If you are wondering the cause of the incredible 20% rise in EnteroMedics Inc (NASDAQ:ETRM) stock, look no further than a patent notice. The company said that it received an important notice regarding European patent consideration for its vBloc technology.
Intention to grant patent
EnteroMedics Inc (NASDAQ:ETRM) revealed that the European Patent Office informed it of its intention to grant a European patent to vBloc therapy system. Specifically, the European patent will cover safety features of vBloc, a move that should further shield vBloc from competitive pressure and enable EnteroMedics to generate maximum benefits from the product.
The fact that the European Patent Office is considering vBloc for a European patent protection is seen as a vote of confidence in the technology in combating obesity disorders.
EnteroMedics Inc (NASDAQ:ETRM)’s CEO, Dan Gladney, said that the consideration for a European patent points to a strengthening intellectual property portfolio in the neuromodulation device industry. EnteroMedics already boasts more than 70 worldwide patents.
The consideration for a European patent for vBloc comes at a time when EnteroMedics is gearing up to take the product to more international markets. The company is also in the process of broadening reimbursement coverage for the product in the U.S.
The market reaction that saw shares of EnteroMedics jumped more than 20% show that investors positively interpreted the news that vBloc was being considered for a European patent protection.
The sentiment around EnteroMedics Inc (NASDAQ:ETRM)’s vBloc is increasingly growing bullish. A number of experts have pointed out that vBloc is an incredible success when it comes to combating obesity and gastrointestinal disorders.
$11.72 billion revenue opportunity
Investors are keeping a close eye on how vBloc would transform EnteroMedics Inc (NASDAQ:ETRM)’s financial fortunes. It is estimated that neuromodulation market will expand at compound annual growth rate of 13.1% between 2016 and 2022 to hit $11.72 billion by 2022. As such, considering EnteroMedics’ modest revenue of $0.28 million in 2Q2016, there is a massive growth potential for the company in neuromodulation space.