Why Did ReShape Lifesciences Plunge 39.47% After Public Offering?

On June 9, 2025, ReShape Lifesciences experienced a significant drop of 39.47% in pre-market trading, marking a notable decline in its stock performance.

ReShape Lifesciences recently announced a public offering priced at $2.50 per share, raising $2.6 million. This offering is part of the company's strategy to secure additional funding for its innovative Obalon® balloon technology, a non-surgical, swallowable, gas-filled intra-gastric balloon designed for long-lasting weight loss.

The company's short interest stands at 44,000 shares, representing 6.29% of the float. This indicates a level of bearish sentiment among investors, which could contribute to the stock's volatility.

Despite the recent decline, ReShape Lifesciences has shown significant price movements in the past, with its stock surging by 81.6% to $0.62 during a previous trading session. This volatility reflects the dynamic nature of the healthcare sector and the potential for substantial gains or losses based on market sentiment and company developments.