ReShape Lifesciences Inc. (RSLS)
At close: 0.1739+0.0056 (+3.33%)
Pre-Market: 0.1999 +0.026 (+14.95%)
2024 Operating Expenses Expected to Decrease by 55.4% Compared to 2023
Company Reaffirms Commitment to Profitability
High Priority Search for Synergistic M&A Partner Continues
Company has no debt
IRVINE, Calif., March 04, 2024 (GLOBE NEWSWIRE) -- ReShape Lifesciences® (Nasdaq: RSLS), the premier physician-led weight loss and metabolic health solutions company, today announced a 2024 cost reduction plan and reorganization to prioritize the commercialization of the company’s next generation, enhanced Lap-Band® 2.0 FLEX. Full implementation of the plan is expected to result in lower operating expenses of approximately $7.9 million in 2024 compared to $17.7 million in 2023, a 55.4% reduction, excluding one-time costs.
“ReShape remains committed to delivering shareholder value and, ultimately, profitability. Our continued focus on restructuring is intended to ensure the long-term sustainability and scalability of the Company,” stated Paul F. Hickey, President and Chief Executive Officer of ReShape Lifesciences. “As we considered the impact of GLP-1 prescriptions for weight loss treatment, which has put pressure on the bariatric industry, it was necessary to take a hard look at our operations and make significant cost reductions including a further reduction in staff, leading to a projected 55.4% decrease in operating expenses for 2024, compared to last year. This reorganization and decrease in expenses will allow us to focus on and optimize the commercialization of our physician-led redesigned Lap-Band® 2.0 FLEX, designed to improve the patient experience, which is currently in the early launch stage.
“At the same time, we continue our high priority search for synergistic M&A opportunities and, as previously reported, have engaged Maxim Group LLC, on an exclusive basis, to assist in this process. Finding the right partner will be key to the long-term success of ReShape Lifesciences. We look forward to providing further updates during our year end 2024 earnings call, later this month,” concluded Mr. Hickey.
About ReShape Lifesciences®
ReShape Lifesciences® is America’s premier weight loss and metabolic health-solutions company, offering an integrated portfolio of proven products and services that manage and treat obesity and metabolic disease. The FDA-approved Lap-Band® System provides minimally invasive, long-term treatment of obesity and is an alternative to more invasive surgical stapling procedures such as the gastric bypass or sleeve gastrectomy. The investigational Diabetes Bloc-Stim Neuromodulation™ (DBSN™) system utilizes a proprietary vagus nerve block and stimulation technology platform for the treatment of Type 2 diabetes and metabolic disorders. The Obalon® balloon technology is a non-surgical, swallowable, gas-filled intra-gastric balloon that is designed to provide long-lasting weight loss. For more information, please visit www.reshapelifesciences.com.
