8/7/2018
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`EnteroMedics acquires ReShape Medical in $38m cash-and-stock deal - MassDevice
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`HOME » ENTEROMEDICS ACQUIRES RESHAPE MEDICAL IN $38M CASH-AND-STOCK DEAL
`
`EnteroMedics acquires ReShape
`Medical in $38m cash-and-stock deal
`
`OCTOBER 3, 2017 BY BRAD PERRIELLO — LEAVE A COMMENT
`
`EnteroMedics (NSDQ:ETRM) said today that it acquired ReShape
`Medical in a cash-and-stock deal worth about $38 million.
`
`The deal called for St. Paul, Minn.-based EnteroMedics to pay $5 million
`in cash, plus 2.4 million shares of stock and nearly 188,000 series C convertible shares. At
`yesterday’s closing price of $1.79 per ETRM share, the stock shares would be worth about $4.2
`million, with the convertible shares worth another $33.6 million after conversion to nearly 18.8
`
`https://www.massdevice.com/enteromedics-acquires-reshape-medical-38m-cash-stock-deal/
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`1/10
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`Fulfillium Exhibit 2002, Page 1
`ReShape v. Fulfillium
`Case IPR2018-00958
`
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`8/7/2018
`
`EnteroMedics acquires ReShape Medical in $38m cash-and-stock deal - MassDevice
`million shares; EnteroMedics said it plans to hold a shareholder vote by the end of the year to
`approve the series C conversion.
`
`“We are pleased to announce this significant transaction, which adds a new minimally invasive,
`revenue-generating technology to the EnteroMedics portfolio,” EnteroMedics chairman, president
`& CEO Dan Gladney said in prepared remarks. “The acquisition of the ReShape dual weight loss
`balloon, which complements our existing products with a non-surgical weight loss solution,
`expands our addressable market and gives us yet another touch point along the continuum of care
`in obesity.
`
`“EnteroMedics and ReShape Medical are two innovative companies that share a strong strategic
`focus on providing proprietary, patient-friendly technologies to address the global obesity
`epidemic,” Gladney said. “We look forward to combining the complementary expertise and
`capabilities of both companies for the benefit of our customers, patients, employees and
`stockholders.”
`
`In July 2015, San Clemente, Calif.-based ReShape won pre-market approval from the FDA for its
`dual balloon system, indicated to facilitate weight loss in obese adult patients. The system is
`designed to be inserted endoscopically into the stomach, where it remains for six months to help
`patients feel full. The balloon is meant to be temporary and patients with the device
`undergo supervised diet and exercise plans to maintain weight loss following its removal.
`
`Earlier this year the FDA reiterated a warning about intragastric balloons like ReShape’s and the
`Orbera device made by Apollo Endosurgery (NSDQ:APEN) after receiving five reports of
`“unanticipated” deaths since 2016 in patients treated with the balloons.
`
`News of the deal pushed ETRM shares up as much as 17.3% today to a $2.27 high; the stock was
`trading at $1.97 apiece in mid-morning activity, up 10.1%.
`
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`https://www.massdevice.com/enteromedics-acquires-reshape-medical-38m-cash-stock-deal/
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`2/10
`
`Fulfillium Exhibit 2002, Page 2
`ReShape v. Fulfillium
`Case IPR2018-00958
`
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