ReShapeLifeSciences (NASDAQ:RSLS) Stock Consolidates After The Recent Fall: What to do Now?
ReShapeLifeSciences (NASDAQ:RSLS) is moving in range after gains last week. The stock popped after ReShape announced transitioning of Lap-Band manufacturing to the US.
In its announcement, the company said that it had finalized moving Lap-Band production from Apollo Endosurgery, with manufacturing now taking place through a manufacturer based in Massachusetts. With the transition in manufacturing, the company can now directly control the production process, cut costs and enhance margins.
La-Band is the only laparoscopic device for weight loss with FDA approval, and it is indicated for BMI or more than 30. Since 1993, there have been over one million cases where the procedure has been used, and insurance companies mostly reimburse eligible patients. ReShape said that Lap-band is among the safest and proven bariatric procedures currently available in the market. So the shifting news is massive, considering the Lap-band is still one of the top weight loss procedures. In addition, with the company now in control of manufacturing, it will enhance margins. So in the coming months, RSLS is worth watching.
Market Reaction:
On Monday, RSLS stock fell 2.13% at $4.59 with more than 15.35 million shares, compared to its average volume of 6.32 million shares. The stock had moved within a range of $4.5000 – 5.8400after opening the trade at $5. Over the past 52-week, the stock has been trading within a range of $0.6600 – 10.7700.
