ReShape Lifesciences announces cost reduction plan, reorganization

ReShape Lifesciences announced a 2024 cost reduction plan and reorganization to prioritize the commercialization of the company’s next generation, enhanced Lap-Band 2.0 FLEX. Full implementation of the plan is expected to result in lower operating expenses of approximately $7.9 million in 2024 compared to $17.7 million in 2023, a 55.4% reduction, excluding one-time costs. “ReShape remains committed to delivering shareholder value and, ultimately, profitability. Our continued focus on restructuring is intended to ensure the long-term sustainability and scalability of the Company,” stated Paul Hickey, President and CEO. “As we considered the impact of GLP-1 prescriptions for weight loss treatment, which has put pressure on the bariatric industry, it was necessary to take a hard look at our operations and make significant cost reductions including a further reduction in staff, leading to a projected 55.4% decrease in operating expenses for 2024, compared to last year. This reorganization and decrease in expenses will allow us to focus on and optimize the commercialization of our physician-led redesigned Lap-Band 2.0 FLEX, designed to improve the patient experience, which is currently in the early launch stage. At the same time, we continue our high priority search for synergistic M&A opportunities and, as previously reported, have engaged Maxim Group LLC, on an exclusive basis, to assist in this process. Finding the right partner will be key to the long-term success of ReShape Lifesciences. We look forward to providing further updates during our year end 2024 earnings call, later this month,” concluded Mr. Hickey.