ReShape Lifesciences Partners with Recon Supply for U.S. Distribution Deal

ReShape Lifesciences has partnered with Recon Supply to distribute their neuromuscular rehabilitation device and Lap-Band 2.0 FLEX in the US. The agreement aims to expand access to these treatments for over 18 million veterans and active military members. Analysts forecast an average target price of $1.00 for RSLS, indicating a potential downside of 56.33% from the current price of $2.29. The average brokerage recommendation is 3.0, indicating a "Hold" status.

ReShape Lifesciences has entered into an exclusive U.S. distribution agreement with Recon Supply, aiming to expand access to its innovative medical products, including the STIMEL-03 neuromuscular rehabilitation device and the Lap-Band® 2.0 FLEX, across the Veterans Administration (VA) and Department of Defense (DoD) healthcare systems. This strategic partnership seeks to improve treatment options for over 18 million veterans and active military personnel.

Paul F. Hickey, President and Chief Executive Officer of ReShape Lifesciences, emphasized the importance of this agreement in enhancing access to advanced medical technologies for recovering service members. The STIMEL-03, an FDA-cleared neuromuscular rehabilitation platform, provides real-time EMG biofeedback and personalized electrical stimulation, transforming clinical care for patients recovering from stroke, injury, or surgery. The Lap-Band® 2.0 FLEX, a next-generation, minimally invasive weight loss solution, offers a safe and adjustable option for individuals struggling with obesity.

Steve Clark, Chief Executive Officer of Recon Supply, a Service-Disabled Veteran-Owned Small Business, underscored the alignment of their mission with the needs of the veteran community. Recon Supply, which has experienced significant growth with a year-over-year increase of over 113%, will leverage its established access to VA and DoD facilities to distribute ReShape’s technologies. This partnership aims to enhance patient care through innovative solutions tailored to the unique healthcare needs of veterans and active-duty personnel.

Analysts have forecasted an average target price of $1.00 for ReShape Lifesciences (RSLS) stock, indicating a potential downside of 56.33% from the current price of $2.29. The average brokerage recommendation is 3.0, suggesting a "Hold" status. This agreement may influence market sentiment, but its impact remains to be seen.

ReShape Lifesciences and Recon Supply aim to deliver high-impact, clinically proven solutions to patients in need, reflecting their commitment to serving those who have served the country. This partnership could have significant implications for the healthcare sector, particularly for veterans and active military personnel.

References:
[1] https://www.nasdaq.com/articles/reshape-lifesciences-signs-exclusive-us-distribution-agreement-recon-supply-veteran-and
[2] https://www.nasdaq.com/articles/reshape-lifesciences-partners-with-recon-supply-to-distribute-innovative-medical-products