ReShape Lifesciences Stock Soars On Distribution Agreement With Recon Supply, Draws Retail Applause
Synopsis
Under the distribution agreement, Recon Supply will distribute ReShape’s portfolio across the Veterans Administration and Department of Defense healthcare systems.
Shares of ReShape Lifesciences ( RSLS) jumped 34% by Thursday afternoon after the company announced the signing of an exclusive U.S. distribution agreement with medical technology distributor Recon Supply.
ReShape Lifesciences is a weight loss and metabolic health solutions company, and offers a range of products and services that manage and treat obesity and metabolic disease.
Under the distribution agreement, Recon Supply, a service-disabled veteran-owned small business, will distribute ReShape’s portfolio across the Veterans Administration (VA) and Department of Defense (DoD) healthcare systems.
While the FDA-cleared STIMEL-03 can help veterans and military personnel recovering from stroke, injury, or surgery, the Lap-Band 2.0 FLEX can help individuals struggling with obesity, ReShape Lifesciences CEO Paul F. Hickey said.
RSLS stock slumped on Monday after the company announced the pricing of its public offering of over one million shares of common stock at $2.50 per share.
A Stocktwits user opined that the company's stock would have skyrocketed had it not been for the recent dilution.
In July 2024, ReShape Lifesciences entered into a definitive merger agreement with India’s Vyome Therapeutics, Inc., under which ReShape and Vyome will combine in an all-stock transaction.
On closure, ReShape will be renamed Vyome Holdings, Inc. and expects to trade under the Nasdaq ticker symbol "HIND."
On Stocktwits, retail sentiment around ReShape LifeSciences jumped from ‘bearish’ to ‘bullish’ territory over the past 24 hours while message volume rose from ‘low’ to ‘high’ levels.
RSLS stock is down by about 97% this year and has wiped out nearly all of its market cap over the past 12 months.
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