a research note issued today, Roth Capital analyst Chris Lewis reiterated a Buy rating and boosted his price target on EnteroMedics Inc. (ETRM) to $5.00 (from $3.00) following FDA’s Gastroenterology-Urology Device Advisory Panel, which voted that the benefits of ETRM’s Maestro System outweigh the risks by a margin of 6 to 2 (1 abstention). On safety, the panel voted 8 to 1 in favor of ETRM, and on efficacy, the vote was 4 to 5 against ETRM.
“The panel reaffirmed our thesis that ETRM offers a less invasive and safer, yet effective, treatment for the large and under-treated obese population. Many of the physician panelists labeled the Maestro System as a much needed “tool in the toolbox” to address a large gap within the obesity treatment paradigm. Maestro’s proven safety profile and lack of required anatomic changes, particularly versus the current bariatric surgical options (or lack thereof), supported the device’s favorable risk-benefit profile throughout the panel. At this point, we have maintained our current financial projections as we wait for the potential FDA approval. |