ReShape Lifesciences® Signs Exclusive Distribution Agreement with Recon Supply to Access the VA and DoD Markets

Rhea-AI Summary

ReShape Lifesciences (RSLS) has signed an exclusive U.S. distribution agreement with Recon Supply to distribute its product portfolio across VA and DoD healthcare systems. The agreement covers ReShape's STIMEL-03 neuromuscular rehabilitation device and Lap-Band® 2.0 FLEX weight loss solution, targeting over 18 million veterans and active military personnel. Recon Supply, which has grown 113% year-over-year since 2022, currently distributes to 102 VA Medical Centers through various federal contracts including DAPA, FSS, and ECAT. The partnership aims to expand access to ReShape's FDA-cleared medical technologies for veterans and military personnel recovering from stroke, injury, surgery, or struggling with obesity.

Positive

• Strategic partnership provides access to 18 million potential patients in VA and DoD healthcare systems
• Partnership with Recon Supply includes access to established federal contracts (DAPA, FSS, ECAT)
• Distribution network covers 102 VA Medical Centers nationwide
• Partner Recon Supply demonstrates strong growth with 113% year-over-year increase since 2022

Negative

• None.

Insights

Healthcare Business Analyst

ReShape secures exclusive VA/DoD distribution partnership, gaining access to 18M potential patients through Recon Supply's established network.

This exclusive distribution agreement positions ReShape Lifesciences to significantly expand its market reach by tapping into the Veterans Administration and Department of Defense healthcare systems, which serve over 18 million U.S. veterans and active military personnel. The partnership leverages Recon Supply's existing infrastructure and contracts including Distribution and Pricing Agreement (DAPA), Federal Supply Schedule (FSS), and Electronic Catalog (ECAT) - critical access points that typically require extensive navigation of federal procurement processes.

The agreement encompasses ReShape's entire product portfolio with emphasis on two key offerings: the STIMEL-03 neuromuscular rehabilitation device and the Lap-Band® 2.0 FLEX. These products address specific healthcare challenges prevalent in the veteran and military communities - rehabilitation needs following service-related injuries and obesity management. This targeted approach shows strategic alignment between ReShape's solutions and the specific needs of this patient population.

Recon Supply brings valuable credentials to this partnership, having demonstrated substantial growth with 113% year-over-year expansion since its 2022 relaunch. Their network now spans 102 VA Medical Centers nationwide. Importantly, Recon's team composition of primarily veterans and veteran spouses provides cultural competency and insider understanding of the VA/DoD systems, potentially accelerating adoption of ReShape's technologies within these traditionally complex healthcare networks.

This agreement represents a strategically efficient market entry approach, allowing ReShape to access a large, consolidated healthcare system through a single partnership rather than negotiating individual hospital contracts across the fragmented private healthcare sector.

Recon Supply Named Exclusive U.S. Distributor of ReShape’s STIMEL-03, Lap-Band® 2.0 FLEX, and Full Product Portfolio to Reach U.S. Veterans and Active-Duty Service Members

IRVINE, Calif., June 12, 2025 (GLOBE NEWSWIRE) -- ReShape Lifesciences® (Nasdaq: RSLS), the premier physician-led weight loss and metabolic health solutions company, today announced the signing of an exclusive U.S. distribution agreement with Recon Supply. Through this new strategic partnership, Recon Supply will distribute ReShape’s cutting-edge portfolio, including the STIMEL-03 neuromuscular rehabilitation device, the next-generation Lap-Band® 2.0 FLEX, and the full range of ReShape products, across the Veterans Administration (VA) and Department of Defense (DoD) healthcare systems. This collaboration will expand access to proven, life-changing treatments for more than 18 million U.S. veterans and active military personnel.

“This agreement with Recon Supply marks a pivotal step forward in ReShape’s mission to expand access to innovative medical technologies that improve lives,” stated Paul F. Hickey, President and Chief Executive Officer of ReShape Lifesciences. “Through Recon’s extensive footprint across the VA and DoD healthcare systems, we look forward to bringing our FDA-cleared STIMEL-03 system, a cutting-edge neurorehabilitation platform that is transforming clinical care with real-time EMG biofeedback and personalized electrical stimulation, to veterans and military personnel recovering from stroke, injury, or surgery. Additionally, the Lap-Band® 2.0 FLEX, our next-generation, minimally invasive weight loss solution, offers a safe, adjustable option for individuals struggling with obesity. Together, these technologies reflect our commitment to delivering high-impact, clinically proven solutions to patients in need, including those who have served our country.”

