Obalon Announces Consulting Agreement As Part of Strategy To Seek Coverage and Reimbursement for The Obalon Balloon System


SAN DIEGO, Aug. 13, 2020 (GLOBE NEWSWIRE) -- Obalon Therapeutics, Inc. (Nasdaq: OBLN), a weight loss solutions company with the first and only FDA-approved swallowable, gas-filled intragastric balloon system for the treatment of obesity, today announced that it has executed a consulting agreement with Blue Ox Healthcare Partners, LLC, a private equity firm focused on commercial-ready companies bringing technology enabled innovation to healthcare, especially those involved in precision health, healthcare delivery, and affordability.

The agreement calls for Blue Ox to provide consulting services to Obalon, including helping Obalon to develop and implement an effective coverage and reimbursement-based go-to-market strategy. Activities will include an evaluation of the current clinical evidence of the Obalon Balloon System, consideration of health economic studies to define cost of care reductions for patients with diabetes and hypertension resulting from its use, and assessments and readying of strategies for successful commercialization with managed care companies and risk-based providers.

Charles Kennedy, MD, Managing Partner and CEO of Blue Ox, commented, “The clinical literature shows that weight loss can result in diabetes remission in correctly selected patient populations. The Obalon weight loss solution has completed sufficient clinical trials to prove safety and effectiveness. We are excited to work with Obalon to help combat obesity and diabetes and show health plans and value-based providers the patient outcomes and economic gains that can result.”

Obalon continued to reiterate that obtaining reimbursement is never certain and can take many years to achieve, and if achieved, may not be determinative of the Company’s success. If initial efforts with payers begin to bear success, Obalon would expect to need to raise additional capital to support those efforts.

About Obalon Therapeutics, Inc.

Obalon Therapeutics, Inc. (Nasdaq: OBLN) is a San Diego-based company focused on developing and commercializing novel technologies for weight loss. For more information, please visit http://www.obalon.com.

About Blue Ox Healthcare Partners, LLC

Blue Ox Healthcare Partners, LLC is a private equity firm focused on commercial-ready companies bringing technology enabled innovation to healthcare, especially those involved in precision health, healthcare delivery, and affordability. For more information, please visit www.blueoxhcp.com.

Cautionary Statement Regarding Forward Looking Statements

This press release contains forward-looking statements that are not purely historical regarding Obalon’s or its management’s intentions, beliefs, expectations and strategies for the future, including those related to new products and their potential benefits. All forward-looking statements and reasons why results might differ included in this press release are made as of the date of this release, based on information currently available to Obalon, deal with future events, are subject to various risks and uncertainties, and actual results could differ materially from those anticipated in those forward looking statements. The risks and uncertainties that may cause actual results to differ materially from Obalon’s current expectations are more fully described in Obalon’s annual report on Form 10-K for the period ended December 31, 2019, periodic report on Form 10-Q for the period ended June 30, 2020 and its other reports, each as filed with the Securities and Exchange Commission. Except as required by law, Obalon assumes no obligation to update any such forward-looking statement after the date of this report or to conform these forward-looking statements to actual results.

 

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