Obalon Therapeutics’ stock skyrockets after announcing ReShape Lifesciences merger

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 …

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