Shares of intragastric balloon maker Obalon Therapeutics (NSDQ:OBLN) jumped as high as $10.71 today, or 568%, after the company announced a merger with ReShape Lifesciences (OTCMKTS:RSLS).
The San Diego-based company’s stock eventually closed at $9.52 per share, up 491%.
Obalon’s stock had closed at $1.61 yesterday.
ReShape Lifesciences also saw a substantial jump in its stock price. RSLS shares closed at $9.52 per share, up nearly 138%.
Obalon won FDA-approval for its gas-filled intragastric balloon system for obesity in 2016. It is currently the only company with such a product on the market in the U.S.
The merger with ReShape will allow the balloon system to become part of a portfolio of devices used to treat obesity and metabolic disease, including the Lap-Band adjustable gastric banding system and the ReShapeVest, which is an investigational device for treating obesity.
“We are excited with this opportunity to add Obalon’s …