Metabolic health solutions and physician led weight loss company ReShape Lifesciences Inc. (NASDAQ:RSLS) has announced completion of Lap-Band manufacturing transition from Apollo Endosurgery, to Massachusetts-based manufacturer. The firm is expecting this to lower costs, improve margins as well as directly control manufacturing process.
The only FDA-approved, laparoscopic weight-loss device, the band is especially useful for obese people having BMI higher than 30 in the US. With over million times procedure being performed since 1993, it is proven to be a safe procedure demonstrating lower complication as well as mortality rates vis-à-vis other surgical weight-loss procedures
Bart Randy, President and CEO at the company, said that production of the band permits the firm to have control of manufacturing and augment efficiency. He added that the firm is proud of providing products enabling a larger set of population with their weight-loss needs and also provide logistics jobs in the country.
With annual revenue or about $300 million from Lap-Band, the firm aims to augment and enhance patient-direct advertising and promotion. Furthermore, with issues of overweight affecting over 70 percent of the American adults, the attractiveness of Lap-Band surgery would be significantly higher for patients, according to Christine Ren-Fielding, MD, FACS, Professor of Surgery, NYU School of Medicine, Division of Bariatric Surgery, Director, NYU Langone Weight Management Center.
Market Reaction:
On Friday, RSLS stock moved down 7.86% at $4.69 with more than 42.55 million shares, compared to its average volume of 6.25 million shares. The stock had moved within a range of $4.6500 – 6.2200 after opening the trade at $5.92. Over the past 52-week, the stock has been trading within a range of $0.6600 – 10.7700.
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