Obalon Therapeutics has executed a consulting agreement with Blue Ox Healthcare Partners, a private equity firm focused on commercial-ready companies bringing technology enabled innovation to healthcare, especially those involved in precision health, healthcare delivery and affordability.
The agreement calls for Blue Ox to provide consulting services to Obalon, including helping Obalon to develop and implement an effective coverage and reimbursement-based go-to-market strategy. Activities will include an evaluation of the current clinical evidence of the Obalon Balloon System, consideration of health economic studies to define cost of care reductions for patients with diabetes and hypertension resulting from its use, and assessments and readying of strategies for successful commercialization with managed care companies and risk-based providers.
“The clinical literature shows that weight loss can result in diabetes remission in correctly selected patient populations,” said Dr Charles Kennedy, Managing Partner and CEO of Blue Ox. “The Obalon weight loss solution has completed sufficient clinical trials to prove safety and effectiveness. We are excited to work with Obalon to help combat obesity and diabetes and show health plans and value-based providers the patient outcomes and economic gains that can result.”
Obalon continued to reiterate that obtaining reimbursement is never certain and can take many years to achieve, and if achieved, may not be determinative of the company’s success. If initial efforts with payers begin to bear success, Obalon would expect to need to raise additional capital to support those efforts.