Obalon Announces Restructuring to Streamline Operations & Cash Use
The Company expects the restructuring to reduce operating expenses in the second quarter of 2019 by approximately 35%, after one-time charges of approximately
Dr. Huang continued, “The swallowable, gas-filled Obalon Balloon System continues to perform very well clinically, and we have seen accounts that commit to making Obalon a priority in their practice achieve strong results. For example, our most productive bariatric practice, which was also the first practice to order Navigation, treated over 80 patients in the first quarter of 2019. We also have the experience of a retail-focused chain being able to generate similar patient volumes. As a result, our new selling model will focus on more centralized customer support and marketing programs intended to drive higher levels of engagement, and may include pilot programs that can be more efficiently scaled if successful, including: the establishment of our own Obalon Balloon Retail Center; a new program rewarding top-performing accounts for increasing focus on and investment in Obalon; and initiatives for use by other medical weight loss specialties.”
Obalon expects to end the first quarter of 2019 with approximately
To the extent that statements contained in this press release are not descriptions of historical facts regarding
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Source: Obalon Therapeutics, Inc.