Shares of Obalon Therapeutics Inc (NASDAQ:OBLN) plunged on Friday after the San Diego medical device company posted first quarter earnings that missed Wall Street analyst expectations by a wide mark.
Obalon shares tanked nearly 32% to US$2.97 on Friday.
For the quarter ended March 31, Obalon Therapeutics posted a loss of US$0.71 per share on revenue of US$1.3mln.
The company missed the consensus estimate number which called for a smaller loss of US$0.54 per share on revenue of US$3.6mln. Revenue fell 8.6% compared to the same quarter a year ago.
“Although first quarter revenues were slower than Q4-17, we were pleased with the underlying metrics as we build a sustainable business. New patient starts, the number of accounts treating, unique website visits and find a doctor searches grew meaningfully and were the highest level ever,” said Obalon Therapeutics CFO Bill Plovanic.
Obalon has the first and only FDA-approved swallowable intragastric balloon-in-a-pill system that helps people struggling to lose weight. The new treatment involves swallowing balloon-filled capsules to curb overeating and gives obese people a chance to lose weight without invasive gastric surgery.