Obalon taps Cowen to explore ‘strategic alternatives’

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Obalon TherapeuticsObalon Therapeutics (NSDQ:OBLN) today tapped an advisory firm to explore “strategic alternatives,” a week after revealing plans to cut its workforce in half.

The Carlsbad, Calif.-based company, which makes a gas-filled balloon designed to treat obesity, said April 3 that it would lay off 49 of its 100 employees, including all of its direct sales force, in a pivot toward retail.

Today the company said it hired investment bank Cowen “as an independent financial advisor to assist in exploring financial and strategic alternatives” to explore “a wide range of financial and strategic alternatives.”

“Obalon will proceed in an orderly manner to identify and evaluate possible financial and strategic alternatives for the company and their implications,” Obalon said “No assurance can be given as to whether any particular financial or strategic alternative will be recommended or undertaken, and if so, upon what terms and conditions.”

The company said it plans to stay mum until its board approves a transaction or until a statement is required by law.

OBLN shares, which plunged -21% last week after the restructuring news broke, were off by as much as -11.6% today before rallying to 58¢ apiece today in late-morning activity, down -1.0%.

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