Why Did ReShape Lifesciences Plunge 8.75% Amid Vyome Merger?

On August 14, 2025, ReShape Lifesciences experienced a significant drop of 8.75% in pre-market trading, marking a notable shift in its stock performance.

Vyome Therapeutics, a clinical-stage biotech firm, is set to merge with ReShape Lifesciences, with the merger expected to take effect on August 15, 2025. This strategic move will see Vyome Therapeutics take control and rename the company, marking a significant leadership transition for ReShape Lifesciences.

Vyome Therapeutics has announced a new board of directors, heavily aligned with shareholders, which will completely replace the existing ReShape team. This new board includes MIT alumni with expertise in artificial intelligence, engineering, and life sciences, positioning Vyome to leverage cutting-edge AI-driven drug discovery tools.

The merger with ReShape Lifesciences is part of Vyome's strategy to gain immediate access to public market capital, which is crucial for scaling its AI-driven pipeline. The combined entity will be listed as Vyome Holdings, Inc. under the ticker HIND, providing the company with the resources needed to accelerate its drug discovery timelines and reduce costs.

Vyome's focus on AI-driven healthcare extends beyond drug discovery to clinical trial optimization. By using machine learning to predict patient recruitment patterns and trial outcomes, the company aims to reduce the time and cost of bringing therapies to market, aligning with global trends in biotech.