ReShape Lifesciences receives Australian patent for diabetes device

IRVINE, Calif. - ReShape Lifesciences (NASDAQ:RSLS), a medical device company with annual revenues of $7.17 million, has been granted an Australian patent for its Diabetes Neuromodulation technology, the company announced Wednesday. According to InvestingPro data, the company maintains a stronger cash position than debt on its balance sheet, though its overall financial health score indicates challenges ahead.

The patent, which provides protection until April 2039, covers a system that uses vagus nerve stimulation and blocking technology to treat Type 2 diabetes.

The technology delivers programmed electrical signals through implanted electrodes and a pulse generator that communicates with external devices and glucose monitors. The system can dynamically adjust therapy based on real-time glucose levels.

"Our Diabetes Neuromodulation system offers a novel approach by using targeted bioelectronic modulation of vagal and related nerves to manage glucose regulation," said Jonathan Waataja, Director of Research at ReShape Lifesciences, according to the press release.

Paul F. Hickey, President and CEO of ReShape Lifesciences, described the patent as "a major milestone" that strengthens the company’s international intellectual property position.

The technology is designed to personalize diabetes treatment by tailoring therapy to individual patient needs. Preclinical studies in animal models have shown effective glycemic control using this system.

The company’s Diabetes Neuromodulation technology is supported by 63 issued or pending patents covering areas such as vagal neuromodulation, glucose regulation, artificial intelligence, and Bluetooth-enabled applications.

ReShape Lifesciences has previously announced an agreement to sell substantially all of its assets, including the Diabetes Neuromodulation system, to Biorad Medisys, Pvt. Ltd. With a gross profit margin of 63.74% in the last twelve months, the company’s fundamentals present an interesting case for investors. For deeper insights into ReShape Lifesciences’ valuation and 12 additional ProTips, visit InvestingPro, where you’ll find comprehensive analysis in our Pro Research Report.

In other recent news, ReShape Lifesciences has successfully increased its stockholders’ equity above the $2.5 million minimum required for continued listing on The Nasdaq Capital Market. This development follows two stock offerings that raised approximately $6.28 million, helping the company address a previous delisting notice from Nasdaq. Additionally, ReShape Lifesciences has entered an exclusive U.S. distribution agreement with Recon Supply to distribute its medical devices across Veterans Administration and Department of Defense healthcare systems. This agreement will allow ReShape’s products to reach over 18 million U.S. veterans and active military personnel.

Moreover, ReShape Lifesciences announced the pricing of a public stock offering, with 1,054,604 shares priced at $2.50 each, aiming to raise about $2.63 million. The offering is part of a larger at-the-market public offering, with Maxim Group LLC as the sole placement agent. In regulatory news, ReShape Lifesciences achieved certification of its Quality Management System and medical device portfolio under the EU Medical Device Regulation and UK Conformity Assessment. This certification ensures the company’s continued ability to sell its products in Europe and the UK. These developments reflect ReShape Lifesciences’ strategic efforts to strengthen its financial position and expand its market presence.

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