Obalon Therapeutics Inc. (OBLN) stock gained by 2.9% at the last trading close while the OBLN stock price kept on rising by 16.94% in the pre-market trading session. Obalon Therapeutics is a San Diego-based company that specializes in the development and commercialization of innovative weight-loss technologies.
Recent Important Events
On April 17, 2021, it was being announced that WeissLaw LLP is reviewing alleged violations of fiduciary responsibility and other legal irregularities by Obalon Therapeutics’ board of directors in conjunction with OBLN’s planned merger with ReShape Lifesciences Inc. ReShape will purchase OBLN in an all-stock deal under the terms of the merger agreement, and OBLN will be renamed ReShape Lifesciences Inc.
Financial Results
Around a month back, OBLN announced its financial results for the fourth quarter and full-year 2020. Given below is the summary.
Fourth Quarter 2020
- OBLN’s revenue for the fourth quarter of 2020 was $0.1 million, whereas for the fourth quarter 2019 the revenue was $0.8 million with the decrease primarily due to the suspension of operations in the second quarter of 2020.
- Net loss for the fourth quarter of 2020 was $1.3 million, compared to $4.9 million for the fourth quarter of 2019. Net loss per share for the fourth quarter of 2020 was $0.17, compared to $0.64 for the fourth quarter of 2019.
- In the fourth quarter of 2020, research and development costs were $0.2 million, decreasing from $1.5 million in the fourth quarter of 2019.
- In the fourth quarter of 2020, selling, general, and administrative expenses fell to $1.2 million, relative to $3.6 million in the fourth quarter of 2019.
Full year 2020
- OBLN’s revenue for the full year of 2020 was $1.6 million, compared to $3.3 million for the full year of 2019, with the decrease primarily due to the suspension of operations in the second quarter of 2020. Net loss for the full year of 2020 was $12.3 million, compared to $23.7 million for the full year of 2019. Net loss per share for the full year of 2020 was $1.59, compared to $5.03 for the full year of 2019.
- The total cost of research and development for the full year of 2020 was $2.5 million, down from $6.9 million in the previous year.
- For the full year of 2020, selling, general, and administrative expenses fell to $8.8 million, down from $16.7 million in 2019.
- The operating loss for the full year of 2020 was $12.0 million, compared to $23.2 million in the previous year.
