IRVINE, Calif. - ReShape Lifesciences (NASDAQ:RSLS), a company specializing in weight loss and metabolic health solutions, has been granted a Notice of Allowance from the U.S. Patent and Trademark Office for a new intragastric balloon system. This patent, when issued, will extend protections for the company's device until at least January 2031.
The patent application, numbered 18/370,819, details a swallowable intragastric balloon system designed to degrade in the stomach. It features separate fill and release valves, an innovation in the design of such devices.
This advancement is part of ReShape Lifesciences' broader effort to enhance its intellectual property portfolio, which includes over 50 patents related to the intragastric balloon system and more than 160 issued and pending patents across various medical devices.
Paul F. Hickey, President and CEO of ReShape Lifesciences, emphasized the importance of the patent, stating it "significantly strengthens our intellectual property portfolio around our innovations for an intragastric balloon system."
He also mentioned the company's commitment to protecting its product portfolio and commercialization efforts, hinting at the potential for "offensive action to defend our position utilizing non-diluting funding."
ReShape Lifesciences is known for its FDA-approved Lap-Band System, which offers a minimally invasive alternative to surgical weight loss procedures. The company is also developing the investigational Diabetes Bloc-Stim Neuromodulation (DBSN) system for Type 2 diabetes and metabolic disorders treatment, and the Obalon balloon technology, a non-surgical weight loss solution.
The company's strategy includes a focus on building a defensive 'moat' around its product offerings, ensuring its position in the market against competitors. This latest patent allowance is a step towards fortifying that strategy.
The information provided is based on a press release statement from ReShape Lifesciences. The company's forward-looking statements indicate plans for future intellectual property protection measures but are subject to known and unknown risks and uncertainties.
InvestingPro Insights
As ReShape Lifesciences (NASDAQ:RSLS) fortifies its intellectual property with the recent Notice of Allowance for its intragastric balloon system, the financial metrics from InvestingPro paint a complex picture. With a market capitalization of just $4.27 million, the company is relatively small in the medical device sector. This is reflected in the company's revenue decline over the last twelve months as of Q3 2023, which saw a decrease of 13.01%. Despite this, ReShape maintains a gross profit margin of 54.11%, suggesting strong profitability on the products it does sell.
However, the company's financial challenges are highlighted by its negative P/E ratio of -0.27 for the same period, indicating that it is not currently profitable. The InvestingPro Tips suggest that analysts are not optimistic about the company's profitability in the near term, noting that ReShape is burning through cash quickly and may see a sales decline in the current year. Moreover, the stock price has fallen significantly over the last year, with a 94.19% decline in one-year price total return as of the recent data point.
For investors looking to dive deeper into ReShape Lifesciences' financials and future outlook, InvestingPro offers additional insights. There are 11 more InvestingPro Tips available, which could provide a more nuanced understanding of the company's position and potential. Interested readers can explore these tips and take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/RSLS.
While ReShape's strategic efforts in expanding its patent portfolio are commendable, investors may want to consider these financial metrics and InvestingPro Tips when evaluating the company's long-term viability and market position.
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