OBLN Stock: Over 7% Increase Intraday Explanation

By Amit Chowdhry ● May 12, 2021
  • The stock price of Obalon Therapeutics Inc (NASDAQ: OBLN) increased by over 7% during intraday trading. This is why it happened.

The stock price of Obalon Therapeutics Inc (NASDAQ: OBLN) – a vertically integrated medical technology company with the first and only FDA-approved swallowable and gas-filled intragastric balloon system for the treatment of obesity – increased by over 7% during intraday trading.

Investors appear to be responding positively to the company announcing its financial results for the first quarter ended March 31, 2021. Also note: On January 19, 2020, the company signed a definitive agreement for a merger with ReShape Lifesciences.

Financial Results For Q1 2021:

— Revenue for the first quarter of 2021 was none, compared to $0.8 million for the first quarter of 2020, with the decrease primarily due to the suspension of operations in the second quarter of 2020. 

— Net loss for the first quarter of 2021 was $4.2 million, compared to $5.3 million for the first quarter of 2020. 

— Net loss per share for the first quarter of 2021 was $0.44, compared to $0.68 for the first quarter of 2020.

— Cost of revenue was none for the first quarter of 2021, down from $0.5 million for the first quarter of 2020. 

— Gross profit for the first quarter of 2021 was none compared to a gross profit of $0.2 million for the first quarter of 2020.

— Research and Development expense for the first quarter of 2021 totaled $0.1 million, down from $1.3 million for the first quarter of 2020. 

— Selling, General and Administrative expense increased to $4.1 million for the first quarter of 2021, compared to $3.9 million for the first quarter of 2020.

— Operating loss for the first quarter of 2021 was $4.2 million, down from a loss of $4.9 million for the first quarter of 2020.

— As of March 31, 2021, the company had cash and cash equivalents of $9.0 million and $0.4 million of debt related to its Payroll Protection Program loan.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.