Devices & Diagnostics

Stealth-mode weight loss firm raises $1.5M for artificial fullness device

A quiet startup targeting the $14.6 billion obesity treatment device market has secured $1.5 million […]

A quiet startup targeting the $14.6 billion obesity treatment device market has secured $1.5 million from two investors, according to a U.S. Securities and Exchange Commission filing.

Obalon Therapeutics Inc. is developing a gastrointestinal space-occupying device to promote weight loss in people who are overweight or obese.

In September, the company completed a 60-day observational pilot study to evaluate the device as a weight loss aid for otherwise healthy overweight individuals who failed routine dieting. Another 30-day study is ongoing, according to clinicaltrials.gov.

Currently the market for obesity treatment devices is dominated by restrictive devices like Allergan’s Lap-Band, but over the next few years, a more segmented market is expected to emerge that will follow the anticipated approval of more artificial fullness devices (such as EnteroMedics’ vagus nerve-blocking therapy), malabsorption devices (including GI Dynamics’ EndoBarrier) and gastric emptying devices.

Founded in 2008, Obalon has received prior investments from Domain Associates, Phagia Technology Inc. and Okapi Venture Capital in a series A in 2008.

The filing lists Andrew Rasdal, former CEO of DexCom Inc. and former senior vice president at Medtronic, as the company’s president.

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