ReShape Lifesciences Inc. (RSLS): History, Ownership, Mission, How It Works & Makes Money

When you look at ReShape Lifesciences Inc. (RSLS), are you analyzing a weight-loss device company or a biotech startup? Honestly, since the August 2025 reverse merger with Vyome Therapeutics, it's the latter, but the history matters because the old business struggled, reporting Q1 2025 revenue of only $1.1 million, a 42.7% drop year-over-year, and held just $2.6 million in cash. This forced a massive pivot, where the company sold off its core assets like the Lap-Band system to focus on immuno-inflammatory and rare diseases under the new Nasdaq ticker, 'HIND.' You need to understand how a medical device innovator with a market cap of just $9.4 million completely re-set its mission to trully assess the new entity's risk and opportunity.

ReShape Lifesciences Inc. (RSLS) History

You're looking for the definitive story of ReShape Lifesciences Inc., and honestly, what you see today is a company in the middle of a major pivot. The history isn't a straight line; it's a series of strategic acquisitions and divestitures, culminating in a dramatic shift away from medical devices in 2025. The core takeaway is that the rise of pharmaceutical weight-loss options like GLP-1s forced a rapid, existential change.

Given Company's Founding Timeline

Year established

The company was initially established in 2002 as ReShape Medical, Inc., focusing on non-surgical devices for obesity treatment.

Original location

The original location was in San Clemente, California. The principal executive offices are now located in Irvine, California.

Founding team members

Specific details on the original founding team members are not publicly available in the company's historical filings. The early focus was on developing the ReShape Duo intragastric balloon technology.

Initial capital/funding

Information regarding the initial seed capital or funding rounds for the company's establishment in 2002 is not available. However, the company secured capital through various public offerings and agreements in 2024 and 2025, including a $6.0 million public offering in February 2025.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The most transformative period for ReShape Lifesciences has been the near-term strategic transactions in 2024 and 2025, driven by market pressures from new pharmaceutical competitors.

The rise of Glucagon-like Peptide-1 (GLP-1) drugs fundamentally changed the obesity treatment landscape. This competition directly impacted the company's core business, with revenue contracting by 42.7% year-over-year in the first quarter of 2025 to just $1.1 million. That's a tough headwind for any business.

This reality forced two clear, decisive actions:

• The Pivot to Immuno-Inflammatory Assets: ReShape Lifesciences entered a definitive merger agreement with Vyome Therapeutics, Inc. in 2024, a transaction that was progressing through 2025. The combined entity, to be renamed Vyome Holdings, Inc. and trade under the ticker 'HIND,' effectively shifts the company's focus from medical devices to Vyome's immuno-inflammatory drug pipeline.
• The Asset Sale: Simultaneously, the company agreed to sell substantially all of its assets, excluding cash liabilities, to Biorad Medisys. This sale, which includes the Lap-Band® and Obalon® balloon technology, is a clear divestiture of the legacy medical device business.

So, the company you're analyzing is really two stories: a legacy medical device firm that couldn't defintely withstand the pharmaceutical competition, and a new biopharma entity emerging from the merger. For a deeper dive into the numbers behind this strategic pivot, you should check out Breaking Down ReShape Lifesciences Inc. (RSLS) Financial Health: Key Insights for Investors.

ReShape Lifesciences Inc. (RSLS) Ownership Structure

The ownership structure of ReShape Lifesciences Inc. (RSLS) fundamentally changed in August 2025, following the completion of a reverse merger with Vyome Therapeutics, Inc. The company now operates as Vyome Holdings, Inc., trading on Nasdaq under the ticker HIND, with its strategic direction controlled by the former Vyome management and shareholders.

Given Company's Current Status

ReShape Lifesciences Inc. is no longer a standalone entity focused on weight loss devices. The company completed a reverse merger, a process where a private company (Vyome Therapeutics) effectively takes over a public company (ReShape Lifesciences) to become publicly traded quickly. The new entity, Vyome Holdings, Inc., trades on the Nasdaq exchange under the symbol HIND as of August 15, 2025.

This was a transformative move, which included the sale of the core ReShape assets-like the Lap-Band and Obalon Gastric Balloon systems-to Biorad Medisys. The new company's focus is on developing therapies for chronic immune-inflammatory conditions, a complete shift from ReShape's original mission. You need to defintely view this as a new company with a new mandate and a new control group.

Given Company's Ownership Breakdown

The merger terms dictated a significant shift in shareholder control, with the former Vyome Therapeutics shareholders taking the dominant position. Former ReShape Lifesciences shareholders, who once held the entire company, now control only a minority stake in the combined entity, Vyome Holdings, Inc. This is the new reality as of the 2025 fiscal year.

