ReShape Lifesciences Inc. (RSLS): BCG Matrix [Dec-2025 Updated]

You're looking at ReShape Lifesciences (RSLS) right now, and honestly, the picture isn't about steady growth; it's about a corporate near-death experience followed by a massive strategic pivot, which makes the traditional BCG Matrix look more like a liquidation analysis of their past. We're mapping their legacy assets-the Lap-Band franchise, which acts as a shrinking Cash Cow generating just $6.45 million in trailing twelve-month revenue as of June 30, 2025, against Dogs like Obalon, which saw revenue plummet 42.7% in Q1 2025-against their bet on the future. That future is the Vyome Therapeutics merger, an entry into immuno-inflammatory assets that is a pure Question Mark, a high-growth market where ReShape currently holds zero market share, so you need to see the full breakdown below to understand where the real value-or risk-now lies.

Background of ReShape Lifesciences Inc. (RSLS)

You're looking at ReShape Lifesciences Inc. (RSLS) right before it fully transitioned into Vyome Holdings, Inc. this past August. Honestly, the company, headquartered in San Clemente, California, was primarily known as a medical device outfit focused on minimally invasive obesity and metabolic disease treatments. Its core product line centered on physician-led weight-loss programs, most notably the LAP-BAND Adjustable Gastric Banding System.

The business also included the OSPREY Medical division, which handled non-invasive body-contouring platforms using controlled cooling. Furthermore, ReShape Lifesciences was actively developing its Diabetes Bloc-Stim Neuromodulation technology as a potential new treatment for type 2 diabetes mellitus. They had also secured patent allowances for this technology and their intragastric device in 2025, extending IP protection significantly.

The financial picture in 2025 showed significant headwinds, mainly from the rise of GLP-1 pharmaceuticals impacting sales. For the first quarter ended March 31, 2025, revenue fell a steep 42.7% year-over-year to just $1.1 million. The company reported a net loss of $7.1 million for the full year ending in early 2025, though operating expenses had been cut to $12.8 million from $20.9 million the prior year.

To manage these pressures and fund operations, ReShape Lifesciences took several decisive actions. They executed a 1-for-25 reverse stock split in May 2025 to improve market position, following a $6.0 million public offering in February 2025. By the end of Q2 2025, cash reserves had improved to $4.1 million, up from $0.7 million at the close of 2024.

The defining event for ReShape Lifesciences in late 2025 was the completion of its strategic pivot. Shareholders approved the merger with Vyome Therapeutics, Inc., which became effective on August 15, 2025. This transaction was coupled with the sale of substantially all of ReShape's assets to Biorad Medisys or Ninjour Health International Limited, depending on the specific filing detail. Post-merger, the entity was renamed Vyome Holdings, Inc. and began trading under the new ticker 'HIND' on the Nasdaq Capital Market.

ReShape Lifesciences Inc. (RSLS) - BCG Matrix: Stars

None; the legacy weight-loss market is disrupted by GLP-1 drugs, preventing high-growth/high-share status. The competitive environment has severely impacted the legacy portfolio's performance metrics as of 2025.

The financial performance of the core business units, which were slated for divestiture, clearly illustrates the lack of a Star position. For the year ending around April 4, 2025, ReShape Lifesciences Inc. reported annual revenue of only $8.0 million, a decrease from $8.7 million in the prior year, directly citing the growing popularity of GLP-1 pharmaceuticals as the cause for reduced Lap-Band sales. This trend continued into the first quarter of 2025, where revenues fell by 42.7% compared to the same quarter in 2024.

The company is actively divesting its core product portfolio, signaling a lack of long-term investment in existing high-share products. This strategic realignment confirms that these products are not candidates for future investment as Stars, but rather assets being shed to fund a new direction.

The assets being divested to Biorad Medisys (or its affiliate Ninjour Health International Limited) included the entire legacy weight management and neuromodulation portfolio:

• The Lap-Band System.
• The Obalon Gastric Balloon System.
• The Diabetes Bloc-Stim Neuromodulation (DBSN) System.

The future focus (Vyome's immuno-inflammatory assets) is a high-growth market but currently has zero market share for ReShape. The strategic move was a reverse merger with Vyome Therapeutics, Inc., which was completed around August 14, 2025, with the combined company expected to trade under the ticker symbol 'HIND'. This transaction positions the entity to advance Vyome's pipeline targeting immuno-inflammatory and rare diseases. The company did raise $4.5 million in a public offering in February 2025, and reported a Q3 2025 EPS of $1,551.45, but this is post-merger activity reflecting the new focus, not the legacy Star candidates.

ReShape Lifesciences Inc. (RSLS) - BCG Matrix: Cash Cows

You're looking at the core generator of funds for ReShape Lifesciences Inc. (RSLS) right now, the asset that historically provided the market leadership needed to sustain operations, even as the market matures.

The Lap-Band® System is definitely the primary revenue generator here, but honestly, you need to see it as a shrinking asset being harvested for cash. This is the classic profile of a Cash Cow: high market share in a mature, low-growth segment, meaning the focus shifts from aggressive expansion to maximizing the cash it spits out.

The trailing twelve-month revenue as of June 30, 2025, was $6.45 million, making it the largest, albeit declining, revenue stream for the company. This cash flow is what you need to cover administrative costs and fund other strategic moves, like the merger activity you're seeing.

The entire Lap-Band® franchise is part of the asset sale to Biorad Medisys, which is a textbook 'Harvest' strategy for a Cash Cow. You milk the asset for all it's worth before divesting it entirely. This move is designed to extract the remaining value from this high-share, low-growth product line.

