(By Salman - iStockAnalyst Writer)US stocks retreated on Friday after weaker-than-expected payrolls data fueled fears that the pace of US economic recovery would be slow.
EnteroMedics Inc (NASDAQ:
ETRM): Shares of the company plunged over 75% on Friday after it said that its device, Maestro System, meant for the treatment of obesity, failed to meet the trial's effectiveness goals. The Roseville-based company said in a statement that preliminary results of an efficacy study did not meet primary or secondary endpoints. "The data do appear to show a high placebo effect," said Chief Executive Officer Mark Knudson in a conference call with analysts. "We found that the results were largely indistinguishable between the on and off groups, both groups had an average excess weight loss from implant in the mid-teens," he added. The company said that it plans to undertake a thorough analysis of the study data. "The analysis will help us to determine the most appropriate path forward for the Maestro System in obesity and other possible indications," Knudson said.
CIT Group Inc. (NYSE:
CIT): The embattled commercial lender said late Thursday it launched a debt restructuring program that it hopes will reduce at least $5.7 billion from its balance sheet. The company warned it could file for bankruptcy if it does not achieve the objectives of the exchange offers. The company's proposed debt exchange would give bondholders about 92.5 percent of the firm. Current preferred shareholders would end up owning 5 percent of the company's equity and voting rights, while current stockholders would get 2.5 percent. "We believe this plan maximizes franchise value and can be executed quickly and effectively through a series of voluntary debt exchange offers or an expedited in-court restructuring process," CIT chief executive Jeffrey Peek said in a statement. "Upon completion of either alternative, CIT will be a well-funded bank holding company with a strong capital position and market leading franchises," he added. Shares soared over 16% on Friday.
Pervasive Software (NASDAQ:
PVSW): Late on Thursday, Pervasive Software hiked its fiscal quarter forecast. For the quarter ended Sept. 30, the company now expects adjusted per-share earnings of 7 cents to 8 cents a share on revenue of $11.9 million to $12.2 million, up from its July forecast of 4 cents to 7 cents a share on revenue of $10.5 million to $11.5 million. Further, the company boosted its first quarter revenue guidance to a range of $11.9 million to $12.2 million from the prior guidance of $10.5 million to $11.5 million.
