ReShape Lifesciences (RSLS, Financial) has announced a strategic workforce reduction as part of a broader effort to streamline operations and reinforce its fiscal position. The company has also provided updates on its merger with Vyome Therapeutics and an asset purchase agreement with Biorad Medisys.
The CEO of ReShape Lifesciences, Paul Hickey, explained that despite the promising impact of GLP-1 receptor agonists such as Ozempic and Zepbound on obesity treatments, a thorough review led to the decision to cut staff. This move is expected to save over $750,000 annually, equating to roughly 23% of the company's wage expenses, allowing the firm to operate more efficiently while maintaining its core strengths. Notably, their sales and marketing team remains intact, focusing on generating patient leads through digital marketing and expanding internationally in Canada with Liaison Medical for launching the Lap-Band 2.0 FLEX.
The merger with Vyome Therapeutics and the asset sale to Biorad Medisys are progressing toward completion. A special shareholder meeting to approve these transactions is scheduled for July 24, 2025. The board has expressed unanimous support, viewing these moves as pivotal for unlocking long-term shareholder value and accelerating growth.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Reshape Lifesciences Inc (RSLS, Financial) is $1.00 with a high estimate of $1.00 and a low estimate of $1.00. The average target implies an downside of 59.35% from the current price of $2.46. More detailed estimate data can be found on the Reshape Lifesciences Inc (RSLS) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Reshape Lifesciences Inc's (RSLS, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
