EnteroMedics Inc. (EnteroMedics) has implemented a plan to reduce its workforce and operating costs in order to preserve capital and streamline its operations following the announcement of top-line results from its pivotal EMPOWER study on October 2, 2009. The reduction in force will lower the number of employees by 40%, to a total of 33, by November 15, 2009.

The reduction in force is expected to result in approximately $3.2 million in reduced operating expenses in 2010. The company expects to incur a charge of approximately $0.5 million related to the workforce reduction in the fourth quarter of 2009. Individuals subject to the reduction have been offered severance agreements.

“This initiative, while difficult, is necessary to ensure that we have the resources in place to support our ongoing clinical trials and that the Company remains well-equipped to provide support for these studies as we continue our evaluation of the one year data from the EMPOWER trial and formulate our plan for VBLOC Therapy,” said president and chief executive officer Mark B. Knudson, Ph.D. “We thank all of our employees for their hard work on behalf of EnteroMedics and wish those leaving the Company all the best.”

EnteroMedics is a development stage medical device company focused on the design and development of devices that use neuroblocking technology to treat obesity and other gastrointestinal disorders.