GI Dynamics warns on Q2 revenue

GI Dynamics (ASX:GID) has warned it expects to report a small sequential decline in revenue for the second calendar quarter, due to challenging business conditions in some key markets.

Lower than expected sales of its EndoBarrier therapy in Chile and delayed regulatory approval in Brazil have contributed to the decline, the company said.

EndoBarrier is a non-surgical device therapy for obesity and type 2 diabetes. It is commercially available in Australia, Chile and some Europe and Middle Eastern countries, and is under investigation in the US though a large phase II trial.

GI Dynamics also announced that chief commercial officer Mark C Twyman has left the company effective today.

The company has commenced a search for a president and COO to take on Twyman’s former role and oversee global sales and marketing efforts for EndoBarrier. Until one is found, other members of its senior management team will assume his responsibilities.

“On behalf of the company’s board, I want to thank Mr Twyman for his service to the company and wish him well in his future endeavours,” GI Dynamics CEO Stuart A Randle said.

GI Dynamics (ASX:GID) shares were trading 10.34% lower at $0.52 as of around 12.30 pm on Wednesday.