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IRVINE, Calif. - ReShape Lifesciences (RSLS), a leading company in weight loss and metabolic health solutions currently valued at $4.12 million in market capitalization, has been granted a Notice of Allowance for a new patent by the U.S. Patent and Trademark Office. According to InvestingPro data, the company faces significant challenges with a weak financial health score of 1.47 out of 10. The patent, set to extend into at least January 2031, pertains to an intragastric balloon system designed to be swallowed in capsule form and naturally excreted after deflation.
The innovative system includes a self-sealing fill valve and a degradable release valve, which is intended to deflate after approximately three months following inflation with saline liquid. This development represents a significant enhancement to the company’s intellectual property portfolio, which already includes over 50 patents related to the intragastric balloon system and more than 160 issued and pending patents covering a range of technologies.
Paul F. Hickey, President and CEO of ReShape Lifesciences, emphasized the importance of this milestone in securing broad protection for their intragastric balloon system. The company has been building its patent portfolio since its initial filing in 2011. Hickey also indicated that ReShape Lifesciences will continue to fortify its product portfolio and commercialization efforts, as well as pursue strategic, non-dilutive funding to protect its position. Financial metrics from InvestingPro show the company facing headwinds with negative EBITDA of $6.65 million and revenue decline of 7.74% over the last twelve months.
ReShape Lifesciences is known for its FDA-approved Lap-Band and Obalon balloon technologies, which provide minimally invasive alternatives to surgical weight loss procedures. However, the company has agreed to sell substantially all of its assets, including the Lap-Band System and Obalon Gastric Balloon System, to Biorad Medisys, Pvt. Ltd., with the exception of cash. Following the completion of this transaction, Biorad will own the Obalon Gastric Balloon System.
This press release contains forward-looking statements regarding the Obalon Gastric Balloon System’s promise and potential commercialization, which are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those discussed. With the company’s next earnings report due on May 14, investors seeking deeper insights can access comprehensive analysis and 11 additional ProTips through InvestingPro’s detailed research reports, which transform complex financial data into actionable intelligence for smarter investment decisions.
The information in this article is based on a press release statement from ReShape Lifesciences.
In other recent news, ReShape Lifesciences reported a notable decrease in revenue and gross profit for the fiscal year 2024, with revenue falling by 8% to $8 million. The company attributed this decline to competitive pressures from GLP-1 pharmaceuticals. Despite this, ReShape implemented significant cost reductions, cutting operating costs by 42%, which included reductions in sales, marketing, and R&D expenses. Furthermore, ReShape secured a patent for its Diabetes Neuromodulation technology, a new approach to treating Type 2 diabetes using energy-efficient vagus nerve modulation. This patent is expected to provide protection until 2037, enhancing the company’s intellectual property portfolio. ReShape is also progressing with a merger with Viome Therapeutics and plans an asset sale to BI RADS, which the board unanimously recommended. Additionally, the company announced an exclusive agreement with Motion Informatics to distribute neuromuscular rehabilitation devices, expanding its product portfolio. These developments reflect ReShape’s strategic focus on cost management and product expansion amid financial challenges.
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