ReShape Life Sciences Inc. (NASDAQ: RSLS) is a company specializing in medical equipment that is geared towards patients suffering from heart conditions and obesity to metabolic ailments. What was once a star performer with a presence in the US, Europe, Australia, and other international markets has fallen to deadly lows, with imminent challenges.
Plummeting RSLS Share Price
The stock for ReShape Life Sciences Inc. (RSLS) has had an awful year in 2022, which saw it fall from its glorious highs of above $70, down to a low of $5.40. This comes despite several noteworthy updates that had taken place in the last 12 months, including an FDA approval for its very own disposable Gastro Intestinal Balloon Indicator calibration tube. The impact of this, owing to its small demand, remains minuscule, relative to the wider performance of the company.
Financial Challenges Mount on For ReShape Life Sciences
The woes that RSLS currently faces can best hold reflected in the company’s business performance. In its most recent quarterly report, its revenue saw a contraction, year-on-year, by as much as 25%. This drop by $900,000 comes as the management attempts to shift to US markets and diverge focus away from the lucrative European markets. ReShape is clearly bearing the cost of this strategic miscalculation, yet maintains that the move will pay off in the coming years. Its existing pipeline holds no promising candidates as of yet, which places the company’s hopes at bleak levels. This explains the market’s wider pessimism surrounding RSLS.
RSLS is a stock that has performed terribly, owing to fragile fundamentals, and a losing grip on its market share due to strategic miscalculations. Shareholders are clearly facing panic as the market cap of the company seems to have fallen to dangerous lows, and is on the verge of dropping below $3 million. All signs show that delisting maybe soon.