ReShape Lifesciences Signs Exclusive US Distribution Deal With Recon Supply For VA, DoD

ReShape Lifesciences has signed an exclusive U.S. distribution agreement with Recon Supply to distribute its medical device portfolio, including the FDA-cleared STIMEL-03 neuromuscular rehabilitation device and the Lap-Band 2.0 FLEX weight loss system, across the Veterans Administration and Department of Defense healthcare systems. This strategic partnership aims to expand access to ReShape's treatments to more than 18 million U.S. veterans and active military personnel, leveraging Recon Supply's established federal contracts and distribution to over 102 VA medical centers. The collaboration is seen as a pivotal step to enhance healthcare options for veterans and military service members recovering from stroke, injury, surgery, or struggling with obesity and metabolic disorders. Despite recent stock volatility and a significant decline in market capitalization over the past year, retail investor sentiment has turned bullish following the announcement. ReShape is also pursuing a merger with India’s Vyome Therapeutics, which will result in the company renaming as Vyome Holdings and trading under a new Nasdaq ticker. Financially, ReShape maintains a strong gross profit margin and holds more cash than debt, supporting its expansion efforts through this distribution deal.