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IRVINE, Calif. - ReShape Lifesciences Inc. (NASDAQ:RSLS), a micro-cap medical device company with a market capitalization of approximately $5.9 million, announced a strategic workforce reduction expected to save over $750,000 annually, representing approximately 23% of its wage expenses, according to a company press release. According to InvestingPro data, the company maintains a stronger balance sheet than many peers, holding more cash than debt.
The weight loss solutions provider stated that its sales and marketing team will remain intact as the company continues its digital marketing campaigns and international expansion efforts in Canada through its distribution agreement with Liaison Medical for the Lap-Band 2.0 FLEX.
ReShape also reported progress toward finalizing its previously announced merger agreement with Vyome Therapeutics and an asset sale to Biorad Medisys. A special shareholder meeting to vote on these transactions has been scheduled for July 24, 2025.
"This action positions us to operate more efficiently while preserving our core capabilities," said Paul F. Hickey, President and Chief Executive Officer of ReShape Lifesciences, in the press release.
The company indicated that its board of directors has unanimously endorsed the merger and asset sale, describing them as a "transformative opportunity" that could potentially create long-term value for shareholders.
ReShape Lifesciences describes itself as a provider of weight loss and metabolic health solutions, with products including the FDA-approved Lap-Band System, an investigational vagal neuromodulation system, and the Obalon balloon technology.
The announcement comes as the company continues to navigate a market influenced by GLP-1 receptor agonists like Ozempic and Zepbound, which ReShape acknowledged in its statement as having a potential "positive long-term impact on the broader obesity treatment landscape."
In other recent news, ReShape Lifesciences has made several notable announcements. The company revealed its Diabetes Neuromodulation technology has been granted an Australian patent, extending protection until April 2039. This technology uses vagus nerve stimulation to manage glucose levels in Type 2 diabetes patients. Additionally, ReShape has increased its stockholders’ equity above the Nasdaq minimum requirement by raising approximately $6.28 million through recent stock offerings. Despite this increase, the company has requested a hearing to address a previous delisting notice from Nasdaq. In a strategic move, ReShape has signed an exclusive U.S. distribution agreement with Recon Supply, which will distribute its medical devices across Veterans Administration and Department of Defense healthcare systems. Furthermore, ReShape announced the pricing of a public stock offering at $2.50 per share, aiming to raise about $2.6 million before expenses. This offering is part of a larger at-the-market public offering, with Maxim Group LLC acting as the placement agent. The company continues to focus on its strategic efforts to raise capital and expand its market reach.
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