Here's the quick math: the former RSLS shareholders' stake of 11.1% in the new company means the strategic control is firmly with the former Vyome team. For context, before the merger, RSLS had very low institutional ownership at just 1.35% in June 2025, with insiders holding about 10.63%. The retail investor base was vast, but their collective stake has been diluted into this 11.1% minority position.

Given Company's Leadership

The new leadership team is composed primarily of the former Vyome Therapeutics executive officers, reflecting the new company's focus on immuno-inflammatory conditions and the U.S.-India innovation corridor. The board also reflects this shift, with six directors designated by Vyome and only one by ReShape.

• Venkat Nelabhotla, MBA: Chief Executive Officer (CEO) and Co-Founder.
• Krishna K. Gupta: Chairman of the Board.
• Robert Dickey: Chief Financial Officer (CFO).
• Richard Fahrner, Ph.D.: Chief Technology Officer (CTO).
• Shiladitya Sengupta: Co-Founder and Board Member.
• Dr. Tamara Agajanov, MD: Senior Vice President of Clinical Development.

This is a completely new executive team, so the average management tenure is very short-about 0.2 years as of late 2025. This new structure is the key to understanding the company's future strategy, which you can read more about in their Mission Statement, Vision, & Core Values of ReShape Lifesciences Inc. (RSLS).

Next step: Check the HIND investor relations page for the latest Q3 2025 earnings call transcript to understand their new clinical trial milestones and funding runway.

ReShape Lifesciences Inc. (RSLS) Mission and Values

ReShape Lifesciences Inc.'s core purpose was centered on pioneering less-invasive solutions for obesity and metabolic health, but this mission was fundamentally redefined in 2025 by a strategic merger and asset sale that pivoted the company toward immuno-inflammatory therapeutics.

You need to understand that the company you're analyzing-the one focused on Lap-Band-is no longer the long-term entity; the strategic goal shifted to maximizing shareholder value through a transformative transaction, which is a powerful, if cold, statement of its current value system.

Given Company's Core Purpose

The company's foundational purpose, prior to the August 2025 merger with Vyome Therapeutics Inc., was to fill a crucial gap in the weight loss market by providing products that were safer and less invasive than traditional bariatric surgery. They aimed to offer a comprehensive, integrated portfolio of products and services to manage and treat obesity and metabolic disease. That's a clear, patient-focused goal.

This commitment is evident in their product focus, like the FDA-approved Lap-Band System, which offers a minimally invasive, long-term treatment alternative. However, the Q1 2025 revenue of only $1.1 million, representing a 42.7% contraction year-over-year, shows the financial pressure that drove the strategic pivot in the face of competition like GLP-1 pharmaceutical alternatives. You can see more on this financial context in Breaking Down ReShape Lifesciences Inc. (RSLS) Financial Health: Key Insights for Investors.

Official Mission Statement

The company's mission, as stated in their corporate communications up to the point of the merger, was to be:

• America's premier weight loss and metabolic health-solutions company.
• Offering an integrated portfolio of proven products and services that manage and treat obesity and metabolic disease.

Honestly, the core value here was Minimally Invasive Innovation. They put capital behind developing less-invasive options, like the investigational vagal neuromodulation system for Type 2 diabetes, which received an international patent extending protection until December 2039.

Vision Statement

While a single-sentence vision statement isn't always public, the company's actions and stated goals paint a clear picture of their forward-looking aspirations:

• To expand access to effective, less-invasive alternatives to traditional bariatric surgery to a broader global patient base.
• To improve the quality of life of patients their products and therapies serve.
• To maximize stockholder value through strategic transactions and a diversified product portfolio.

The last point is the one that ultimately won out, leading to the sale of the core weight-loss assets to Biorad Medisys for $5.16 million and the merger, transforming the entity's future vision entirely toward immuno-inflammatory assets under the new Vyome Holdings, Inc. banner.

Given Company Slogan/Tagline

The most consistent and descriptive tagline used in their official releases, which speaks to their operational model and values, is:

• The premier physician-led weight loss and metabolic health solutions company.

This emphasized a commitment to professional medical guidance and expertise, a key differentiator in a crowded weight-loss market. Still, the new reality is that the new entity's focus is biopharma and AI, not physician-led weight loss devices. The old tagline is now a historical marker of the company's original DNA.

ReShape Lifesciences Inc. (RSLS) How It Works

ReShape Lifesciences operates as a medical device company focused on providing a spectrum of solutions for obesity and metabolic disease, ranging from minimally invasive surgical devices to non-surgical technologies and a pipeline of neuromodulation therapies. The company generates revenue by selling its device systems and related components to bariatric surgeons, gastroenterologists, and aesthetic practitioners, positioning itself as a physician-led solution provider in a market increasingly dominated by pharmaceutical alternatives.

