Reshape Lifesciences (RSLS) Stock Is Crashing On Offering

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Reshape Lifesciences RSLS Stock News

UPDATE: Reshape Lifesciences (NASDAQ: RSLS) is tanking. After this morning’s positive news, the company announced an offering. The full update is provided below. 

Reshape Lifesciences Inc (NASDAQ: RSLS) is up in the market today after the company announced that it presented new clinical data at a prestigious medical conference. Of course, the news excited investors, sending the stock on a run for the top. While the stock has dropped from highs of as much as 30%, the gains seen today are still impressive. Below, we’ll talk about:

  • The data that was presented;
  • what we’re seeing from RSLS stock as a result; and
  • what we’ll be watching for ahead.

RSLS Announces The Presentation Of Clinical Data

As mentioned above, ReShape Lifesciences is having an incredibly strong day in the market today after announcing the presentation of new data. In a press release issued early this morning, the company said that new data was presented during a poster presentation at the recent ObesityWeek 2018 conference in Nashville.

The data that was presented came by way of poster. RSLS said that the title of the presentation was “Dual Vagus Neuromodulation Improves Glycemic Control in Obese Rat and Pig Models of Type 2 Diabetes.” The presentation discussed a the use of vBloc technology to stimulate nerves feeding into the pancreas. At the same time, the treatment blocks nerves feeding into the liver.

Ultimately, this procedure is designed to increas the body’s natural release of insulin and prevent glucose release from the liver into the bloodstream. If all goes well with this treatment, the need for injectable insulin and drug therapies could be greatly reduced.

The poster in particular highlighted the results of experiments that were conducted by RSLS. These experiments were conducted in obese type 2 diabetic rats and in a single type 2 diabetic pig model.

In the pig model, blood glucose was significantly reduced in the diabetic pig compared to the control. In the rat study, the company said that similar statistical significance was achieved.

In a statement, Dr. Charles Billington, MD, the lead investigator for the study, had the following to offer:

If this data can be replicated and translated into human studies, this would be a genuinely new approach for treatment of type 2 diabetes mellitus.

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 that was released today proved to be overwhelmingly positive. While we are still in the very early stages of this technology, pig and rat models show that the company’s technique to increase activity in the pancreas while decreasing glucose released by the liver is working well. Should this same result translate to human patients, the potential here could be incredible. So, it’s not surprising to see that excited investors are sending the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:30), RSLS is trading at $1.35 per share after a gain of $0.099 per share or 7.92% so 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 company’s continued work to bring its new technique for the treatment of type 2 diabeties through the various stages of development. At the moment, the data seems promising. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

UPDATE: RSLS Announces Offering

Following the positive news released early this mroning, Reshape Life Sciences issued news of an offering. RSLS said that it will sell 8 million shares as well as 8 million warrants to purchase shares for $10 million or $1.25 per share.

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