ReShape Lifesciences Inc. (Nasdaq: RSLS), America's premier weight loss and metabolic health-solutions company, has reported financial results for the first quarter ended March 31, 2025, while providing updates on its pending merger with Vyome Therapeutics and asset sale to Biorad Medisys.
Financial Performance Reflects Market Challenges
ReShape reported revenue of $1.1 million for Q1 2025, representing a 42.7% decrease compared to the same period in 2024. The company attributed this decline primarily to reduced sales volume due to competition from GLP-1 pharmaceutical weight-loss alternatives and a temporary pause in direct-to-consumer marketing programs.
Despite the revenue contraction, the company maintained a gross profit margin of 61.2%, slightly improved from 59.9% in the prior year period, due to reductions in overhead-related costs, particularly payroll. Operating expenses decreased across all categories, with sales and marketing expenses down 48.1% to $0.5 million, general and administrative expenses reduced by 13.1% to $1.6 million, and research and development expenses decreased by 24.8% to $0.4 million.
The company reported cash and cash equivalents of $2.6 million as of March 31, 2025, bolstered by the successful completion of a $6.0 million public offering in February 2025.
Strategic Merger and Asset Sale Progress
In July 2024, ReShape entered into a definitive merger agreement with Vyome Therapeutics, under which the companies will combine in an all-stock transaction. Upon closing, ReShape will be renamed Vyome Holdings, Inc. and is expected to trade under the Nasdaq ticker symbol "HIND," representing the company's alignment with the U.S.-India relationship.
"We are making continued progress toward finalizing our merger with Vyome and the asset sale to Biorad Medisys. The S-4 was recently declared effective and we are working to set the record date in the near future," stated Paul F. Hickey, President and Chief Executive Officer of ReShape Lifesciences. "Our Board unanimously supports this transformative transaction, which we believe will unlock long-term value for shareholders and drive accelerated growth for the newly combined company."
Simultaneously with the merger agreement, ReShape entered into an asset purchase agreement with Biorad Medisys, which was amended on April 25, 2025. Under this agreement, ReShape will sell substantially all of its assets to Biorad, including the Lap-Band® System, Obalon® Gastric Balloon System, and the Diabetes Bloc-Stim Neuromodulation™ (DBSN™) System, while Biorad will assume substantially all of ReShape's liabilities.
Expanding Product Portfolio and Market Reach
Despite financial challenges, ReShape continued to expand access to its portfolio of physician-led, minimally invasive weight-loss solutions. In February 2025, the company signed a distribution agreement with Liaison Medical to launch its enhanced Lap-Band® 2.0 FLEX in the Canadian market, following Health Canada approval in late 2024.
"This partnership is a significant milestone in delivering effective, less-invasive alternatives to bariatric surgery to a broader global patient base," Hickey noted.
The company also expanded its product portfolio through an exclusive U.S. distribution agreement with Motion Informatics for their next-generation neuromuscular rehabilitation devices. The flagship product, Stimel-03, was showcased at the American Occupational Therapy Association 2025 Annual Conference and Expo in April.
Strengthening Intellectual Property Position
ReShape made significant strides in strengthening its intellectual property portfolio during the quarter. The company received multiple Notices of Allowance from the U.S. Patent and Trademark Office (USPTO) for its Diabetes Neuromodulation system, which leverages proprietary vagus nerve block (vBloc™) technology along with vagus nerve stimulation to treat Type 2 diabetes.
In February 2025, ReShape was granted a key international patent from the State of Israel Patent Office for its Diabetes Neuromodulation technology, providing protection until December 2039. Additionally, in April 2025, the company received a Notice of Allowance for its intragastric device patent, covering a next-generation, self-deflating, swallowable balloon system.
"These patents extend our intellectual property coverage through at least 2039, underscoring our leadership in addressing both Type 1 and Type 2 diabetes through neuromodulation and its close association with obesity," Hickey explained.
Advancing Diabetes Innovation
In May 2025, ReShape presented pre-clinical data on its proprietary Diabetes Neuromodulation device at the 12th Annual Minnesota Neuromodulation Symposium. Jonathan J. Waataja, Ph.D., Director of Research at ReShape Lifesciences, presented data in a poster entitled "Stimulation of the Posterior Sub-Diaphragmatic Vagal Trunk Reverses Insulin-Induced Severe Hypoglycemia in a Swine Model of Type 1 Diabetes Mellitus."
This presentation showcased the potential of the company's proprietary vagus neuromodulation technology platform in addressing diabetes, a prominent disorder linked with obesity.
Corporate Actions
In May 2025, ReShape effected a 1-for-25 reverse stock split of the company's common stock, which became effective for trading purposes on May 9, 2025. This move is part of the company's strategy to maintain Nasdaq listing requirements and position itself for the pending merger with Vyome.
As the company moves forward with its strategic initiatives, management remains focused on protecting its intellectual property position and, when appropriate, pursuing strategic, non-dilutive funding to support its objectives.
"The first quarter of 2025 and the months that followed have marked a period of strong momentum for ReShape, both operationally and strategically," Hickey concluded. "We remain committed to our mission of providing innovative solutions for weight loss and metabolic health while positioning the company for long-term success through strategic partnerships and transactions."
