Reshape Lifesciences Inc. Stock Price, News & Analysis

ReShape Lifesciences (RSLS) reported Q1 2025 financial results and provided corporate updates. The company reported revenue of $1.1 million, down 42.7% year-over-year, primarily due to GLP-1 pharmaceutical competition. Key developments include: a 1-for-25 reverse stock split effective May 9, 2025; completion of a $6.0 million public offering; and progress on the pending merger with Vyome Therapeutics and asset sale to Biorad Medisys. The company secured multiple patent allowances for its Diabetes Neuromodulation technology and signed distribution agreements with Motion Informatics and Liaison Medical. Financial metrics show gross profit at $0.7 million with a 61.2% margin, and cash position of $2.6 million as of March 31, 2025.

ReShape Lifesciences (NASDAQ: RSLS) has announced a 1-for-25 reverse stock split of its common stock, effective for trading on May 9, 2025. Following the split, every 25 shares of outstanding common stock will be consolidated into one share. The company will make proportional adjustments to outstanding warrants, stock options, and convertible preferred stock. Any fractional shares will be rounded up to the nearest whole share.

The reverse split was approved by stockholders on April 1, 2025. The company's transfer agent, Equiniti Trust Company, will provide instructions for exchanging existing certificates. The new CUSIP number will be 76090R408. The number of authorized shares under the company's certificate of incorporation will remain unchanged.

ReShape Lifesciences (RSLS) presented pre-clinical data on its Diabetes Neuromodulation device at the Minnesota Neuromodulation Symposium. The device uses Hypoglycemia Vagus Nerve Stimulation (HVNS) to target the sub-diaphragmatic posterior vagus nerve, effectively increasing blood glucose during hypoglycemic episodes without cardiac side effects. In the Type 1 diabetic swine model study, HVNS successfully elevated glucose levels from 45 to 58 mg/dL and 51 to 68 mg/dL in two subjects after 30 minutes, while increasing glucagon levels. The technology demonstrated a clear therapeutic window, with side effects only occurring at current amplitudes above therapeutic levels. This innovation could potentially reduce dependence on injections and wearable glucose monitors for Type 1 and Type 2 diabetes patients.

ReShape Lifesciences (Nasdaq: RSLS) has received a Notice of Allowance from the USPTO for patent application 18/241,151, titled 'Intragastric Device.' The patent covers an innovative intragastric balloon system featuring a swallowable capsule with self-sealing fill valve and degradable release valve.

The system is designed to deflate approximately three months after saline inflation and is configured for natural excretion. The patent will provide protection until at least January 2031, with potential for extension.

Since their initial filing in 2011, the company has secured over 50 patents related to their intragastric balloon system. ReShape currently maintains a portfolio of more than 160 patents issued and pending across various protected technologies.

ReShape Lifesciences (RSLS) has received a USPTO Notice of Allowance for patent application 18/069,689, titled 'High-Frequency Low Duty Cycle Patterns for Neural Regulation', providing protection until August 2037. The patent covers their Diabetes Neuromodulation system which utilizes proprietary vBloc™ technology for treating Type 2 diabetes through vagal nerve modulation.

The technology features an energy-efficient algorithm that uses discontinuous high-frequency signals with interwoven micro- and millisecond pauses, consuming 10 times less energy than traditional continuous signals. Preclinical testing on rat vagus nerves has shown equivalent efficacy while remaining compatible with standard implantable pulse generators.

The company's intellectual property portfolio includes 63 issued or pending patents covering vagal neuromodulation, glucose regulation, artificial intelligence, and Bluetooth-enabled applications.

ReShape Lifesciences (RSLS) has entered an exclusive U.S. distribution agreement with Motion Informatics to import and distribute neuromuscular rehabilitation devices. The partnership's flagship product is the FDA-cleared Stimel-03, which combines Functional Electrical Stimulation, Neuromuscular Electrical Stimulation, and real-time EMG biofeedback in a single platform.

The system is designed for patients recovering from stroke, injury, or surgery, and can be used in both clinical and home settings. Motion Informatics is also developing Spatial StimelMD (SSMD), a next-generation platform that incorporates AI-personalized neuromodulation, EMG biofeedback, and augmented reality for adaptive rehabilitation.

ReShape Lifesciences (NASDAQ: RSLS) reported its financial results for the year ended December 31, 2024, highlighting a significant 41.9% reduction in operating expenses compared to 2023. The company's revenue totaled $8.0 million, showing a 7.7% decrease from 2023, primarily due to GLP-1 pharmaceuticals impact.

Key financial metrics include: gross profit of $5.1 million (63.2% margin), decreased sales and marketing expenses by 60.4% to $3.0 million, reduced general and administrative expenses by 32.9% to $6.9 million, and R&D expenses down 22.1% to $1.8 million.

The company announced a pending merger with Vyome Therapeutics and an asset purchase agreement with Biorad Medisys. Additionally, ReShape secured new patents for its Diabetes Neuromodulation system, signed a Canadian distribution agreement for Lap-Band 2.0 FLEX, and completed a $6.0 million public offering in February 2025.

ReShape Lifesciences (RSLS) has received a Notice of Allowance from the USPTO for patent application 17/046,677, focused on their Diabetes Neuromodulation technology. The patent, valid until April 2039, covers 'Simultaneous Multi-Site Vagus Nerve Modulation for Improved Glycemic Control System and Methods.'

The technology combines vagus nerve block (vBloc™) with vagus nerve stimulation to treat Type 2 diabetes. It aims to reduce medication dependence through personalized glucose control. The system is backed by a robust IP portfolio of 62 issued or pending patents covering vagal neuromodulation, glucose control, AI, and Bluetooth applications.

Pre-clinical development has shown promising results in both Zucker rat and alloxan-treated swine models of Type 2 Diabetes Mellitus (T2DM). The technology works by selectively modulating vagal block and stimulation to the liver and pancreas, potentially offering treatment for both Type 2 diabetes and hypoglycemia.

ReShape Lifesciences (Nasdaq: RSLS) has signed a distribution agreement with Liaison Medical for its next-generation Lap-Band® 2.0 FLEX in Canada, following Health Canada's approval in November 2024. This enhanced weight loss device features innovative FLEX technology that acts as a relief valve when patients swallow large food pieces, potentially eliminating the need for in-office band adjustments.

Paul F. Hickey, ReShape's CEO, noted that initial surgeon feedback from the U.S. market release has been "overwhelmingly positive." Denis Langevin, CEO of Liaison Medical, expressed excitement about the partnership, highlighting his company's position as one of Canada's largest surgical device distributors with established relationships with bariatric surgeons. Langevin believes the improved features of the Lap-Band® 2.0 FLEX will serve as a "growth catalyst" for ReShape Lifesciences.