Devices & Diagnostics

ReShape Medical raises $38M for nonsurgical, balloon device that works as an alternative to bariatric surgery

ReShape Medical’s alternative to bariatric surgery with a procedure that inserts two balloons into an obese person’s stomach has raised $38 million to commercialize the technology.

There’s a smorgasbord of obesity treatments on the market. Orange County startup ReShape Medical just closed out a weighty funding round to commercialize one more: A nonsurgical alternative to bariatric surgery that shows some serious promise.

Its weight loss procedure involves inserting two balloons into the stomach so they fill up space, making the patient feel full much faster. ReShape Medical just closed out a $38 million Series D for the device, which was approved by the Food and Drug Administration this July. Certain American physicians already are offering this procedure; the new funding round is meant to expand its penetration across the obesity-ridden U.S.

The procedure’s meant for obese people with body mass indexes that range between 30 and 40, and aren’t losing weight from just diet and exercise alone. It’ll work for patients who either don’t qualify for, or don’t want, bariatric surgery. The ReShape device is inserted endoscopically, during an outpatient procedure, and stays in the stomach for six months.

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Its “integrated dual balloon system” was evaluated in a pivotal trial that showed the patients using the ReShape device lost 2.3 times more weight than those just undergoing diet and exercise coaching only. The device has been available in Europe for some time; a study on its commercial use there showed that ReShape patients lost 47 percent of their excess weight and maintained 98 percent of their weight loss a year later.

“The outlook for the ReShape procedure has never been more promising, with the recent FDA approval followed by this demonstration of support by our investor partners,” CEO Richard Thompson said in a statement. “With this momentum and the positive feedback we are receiving from physicians across the country, the Company is in a strong position to make the ReShape procedure available to U.S. patients in need of a non-surgical option for weight loss and to achieve global leadership in non-surgical obesity treatment in the future.”

 

The round was led by HealthCor Partners Management; other investors include Endeavour Vision SA, SV Life Sciences, New Leaf Venture Partners, U.S. Venture Partners and Venture Investors.