Vyome Therapeutics, a biotech company backed by Manipal group chief Ranjan Pai and deep tech venture fund Navam Capital, is set to go public in the US through a three-part transaction, including a reverse merger with California-based Reshape Lifesciences, according to a statement.
Reshape Lifesciences, a Nasdaq-listed weight loss solutions company, will merge with Vyome Therapeutics, a clinical-stage company focusing on immuno-inflammatory and rare diseases, in an all-stock transaction. Additionally, Pai, along with investors Remus Capital and Iron Pillar, will invest at least $7.3 million in the merged entity through a private placement, with the potential for increased investment to close concurrently with the merger. Vyome plans to use the capital raised to expand and enhance its pipeline of immuno-inflammatory assets.
“We have a very promising pipeline with potential near-term catalysts treating unmet rare and immune-inflammatory diseases,” said Shiladitya Sengupta, cofounder of Vyome.
Separately, Reshape Lifesciences has entered into an agreement with Pune-based medical devices maker Biorad Medisys to sell all of its assets and liabilities for $5.16 million in cash.
Under the terms of the merger agreement, unanimously approved by the boards of directors of both companies, existing Reshape stockholders will own approximately 11.1% of the combined company immediately following the closing of the merger, subject to adjustment based on Reshape’s actual net cash at closing compared to a target net cash amount of $5 million.
Upon closing, the combined entity will be renamed Vyome Holdings Inc. and its common stock will continue to trade on Nasdaq under the new ticker symbol “HIND.”
As part of this transaction, Vyome has also appointed former US ambassador to India Frank Wisner to its board of directors. “We have no debt and a clean capital structure and are positioning Vyome for success in the public markets. We intend to continue addressing the unmet needs of patients suffering from immuno-inflammatory diseases and building a broader platform that leverages our comparative advantage in the US-India innovation corridor,” said Krishna K. Gupta, current director of Vyome. Gupta will be appointed chairman of the merged company.
Vyome Therapeutics, founded in 2010 as a research laboratory startup in Delhi, also counts Kalaari Capital and the Mariwala family’s Sharrp Ventures among its investors.