ReShape Lifesciences Inc.'s Product/Service Portfolio

The company's commercial and investigational portfolio spans surgical, non-surgical, and advanced metabolic treatment platforms, targeting different patient needs along the obesity and diabetes care continuum.

ReShape Lifesciences Inc.'s Operational Framework

The operational value chain is built on intellectual property, focused manufacturing, and a physician-centric distribution model, though it is currently undergoing significant strategic restructuring to improve efficiency.

Here's the quick math: ReShape Lifesciences reported Q1 2025 revenue of only $1.1 million, a 42.7% contraction from the prior year, primarily due to the rise of GLP-1 pharmaceutical competitors, so the focus is now squarely on cost control and strategic transactions.

• Product Development: Focuses on minimally invasive devices, with a clear pivot to creating next-generation products, like the Lap-Band 2.0 FLEX, that are designed to work in combination with new medical therapies, not just compete against them.
• Manufacturing & Supply: Relies on third-party manufacturing for its device systems, allowing the company to maintain a relatively lean operational structure and focus capital on R&D and commercialization.
• Distribution & Sales: Utilizes a direct sales force and strategic distribution partnerships, such as the agreement for the Lap-Band 2.0 FLEX in Canada, to reach bariatric surgeons and specialists. The model is physician-led, meaning the company sells the devices to the doctors who then treat the patients.
• Cost Optimization: A major initiative in 2025 involved a strategic workforce reduction announced in June, which is projected to save the company over $750,000 annually, equating to roughly 23% of its wage expenses.

The company is defintely in a transition phase, with the pending merger with Vyome Therapeutics, Inc. and an asset sale to Biorad Medisys expected to reshape the future entity's focus and financial foundation. You can read more about the strategic direction in our analysis: Mission Statement, Vision, & Core Values of ReShape Lifesciences Inc. (RSLS).

ReShape Lifesciences Inc.'s Strategic Advantages

In a tough market, the company's advantages are centered on intellectual property, a proven product base, and a clear strategy to adapt to the new competitive landscape.

• Intellectual Property Moat: Receipt of multiple patent allowances in 2025 for its intragastric device and diabetes neuromodulation technologies, securing intellectual property protection through at least 2039. This is a long runway.
• Established Product Platform: The Lap-Band System is FDA-approved and has a long-standing track record as a safe, adjustable, and durable weight loss solution, offering a less invasive surgical alternative to gastric bypass or sleeve gastrectomy.
• GLP-1 Combination Strategy: The Lap-Band 2.0 FLEX is specifically designed with self-adjusting technology to work seamlessly alongside the new class of GLP-1 medical therapies, positioning it for a potential combination therapy market.
• Diversified Portfolio: The company offers a range of solutions-surgical (Lap-Band), non-surgical (Obalon), and aesthetic (OSPREY Medical division's body-contouring)-which allows them to target a broader spectrum of the metabolic and aesthetic health market.

ReShape Lifesciences Inc. (RSLS) How It Makes Money

ReShape Lifesciences primarily makes money by selling its proprietary obesity and metabolic health medical devices, especially the Lap-Band System, to hospitals, clinics, and surgeons, plus a smaller amount from digital health services and distribution agreements.

You need to understand that the company's financial structure is undergoing a massive, near-total transformation in 2025. The core business of selling weight-loss devices is being sold off as part of a strategic shift, which is why the financials look so volatile and why the Q3 numbers are so strange. This is a business in active transition.

ReShape Lifesciences Inc.'s Revenue Breakdown

The company's revenue streams are dominated by its flagship medical device, the Lap-Band System, and related surgical products. However, this entire segment is under severe pressure from the rise of GLP-1 pharmaceutical weight-loss alternatives, which is driving a steep revenue decline and the subsequent decision to sell the assets.

The Lap-Band System, an adjustable gastric band, remains the largest revenue generator, but its sales volume has contracted significantly, driving the overall revenue down. The digital health platform, ReShapeCare, which offers virtual health coaching and support, makes up the remaining, smaller portion, though it is not enough to offset the device sales drop.

Business Economics

The fundamental economic challenge for ReShape Lifesciences in 2025 is the direct and powerful competition from new-generation GLP-1 agonist drugs, which offer a non-surgical alternative to the company's core products. This shift has fundamentally broken the old business model.

