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A peptic ulcer is a open sore that occurs either in the stomach, in the first part of the small intestine or in the lower esophagus. A peptic ulcer develops due to the effect of excess acid produced in the stomach. It often presents with abdominal pain, nausea, vomiting (coffee colored if it is a bleeding ulcer), bloating, loss of appetite and black tarry stools (in case of bleeding from the ulcer site).