ReShape Lifesciences (NASDAQ:RSLS) Stock Attempts To Recover: Good Time To Buy?

ReShape Lifesciences (NASDAQ:RSLS) gained 11%, but the stock has lost 25% in a week. The trigger for the jump was the announcement that the company will move Lap-Band production to the US.

 In addition, the company announced that it had completed the transition of Lap-Band production to a Massachusetts-based company from Apollo Endosurgery. With the transition, the company will be in direct control of production, cut costs, and improve margins.

According to the company, Lap-Band is currently the only laparoscopic weight-loss device with FDA approval indicted BMI above 30 in the US. For almost three decades, the procedure has been conducted in over a million cases, and insurers reimburse eligible patients. In addition, the company stated that Lap-Band is a safe bariatric procedure supported by over 20 years of data showing minimal complications and reduced mortality rates relative to conventional surgical weight-loss techniques. Therefore, in weeks to come, RSLS is a stock to keep an eye on.

Market Reaction:

On Thursday, RSLS stock rose 11% at $4.48 with more than 6.69 million shares, compared to its average volume of 6.70 million shares. The stock had moved within a range of 4.0000 – 4.5800 after opening the trade at $4. Over the past 52-week, the stock has been trading within a range of $0.6600 – 10.7700.