Implant trials put pressure on GI Dynamics to raise funds
Obesity treatment operator GI Dynamics has warned shareholders it may be forced to raise additional funds as it works to gain regulatory approval to launch its "endo barrier" implant in markets overseas. In particular, the cost of a trial in the US market is estimated at $35 million, while approval to launch is not expected much before 2016-17 at the earliest, which may keep the balance sheet under pressure.
The company is pushing to win government funding for its treatment in markets such as Britain, where progress would pave the way for a quick increase in sales, it told shareholders at Monday's annual meeting.
The company's implant is said to help reduce obesity and assist in reducing the risk of diabetes.
"We continue to look to alternatives to adding cash," chief executive Stuart Randle said.
"Revenues are beginning to ramp up," chairman Jack Meyer said.
GI is also considering making quick inroads in markets such as Brazil.