“Partnering with ReShape Lifesciences aligns perfectly with our mission to deliver innovative, life-changing medical solutions to those who have served our country,” added Steve Clark, Chief Executive Officer of Recon Supply and a U.S. Marine Corps veteran. “With established access to VA and DoD facilities through our Distribution and Pricing Agreement (DAPA), Federal Supply Schedule (FSS), and Electronic Catalog (ECAT) contracts, this agreement allows us to expand the reach of ReShape’s most impactful technologies—including the STIMEL-03 rehabilitation system and the Lap-Band® 2.0 FLEX. These solutions are well-suited to the complex needs of the veteran and active-duty populations we serve. Since relaunching in 2022, Recon Supply has grown over 113% year-over-year and now distributes to 102 VA Medical Centers nationwide, with a team made up almost entirely of veterans and veteran spouses. We are proud to partner with ReShape to bring these vital solutions to the men and women who have sacrificed for our country.”

About Recon Supply
Recon Supply is a trusted distributor of medical products and technologies, specializing in providing high-quality solutions to federal agencies and healthcare systems. As a Service-Disabled Veteran-Owned Small Business (SDVOSB), Recon Supply is dedicated to delivering the most innovative medical technologies while actively supporting the veteran community through hiring initiatives. With a focus on excellence and reliability, Recon Supply is committed to enhancing patient care through innovative partnerships. For more information on Recon Supply, visit www.Recon-Supply.com

About ReShape Lifesciences®
ReShape Lifesciences® is America’s premier weight loss and metabolic health-solutions company, offering an integrated portfolio of proven products and services that manage and treat obesity and metabolic disease. The FDA-approved Lap-Band® System provides minimally invasive, long-term treatment of obesity and is an alternative to more invasive surgical stapling procedures such as the gastric bypass or sleeve gastrectomy. The investigational vagal neuromodulation system utilizes a proprietary vagus nerve block and stimulation technology platform for the treatment of type 2 diabetes and metabolic disorders. The Obalon® balloon technology is a non-surgical, swallowable, gas-filled intra-gastric balloon that is designed to provide long-lasting weight loss. For more information, please visit www.reshapelifesciences.com.

Forward-Looking Safe Harbor Statement
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those discussed due to known and unknown risks, uncertainties, and other factors. These forward-looking statements generally can be identified by the use of words such as "expect," "plan," "anticipate," "could," "may," "intend," "will," "continue," "future," other words of similar meaning and the use of future dates. Forward-looking statements in this press release include statements about the expectations regarding the distribution arrangement of Recon Supply. These and additional risks and uncertainties are described more fully in the company's filings with the Securities and Exchange Commission, including those factors identified as "risk factors" in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. We are providing this information as of the date of this press release and do not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise, except as required by law.

CONTACTS
ReShape Lifesciences Investor Contact:
Paul F. Hickey
President and Chief Executive Officer
949-276-7223
ir@ReShapeLifesci.com

Investor Relations Contact:
Rx Communications Group
Michael Miller
(917)-633-6086
mmiller@rxir.com

FAQ

What products will ReShape Lifesciences (RSLS) distribute through the VA and DoD agreement?

ReShape will distribute its STIMEL-03 neuromuscular rehabilitation device, Lap-Band® 2.0 FLEX weight loss solution, and full product portfolio through the agreement.

How many VA Medical Centers does Recon Supply currently serve?

Recon Supply currently distributes to 102 VA Medical Centers nationwide.

What is Recon Supply's growth rate since 2022?

Recon Supply has grown over 113% year-over-year since relaunching in 2022.

How many potential patients could ReShape Lifesciences reach through this VA and DoD agreement?

The agreement provides access to more than 18 million U.S. veterans and active military personnel.

What federal contracts does Recon Supply have for VA and DoD distribution?

Recon Supply has Distribution and Pricing Agreement (DAPA), Federal Supply Schedule (FSS), and Electronic Catalog (ECAT) contracts.