ReShape Lifesciences secures patent for diabetes treatment

IRVINE, Calif. - ReShape Lifesciences (NASDAQ:RSLS), a micro-cap medical device company with a market value of $3.49 million specializing in weight loss and metabolic health solutions, has been granted a patent for its Diabetes Neuromodulation technology, which promises to bring a novel approach to treating Type 2 diabetes and hypoglycemia with energy-efficient vagus nerve modulation. According to InvestingPro analysis, the company maintains a healthy gross margin of 63% despite current market challenges.

The U.S. Patent and Trademark Office issued a Notice of Allowance for the patent application, which covers an algorithm that delivers high-frequency, low duty cycle patterns for neural regulation. This technology is expected to use approximately 10 times less energy than existing devices, due to its discontinuous signal pattern with interwoven pauses. The patent will provide protection until August 4, 2037.

Jonathan Waataja, Ph.D., Director of Research at ReShape Lifesciences, explained that the system targets the vagus nerve to regulate blood glucose levels by stimulating insulin production in the pancreas and reducing glucose release from the liver. Preclinical testing has shown that the technology can match the efficacy of continuous signals while being fully compatible with standard implantable pulse generators, facilitating cost-effective development.

President and CEO Paul F. Hickey highlighted the potential of the Diabetes Neuromodulation system to personalize diabetes management, potentially lessening dependence on medications and reducing treatment costs. The technology is part of a robust intellectual property portfolio that includes 63 issued or pending patents across various aspects of metabolic health management. With annual revenues of $8.01 million, ReShape faces significant commercialization challenges, though InvestingPro analysis suggests the stock may be undervalued at its current price of $0.31, trading near its 52-week low.

The ReShape Diabetes Neuromodulation system is designed to be minimally invasive and adjustable, offering a potential future for personalized medicine in treating metabolic disorders. The system’s superiority is claimed over standalone vagus nerve stimulation and invasive ligation methods, which can have irreversible side effects.

ReShape Lifesciences has previously announced an asset purchase agreement with Biorad Medisys, Pvt. Ltd., where ReShape will sell most of its assets, including the newly patented DBSN™ system, to Biorad.

The information presented in this article is based on a press release statement from ReShape Lifesciences and does not constitute an endorsement of the company or its products. For a comprehensive analysis of ReShape Lifesciences’ financial health, growth prospects, and 12+ additional ProTips, visit InvestingPro, where you’ll find detailed research reports and expert insights on over 1,400 US stocks.

In other recent news, ReShape Lifesciences Inc. reported a notable 8% decline in revenue for the fiscal year 2024, bringing total revenue to $8 million. This drop was accompanied by a 9% decrease in gross profit, which now stands at $5.1 million with a gross profit margin of 63.2%. The company has implemented a strategic cost reduction plan, achieving a 42% decrease in operating costs, including significant cuts in sales, marketing, and R&D expenses. Additionally, ReShape is in the process of a merger with Viome Therapeutics and plans a concurrent asset sale to BI RADS. The company recently signed an exclusive agreement with Motion Informatics to distribute neuromuscular rehabilitation devices, marking an expansion of its product portfolio. Analysts have noted the company’s focus on strategic partnerships and cost management as key elements of its current strategy. Despite the revenue challenges, ReShape secured a $6 million public offering in February, aimed at supporting continued growth. The company holds $700,000 in cash and cash equivalents as of the end of 2024, reflecting its ongoing financial management efforts.

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