To support this harvesting, the underlying profitability remains strong. Gross profit margin was 61.2% in Q1 2025. That margin provides the necessary capital to fund the merger and R&D efforts before the sale officially closes. It's a high-margin business unit, even as sales volume drops due to competitive pressures, like the GLP-1 drugs.

Here's a quick look at the financial snapshot for this unit during the period leading up to the sale:

The strategy here is clear: maintain the infrastructure just enough to keep the cash flowing efficiently. Investments are minimal, focused only on supporting the existing operation to maximize the cash yield. You want to see those high margins, like the 61.2% seen in Q1 2025, because that's pure cash generation.

The key characteristics of this Cash Cow unit are:

• High market share in a mature segment.
• Generates more cash than it consumes currently.
• Profitability remains high at 61.2% gross margin.
• TTM revenue stands at $6.45 million.
• The asset is being divested via sale to Biorad Medisys.

Finance: draft the final cash flow projection for the Lap-Band asset through the Biorad closing date by Monday.

ReShape Lifesciences Inc. (RSLS) - BCG Matrix: Dogs

You're looking at the legacy assets of ReShape Lifesciences Inc., the part of the business that's stuck in a low-growth, low-share environment. Honestly, these are the products that tie up capital without offering much return. We're talking about the legacy weight-loss device business, which definitely includes the Obalon® Gastric Balloon System. That segment is battling intense competition, largely from the newer GLP-1 pharmaceutical options, which is making its relevance decline fast.

The numbers here tell a clear story of market erosion. For the first quarter of 2025, the revenue fell by a sharp 42.7% year-over-year. That's a massive drop in a single quarter, signaling a rapidly deteriorating market position for these specific offerings. You see this pattern reflected in the full-year results too; the company reported a net loss of $7.1 million for the year ending December 31, 2024, showing the overall business is still a cash drain, even with cost-cutting efforts elsewhere.

Here's a quick look at how the financials for the legacy segment's context looked:

These Dogs are units that frequently break even or consume cash without much upside. Expensive turn-around plans rarely work here; the money is better spent elsewhere. The financial health was so precarious that the company had to execute a 1-for-25 reverse stock split in May 2025 just to maintain Nasdaq compliance, which is a classic sign of distress in the equity structure.

The reality for these low-share, low-growth assets is that they are prime candidates for divestiture, which seems to be the path ReShape Lifesciences is pursuing with its asset sale agreement. You should watch for any further actions that minimize exposure to these areas, as they are cash traps holding back resources that could fuel the Question Marks or Stars.

• Legacy device revenue contraction of 42.7% in Q1 2025.
• Full-year 2024 net loss of $7.1 million.
• Required a 1-for-25 reverse stock split in May 2025.
• FY 2024 revenue was $8.0 million.
• FY 2024 gross profit was $5.1 million.

ReShape Lifesciences Inc. (RSLS) - BCG Matrix: Question Marks

You're looking at the assets that were burning cash while promising future growth-the classic Question Marks of the ReShape Lifesciences Inc. portfolio before the August 2025 transition. These are the areas where the market share was low, but the potential, at least in theory, was high enough to warrant continued investment, or, as happened here, a strategic pivot.

The Diabetes Bloc-Stim Neuromodulation (DBSN) technology, with its patents extending until 2039, represents the high-potential, long-term bet. However, as of the latest available consolidated figures for ReShape Lifesciences Inc. before the merger, the financial reality showed significant cash consumption. The ReShapeCare™ virtual health coaching program was operating in a high-growth weight management services market, but its contribution to revenue was not offsetting the overall decline in the legacy business, which saw revenue fall to ($2.07) million for the third quarter of 2025, reported on November 14, 2025.

The need to quickly gain market share or divest was evident in the trailing twelve months revenue ending June 30, 2025, which stood at $6.45 million, marking a decrease of -19.81% year-over-year. This low return on investment, coupled with high operational needs, is the hallmark of a Question Mark that requires a definitive action. The company's financial efficiency metrics clearly illustrate the cash drain these units were contributing to:

The strategic pivot to Vyome Therapeutics' immuno-inflammatory assets was the company's aggressive investment strategy to turn this Question Mark into a Star, effectively selling off the low-share legacy businesses. This move involved an asset sale to Biorad Medisys and a merger with Vyome, resulting in the new entity, Vyome Holdings, Inc. (ticker: HIND), which began trading on Nasdaq on August 15, 2025. This transaction was a high-risk, high-reward play to gain immediate entry into a new sector where the potential market share is yet to be established by the combined company.

The urgency of this strategic shift is underscored by the fact that the company raised $4.5 million in a public offering in February 2025, yet still reported a concerning cash position. The workforce reduction implemented as part of the transition is expected to save over $750,000 annually, a clear move to reduce the cash burn associated with the previous structure. The future of the combined entity, Vyome Holdings, Inc. (ticker: HIND), is entirely dependent on the successful development and commercialization of these new, clinical-stage assets, as the legacy operations were effectively divested.

The mechanics of the transition involved significant corporate restructuring, including a 1-for-4 reverse stock split declared effective August 15, 2025. Prior to this, ReShape Lifesciences Inc. was trading around $2.37 with a market capitalization of $5.7 million. The Vyome side provided a $200,000 loan to support the merger process.

• DBSN patents extend until 2039.
• Workforce reduction expected to save $750,000 annually.
• Vyome provided a $200,000 loan for the merger.
• The new entity began trading on August 15, 2025.
• The company's Debt / Equity ratio was 0.02.