ReShape Lifesciences Announces Fourth Quarter and Year End 2017 Financial Results
SAN CLEMENTE, Calif., April 2, 2018 /PRNewswire/ -- ReShape Lifesciences Inc. (NASDAQ:RSLS), a developer of minimally invasive medical devices to treat obesity and metabolic diseases, today reported financial results for the three months and full year ended December 31, 2017.
Recent Highlights and Accomplishments
- Achieved revenue of $1.3 million for the full year 2017
- Placed 101 vBloc units in 2017, as compared to 63 for the comparable 2016 year, representing a 60% increase year over year
- Completed the acquisition of ReShape Medical in October 2017
- Announced agreement with Academy Medical to provide ReShape Balloon and ReShape vBloc to Department of Defense facilities in March 2018
- Announced that the ReShape Balloon technology was granted employee coverage through a supplemental coverage policy at a multinational telecommunications corporation in December 2017
- Announced real-world safety and efficacy study results on ReShape Balloon™ published in the Journal of Clinical Gastroenterology and Hepatology im March 2018
- Announced today that it has entered into a securities purchase agreement with certain institutional investors providing for the sale of $6.0 million in a registered direct offering. ReShape Lifesciences expects to receive net proceeds of approximately $5.25 million after deducting placement agent fees and other offering expenses.
"During this past year, our team made significant strides in our business as we proved our ability to develop a solid strategy and to then follow through and execute on that strategy," said Dan Gladney, President, Chief Executive Officer and Chairman of the Board. "During 2017 we transformed EnteroMedics from a single product company into ReShape Lifesciences, a comprehensive provider of solutions for the obesity continuum of care. We are excited to now offer our solutions to change the lives of our patients and customers."
Fourth Quarter 2017 Financial Results
For the three months ended December 31, 2017, the Company reported sales of $794,000 and gross profit totaling $156,000. The Company placed 21 units, primarily from the vBloc Now program, a 91% increase compared to 11 units in the fourth quarter of 2016. The growth in revenue was attributable to contributions from the acquired ReShape Dual Balloon product of $718,000.
Full Year 2017 Financial Results
For the year ended December 31, 2017, the Company placed 101 vBloc units, primarily for the vBloc Now program, a 60% increase compared to 63 units in 2016. The Company reported revenues of $1.3 million with gross profit totaling $351,000 in the full year ended December 31, 2017.
As of December 31, 2017, the Company had cash and cash equivalents totaling $10.2 million and it had no debt.
Management will host an investment community conference call today beginning at 1:30 p.m. Pacific Time /4:30 p.m. Eastern Time.
Individuals interested in listening to the conference call may do so by dialing (877) 280-7473 for domestic callers or (707) 287-9370 for international callers, using Conference ID: 4085569. To listen to a live webcast or a replay, please visit the investor relations section of the Company website at: http://ir.reshapelifesciences.com/.
About ReShape Lifesciences Inc.
ReShape Lifesciences™ is a medical device company focused on technologies to treat obesity and metabolic diseases. The FDA-approved ReShape Balloon™ System involves a non-surgical weight loss procedure that uses advanced balloon technology designed to take up room in the stomach to help people with a 30-40 kg/m2 Body Mass Index (BMI) and at least one co-morbidity lose weight. ReShape vBloc™ Therapy, delivered by an FDA-approved pacemaker-like device called the ReShape vBloc System, is designed to help patients with a 40-45 kg/m2, or a 35-39.9 kg/m2 BMI and at least one co-morbidity feel full and eat less by intermittently blocking hunger signals on the vagus nerve. The ReShape Vest™ System is an investigational, minimally invasive, laparoscopically implanted medical device that wraps around the stomach, emulating the gastric volume reduction effect of conventional weight-loss surgery, and is intended to enable rapid weight loss in obese and morbidly obese patients without permanently changing patient anatomy.