And I bet when pacemakers were first introduced there were a massive number of "sky is falling" types who said that no one would allow a mechanical device to be inserted inside of them even if the device was needed to keep them alive.
One of three things is going to happen:
1) A buyout is going to be announced in the very near future and prices greater than today's price.
2) The product will start to sell and the earnings will start to roll in. Revenues/earnings will be positive and growing. whether or not insurers decide to cover the product is irrelevant. It will still sell even without coverage. The stock price will follow upwards.
3) Management may issue a small secondary share offering to help the commercialization process costs. The product will then start to sell and the earnings will start to roll in, whether or not insurers decide to cover the product is irrelevant. It will still sell even without coverage. The stock price will follow upwards.
The FDA would not have approved this product if it wasn't highly needed/viable, nor would they have approved it if management were a bunch of idiots.
Kevin Douglas is long ETRM and he is one of the greatest investors of all time (bought Monster stock before it went on a 50x run).
Long and strong.
This may have something to do with why more accumulation hasn't taken place. A stock must close above $2.00 for a week straight for mutual funds/ETFs to be able to accumulate them per their prospectuses.
At $15K per device (that’s competitive with comparable surgery options) they need just 2,000 procedures a year worldwide (USA+Europe+Australia) to have the same revenues of NVRO (30 Million a year) which is trading at about 1 Billion cap, 10 times the current ETRM's cap. 2,000 procedures a year would be less than 1% of all those who opt for gastric bypass annually.
They have 90% margin gain on the product, which is huge.
Moreover Maestro is likely to get insurance reimbursement because it fills an important gap, according to Chris Lewis, an analyst at Roth Capital Partners.
So the 2k procedures / year worldwide seems like a very conservative target.
Target at least $7 (very conservative compared to NVRO).
First FDA approval for anti-obesity device in the last seven years.
300,000 people a year get their stomachs sawed open to have gastric bypass, to which many of them have to s*** in a colostomy bag for months afterwards. This FDA approval means that nearly all of these people are now eligible for a product that can prevent that from needing to happen.
Posted by Stephan Byrd on Jan 14th, 2015 // No Comments
Equities research analysts at Canaccord Genuity set a $4.00 price objective on shares of EnteroMedics (NASDAQ:ETRM) stock in a research note issued to investors on Wednesday. The firm currently has a a “buy” rating on the stock. Canaccord Genuity’s price target points to a potential upside of 185.71% from the stock’s previous close.
EnteroMedics (NASDAQ:ETRM) last issued its quarterly earnings data on Wednesday, November 12th. The company reported ($0.08) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.10) by $0.02. During the same quarter in the previous year, the company posted ($0.11) earnings per share.
EnteroMedics Inc (NASDAQ:ETRM) is a development- stage medical device company.
There is a very popular biotech message board on investorshub. The founder has a ton of followers and he recommended ETRM last week to his followers. Most of those people woke up to 70% gains this morning and I suspect much of the selling pressure came from them cashing out on the quickest money most of them will ever see in their lifetimes.
300,000 people are willing have their stomach's sawed open and stapled shut, after which many have to s*** in a colostomy bag for months after.
Yeah I think many will take a pacemaker like device inside themselves.
We are going a lot higher folks. This product has been approved by FDA.
Took a look at the Yahoo message board for Celgene in April 2001 when the stock bottomed at $1.90 per share on a split adjusted basis. So much negativity was abounding there during that time. 13.5 years later and people who bought then would have made 60x their initial investment. Wow.
MDT paid about $350 millions (260+royalties) for Transneuronix 10 years ago for its device that didn't even work and failed miserably its trial. Results were so bad that they didn't even ask for FDA approval.
Now you have:
* Much much better efficacy and safety
* FDA approval (if it's approved and the buyout comes out after the approval)
* 10 years of inflation
* Obesity rate much higher than 10 years ago
* Worldwide rights (I don't know if Transneuronix had ww rights too)
So what do the 350 millions become ? I think 500 at the very least, probably more ($7 a share or more)
December 15, 2014 2:12 PM EDT by Editor Ben Mahaney in Exclusively Published • Healthcare • Insights • Most Popular
In a research report published today, Roth Capital analyst Chris Lewis maintained a Buy rating on Enteromedics (NASDAQ:ETRM) with a $3.00 price target, which implies an upside of 114% from current levels.
Lewis observed, “We continue to have confidence, based on the positive risk/reward FDA advisory panel vote (6:2:1) and reassuring ongoing dialogue between the company and the FDA, that ETRM is likely to receive FDA approval over the coming weeks.”
The analyst added, “We view ETRM’s risk-reward as favorable at current levels given our confidence in ETRM’s FDA approval likelihood, and expect an approval announcement to be a meaningful near-term catalyst for the stock.”