Matthew Nachtrab letter to CEO of ReShape Lifesciences
$RSLS
To: Paul Hickey, CEO ReShape Lifesciences
From: Matthew Nachtrab, Shareholder of Reshape Lifesciences
Date: 2/15/2023
Re: ReShape Turnaround and Capitalization of Ozempic, Wegovy and Future Weightloss drug Media Attention
Congratulations on your new position as CEO of ReShape. ReShape is in the center of one the largest human problems of obesity with one of the top brands in medical solutions to weight loss. ReShape owns one of the most well-known weight loss devices and brands in the world, the Lap-Band, and it is exciting to see the company is continuing to innovate the devices with the new FDA approval request coming soon for Lap-Band 2.
ReShape has a comprehensive approach to weight loss with a digital platform, devices, and supplements and a great marketing and branding program. Lab-Band is a very well-known brand and valuable asset that can be leveraged to drive revenue in other products.
Here are my recommendations for the team:
1. Get lean to go big – Please use the $10M raised in the recent offering to help fund the turnaround of your great weight loss brand and device company. A clear plan needs to be laid out on how to cut costs and capitalize on the current market potential with rapid progress to cash flow break even. The cost structure needs to contemplate the reality of your current revenue and live within that for your expenses. The business must break the cycle of funding the business with offerings every few years and commit to surviving on cashflow so shareholders can stay invested for the long term.
2. Weight loss Drug Capitalization - The weight loss market is experiencing the largest amount of attention ever with Ozempic and Wegovy. This is a huge opportunity for ReShape. Right now, there are insurance coverage issues that ReShape can come in to help solve. Millions of Americans are going to their doctors right now to ask for these drugs. Additionally, when people find the medication does not work for them, you can be there to provide permanent proven weight loss products. A very clear and concise value prop and a cheeky and low cost media plan can be created to drive the media attention to you. Interviewing medication patients about the drawbacks, weird feelings, odd face, risks of long term effects, and etc., would drive great input into this campaign
I am excited for your new tenure as CEO of ReShape Lifesciences and I believe your team can rebuild and create a $100m plus market cap company with some austerity measures, leveraging assets currently owned, and capitalizing on the medicated weight loss secular trend to generate lead flow and massive revenue growth. I am willing to discuss this and advise in any way I can help.
Source:
https://www.sec.gov/Archives/edgar/data/1427570/000089706923000173/reshapenatrab13dwen.htm