ReShape Lifesciences announces merger progress

ReShape Lifesciences Inc. (NASDAQ:RSLS), a pharmaceutical preparations company with a current market capitalization of $2.15 million and trailing twelve-month revenue of $7.17 million, has filed an 8-K with the Securities and Exchange Commission (SEC) on Wednesday, providing updates on its ongoing merger with Vyome Therapeutics, Inc. The merger, previously announced on July 8, 2024, is pending approval from Nasdaq for a new listing application for the combined entity.

The 8-K filing includes financial statements for Vyome for the quarter ending March 31, 2025, and management’s discussion and analysis of financial condition and results of operations for Vyome for the same quarter, as well as for the year ended December 31, 2024. Additionally, the filing contains the company’s management’s discussion and analysis for the year ended December 31, 2024, and unaudited pro forma condensed combined financial statements to reflect the merger.

These documents have been provided to support the incorporation of this information into ReShape Lifesciences’ shelf registration statement on Form S-3, filed with the SEC on May 9, 2025. The merger, subject to customary closing conditions, including Nasdaq’s approval, will see Vyome surviving as a subsidiary of ReShape Lifesciences. According to InvestingPro data, ReShape currently maintains a healthy gross profit margin of 63.74%, though the company’s overall financial health score is rated as weak.

The filing further solidifies the merger process between ReShape Lifesciences and Vyome, indicating the companies are moving closer to completing the transaction. The merger is anticipated to create a combined company with a more robust product pipeline and expanded capabilities in the pharmaceutical sector.

Investors and stakeholders are advised to review the financial statements and management’s discussion and analysis included in the 8-K filing for a comprehensive understanding of the financial health and future outlook of the merging entities. The information is based on a press release statement from ReShape Lifesciences. For deeper insights into ReShape’s financial metrics and future prospects, InvestingPro subscribers can access comprehensive analysis, including 12 additional ProTips and detailed financial health scores that help evaluate merger implications.

In other recent news, ReShape Lifesciences has announced a reverse stock split at a ratio of 1-for-25, consolidating every 25 shares of existing common stock into one share. This corporate action, approved by shareholders, will also adjust the terms of the company’s outstanding warrants, stock options, and convertible preferred stock. Additionally, ReShape Lifesciences has been granted a Notice of Allowance for a new patent related to its intragastric balloon system, enhancing its intellectual property portfolio. The company is also moving forward with its Diabetes Neuromodulation technology, receiving a patent for a system that promises a novel approach to treating Type 2 diabetes and hypoglycemia.

Furthermore, ReShape Lifesciences has renegotiated terms with Ninjour Health International Limited, reducing the exercise price of an asset purchase from $5.16 million to $2.25 million and extending the potential termination date to June 30, 2025. The company has also entered into an asset purchase agreement with Biorad Medisys, Pvt. Ltd., to sell substantially all of its assets, including the Lap-Band System and Obalon Gastric Balloon System. ReShape Lifesciences presented pre-clinical data on its Diabetes Neuromodulation device, showing it can modulate blood glucose without cardiac side effects, a significant advancement in diabetes management. These developments reflect ReShape Lifesciences’ ongoing efforts to innovate in metabolic health solutions and adapt to changing market conditions.

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