Why EnteroMedics (ETRM) Stock Is Surging Today

NEW YORK (TheStreet) -- EnteroMedics  (ETRM) surged Wednesday after the medical device developer announced a Food and Drug Administration panel had voted positively on VBLOC vagal blocking therapy for obesity treatment.

The FDA's Advisory Gastroenterology and Urology Devices Panel, or GUDP, voted 8 to 1 in favor that the device is safe when used as designed and 4 to 5 "against" on the subject of reasonable assurance of efficacy. The final vote was 6 to 2 in favor, with one abstention, of VBLOC's benefits outweighing the risks.

The FDA does not have to follow the GUDP's recommendation, but it will factor it in when reviewing the Maestro System Premarket Approval (PMA). EnteroMedics expects a decision on PMA approval later this year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

The stock was up 15.78% to $1.76 at 10:21 a.m. Nearly 11 million shares had changed hands, which beat the average volume of 1,329,210. 

ETRM Price Chart

ETRM Price data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

If you liked this article you might like

Still Struggling to Put Money to Work

This Small-Cap Rotation Is Unconvincing

Bullish and Bearish Reversals in the Market

Stock Picks Are Hard to Find as Small-Caps Struggle

These 5 Stocks Under $10 Could Make You a Lot of Money