ReShape Lifesciences Inc. has purchased Apollo Endosurgery Inc.'s surgical product line, which includes an adjustable gastric band surgically installed around the stomach for weight loss, in a cash transaction of $17 million.
ReShape Lifesciences made an up-front payment of $10 million and also gave Apollo its intragastric balloon product line, which are inflatable medical devices placed into the stomach when diet and exercise have failed and surgery is not an option.
The remaining amount will be paid to Austin, Texas-based Apollo Endosurgery in yearly installments. Apollo Endosurgery will have the legal right to get back its surgical product line until San Clemente, Calif.-based ReShape Lifesciences either makes the full payment or raises $15 million through a qualified offering.
ReShape Lifesciences develops devices that use neuroblocking technology to treat obesity, metabolic diseases and other gastrointestinal disorders.
Cooley LLP was legal adviser to Apollo Endosurgery for the transaction, which closed Dec. 17.