ReShape LifeSciences (NASDAQ:RSLS) Stock Slumps 54% in a Month: But Why?
Investors might have noticed that ReShape LifeSciences (NASDAQ:RSLS) has come into considerable focus among investors over the course of the past month and over the past month; the stock has managed to clock gains of as much as 54%.
The company is involved in the weight loss and health solutions industry and this past week it made a major announcement as well. The company announced that it completed the move to change the manufacturer of its product Lap-Band from Apollo Endosurgery to a company based out of Massachusetts.
This is a major development for the company considering the fact that the company claimed that this move is going to help in the reduction of costs, boost margins and also enable ReShape to have direct control over the manufacturing process. It should be noted that Lap-Band is one of the most important products that are manufactured by ReShape.
It is the one and only weight loss device that has been approved by the United States Food and Drug Administration. More importantly, it is targeted at customers in the United States who have a BMI of 30 or more. It is now going to be interesting to see if the stock can continue to add to its gains next week.
Market Reaction:
On Friday, RSLS stock fell 8% at $4.69 with more than 42.55 million shares, compared to its average volume of 6.25 million shares. The stock had moved within a range of $4.6500 – 6.2200 after opening the trade at $5.92. Over the past 52-week, the stock has been trading within a range of $0.6600 – 10.7700.
