ReShape Lifesciences Ignites Retail Frenzy As Stock Soars On US Patent For Diabetes Neuromodulation System

synopsis

Shares of ReShape Lifesciences Inc. rose over 23% on Monday and extended gains after the bell, driven by the medical device company securing a key patent.

The Irvine, California-based company said it had received a Notice of Allowance from the U.S. Patent and Trademark Office for its patent application titled “High-Frequency Low Duty Cycle Patterns for Neural Regulation.” 

The patent, which will provide protection through August 2037, supports the company’s Diabetes Neuromodulation system.

The technology leverages ReShape’s proprietary vagus nerve block and stimulation platform to regulate blood glucose in patients with Type 2 diabetes by modulating nerve signals to the liver and pancreas. 

The newly patented algorithm delivers short bursts of high-frequency stimulation with micro- and millisecond pauses, offering a more energy-efficient alternative to continuous stimulation. 

ReShape said this innovation uses approximately 10 times less energy than traditional continuous signals, enabling smaller devices and longer battery life. 

The announcement sent 24-hour message volume for ReShape on Stocktwits spiking by more than 7,300% on Monday, with sentiment turning ‘neutral’ from ‘bearish’ a day ago.

RSLS sentiment and message volume as of April 21. | source: Stocktwits

One bullish user posted that ReShape stock "is a long hold for me, $2.5+ target."

Another user acknowledged the day's news but speculated that a "mega-merger run" from ReShape's proposed reverse merger with Vyome Therapeutics was coming.

ReShape’s stock has seen its short interest rise from 4.2% to 6.1% this year, according to Koyfin data.

Shares of the company have lost over 91% of their value this year. 

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