ReShape Lifesciences (OTC:RSLS) shares took a hit yesterday on second-quarter results that highlighted big losses.
The San Clemente, Calif.-based obesity and metabolic disease treatment developer posted losses of -$3.6 million, or -52¢ per share, on sales of $1.7 million for the three months ended June 30, 2020, for a 77% bottom-line gain on a sales decline of -61.8%.
“The ability for physicians to directly interact with their patients virtually has become increasingly important as obesity is the most-prevalent and severe underlying condition for COVID-19,” ReShape president & CEO Bart Bandy said in a news release. “ReShapeCare is a result of our company’s commitment and focus to drive revenue and shareholder value by expanding our differentiated offerings through new program development.
“While second-quarter revenue was materially impacted by COVID-19, trends in the last month suggest moderate stabilization in segments of the therapeutic weight-loss industry. Furthermore, the implementation of various cost reductions and cash flow improvement initiatives taken at the onset of the pandemic clearly were successful in reducing ReShape Lifesciences’ overall operating expenses and thusly limiting the impact to the bottom-line.”
ReShape Lifesciences did not offer full-year 2020 guidance amid the uncertainties caused by the COVID-19 pandemic.
RSLS shares were unchanged today but finished yesterday down -8.4% at $2.61 per share. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down -0.6%.