• Pricing Pressure: The Lap-Band is a premium, one-time surgical procedure, but the convenience and efficacy of pharmaceutical options are making it a harder sell, forcing a re-evaluation of the device's value proposition.
• Strategic Pivot: The company is executing a definitive pivot away from its device business. Key corporate actions in 2025 include the planned merger with Vyome Therapeutics and the sale of substantially all of ReShape's existing assets to Biorad Medisys/Ninjour Health International Limited. This means the future revenue will come from Vyome's immuno-inflammatory assets, not the Lap-Band.
• The Asset Sale: The sale of the Lap-Band and related assets is essentially a liquidation of the legacy business, which is why the company's financial statements are so messy. The Q3 2025 reported revenue of ($2.07) million is a clear red flag, likely reflecting major adjustments, write-downs, or transaction-related accounting entries rather than typical sales activity. That's a massive accounting headache.
• New Focus: The strategic move is a high-risk, high-reward bet to transform the company into a biopharmaceutical entity, completely changing its revenue engine and economic profile. You can read more about the long-term strategic shift here: Mission Statement, Vision, & Core Values of ReShape Lifesciences Inc. (RSLS).

ReShape Lifesciences Inc.'s Financial Performance

The financial results for 2025 reflect a company in distress and mid-restructuring, not a stable operating entity. The core numbers show a sharp contraction in sales, despite some success in cutting costs.

• Total Revenue Contraction: For the first quarter of 2025, total revenue fell to just $1.1 million, a sharp 42.7% year-over-year decrease. The Last Twelve Months (LTM) revenue as of June 30, 2025, stood at $6.45 million.
• Gross Margin: The company maintained a relatively high gross margin of 61.2% in Q1 2025, up slightly from 59.9% in the prior year, mostly due to aggressive cuts in overhead costs like payroll. This shows the product itself still carries a decent margin, but the volume is the issue.
• Net Income Volatility: Despite the revenue drop, Q1 2025 saw a positive net income of approximately $1.5 million. This was a massive turnaround, but it was driven by non-operational factors, not sales, and should not be seen as a sustainable profit.
• Cash and Liquidity: As of March 31, 2025, the company reported a cash balance of $2.6 million. The company has been active in capital raising, including a $6.0 million public offering in February 2025, to fund operations through the transition.

Here's the quick math: The revenue is shrinking fast, but the company is managing to stay afloat financially only through extreme cost-cutting, capital raises, and the impending sale of its assets. Your action item is to track the closing details of the Vyome merger and the asset sale, as the old RSLS is defintely disappearing.

ReShape Lifesciences Inc. (RSLS) Market Position & Future Outlook

The company formerly known as ReShape Lifesciences Inc. has undergone a fundamental transformation in 2025, pivoting away from the competitive bariatric device market to become a new entity, Vyome Holdings, Inc., trading under the ticker HIND. This strategic shift moves the focus from weight-loss devices like the Lap-Band to developing therapies for chronic immune-inflammatory conditions, a major change that resets its entire market position.

Competitive Landscape

The competitive analysis below reflects the landscape of the legacy medical device business, which was sold off in August 2025. This legacy business operated in a niche market segment facing intense pressure from new pharmaceutical alternatives (GLP-1s).

Here's the quick math: ReShape Lifesciences' trailing twelve-month (TTM) revenue as of June 30, 2025, was about $6.45 million, set against a 2025 global bariatric surgery devices market estimated at $2.80 billion. That puts the legacy device business firmly in a niche, sub-1% position, which is why the pivot was defintely needed.

Opportunities & Challenges

The new entity, Vyome Holdings, Inc., is now focused on a completely different market, but the transition itself presents both immediate opportunities and significant risks for shareholders.

Industry Position

The company's industry standing has been completely redefined. It is no longer a small-cap player in the bariatric device space but an emerging micro-cap biotechnology firm. The legacy business was a marginal competitor, consistently losing ground to both major surgical device makers and the new class of highly effective pharmaceutical weight-loss options.

The strategic move is a high-risk, high-reward bet on the new management team and their focus on artificial intelligence (AI) integration and U.S.-India synergies for drug development. This shift means the company trades its previous position in a declining niche for a shot at a massive, but crowded, chronic disease market.

• Legacy Market Exit: The company effectively abandoned the bariatric device market, where its TTM revenue was unsustainable.
• Biopharma Entry: The new entity, Vyome Holdings, Inc., is now positioned in the biopharma sector, focused on immune-inflammatory conditions.
• Technology Pivot: The core competitive advantage shifts from the Lap-Band to the new company's proprietary drug development and AI platform.

If you want to understand who is still holding shares through this massive change, you should read Exploring ReShape Lifesciences Inc. (RSLS) Investor Profile: Who's Buying and Why?