ReShape Lifesciences Inc (NASDAQ: RSLS) is having a strong start to the trading session this morning, and for good reason. The comapny announced that it is expanding its business in the Middle East. Of course, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The news;
- what we’re seeing from RSLS as a result; and
- what we’ll be watching for with regard to the stock ahead.
RSLS Announces Expansion News
As mentioned above, ReShape Lifesciences is having a strong start to the trading session this morning after announcing expansion news. In a press release issued early this morning, the company said that it is further expanding its ReShape Balloon business in the Middle East. In the release, the company provided a list of several recent developments.
First and foremost, RSLS said that in January 2019, Dr. Haya Ahmed Khalfan Isa Khalfan, Consultant General Surgeon at BDF Military Hospital in Bahrain will be trained at a facility in the United States with regard to the use of the product. As a result, he will become the first surgeon in Bahrain to be trained on the ReShape Balloon.
Also, the company said that it recently received a large order for the product from a distributor in Saudi Arabia, matching their previous order. Furthermore, over 20 reputable centers and hospitals in the Middle East now offer the ReShape Balloon to their customers.
Finally, RSLS Said that according to Renew Bariatrics, as much as 75% of the population in the Middle East are either overweight or obese. That figure is more than double the 30% global rate of obesity and overweight consumers. As a result, the company has ben increasing the presence of its ReShape Balloon and share of the Middle East Markets. In particular, the company is focusing on top countries like Saudi Arabia, Kuwait, the UAE and soon, it will be in Bahrain.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of ReShape Lifesciences, the news proved to be incredibly positive. After all, the continued expansion of its business in the Middle East will likely open the door to stronger revenues and the type of growth that investors are looking for. So, it’s not surprising to see that excited investors are reacting in a positive way. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:21), RSLS is trading at $0.78 per share after a gain of $0.25 per share or 3.28% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on RSLS. In particular, we’re interested in following the story surrounding the company’s continued work to expand its presence in the Middle East and around the world. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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