GI Dynamics recruiting for EndoBarrier utility trial

GI Dynamics (ASX:GID) has started enrolling patients for a clinical utility study of EndoBarrier Therapy in obesity and type 2 diabetes and revealed it recorded revenue growth in the June quarter.

The first patients for the randomised trial were recruited late last month. The study is being conducted at 10 centres in France and will seek to enrol around 174 obese patients both with and without diabetes.

The trial will evaluate the impact and cost of 12 months’ treatment with EndoBarrier in comparison to 12 months of conventional treatment. It is expected to complete in 2016.

EndoBarrier is a flexible liner designed to be inserted endoscopically and act as a barrier between food and a portion of the intestinal wall. Its mechanism of action is similar to that of a gastric bypass, but EndoBarrier is easily removable and does not require surgery.

GI Dynamics separately revealed it grew its revenue for the June quarter to US$800,000 ($861,000), from US$300,000 a year earlier. But as previously predicted, revenue fell by a modest US$100,000 from the previous quarter.

Revenue from Australia grew 77% year on year to $159,000, while German revenue was up 60% to $303,000. The company also booked its first revenue from the Netherlands, after securing preliminary reimbursement coverage in March.

But due to increased R&D and sales and marketing expenses, GI Dynamics’ net loss grew to US$12.3 million, from a US$9.6 million loss a year earlier.

GI Dynamics (ASX:GID) shares were trading 2.44% higher at $0.42 as of around 2 pm on Monday.