Allurion links up with Compute Health Acquisition to become publicly listed company
Allurion Technologies and Compute Health Acquisition have entered into a definitive business combination agreement that will result in Allurion becoming a publicly listed company. Upon closing, the combined company will be named Allurion Technologiesand its common is expected to be traded on the New York Stock Exchange under the symbol “ALUR”. The proposed transaction has been approved by the boards of directors of each of Compute Health and Allurion.
Allurion is tackling this unmet need by offering the world’s first full-stack weight loss platform. At the core of this platform is The Allurion Program, which combines the world’s first and only swallowable, procedure-less intragastric balloon for weight loss (the “Allurion Balloon”), a proprietary behaviour change programme, and the Virtual Care Suite (“VCS”), an artificial intelligence (“AI”)-powered digital therapeutic and remote patient monitoring solution.
“Allurion is just beginning its mission to end obesity around the world. With over 100,000 patients treated and counting, we have our sights set on touching the lives of the two billion people globally who are overweight,” said Dr Shantanu Gaur, Allurion Co-Founder and CEO. “By combining our revolutionary Allurion Balloon with a digital platform and behaviour change programme, we have created the world’s first and only full-stack weight loss platform. We look forward to investing this capital to fulfil our mission.”
The Allurion Balloon is designed to address various shortcomings of legacy gastric balloons. It is swallowed as a capsule and filled under the guidance of a health care provider without surgery, endoscopy or anaesthesia. The placement takes approximately 15 minutes during an outpatient visit. Approximately four months later, a patented ReleaseValve opens allowing the balloon to empty and pass out of the body naturally. The patient does not need to return to the doctor to have the balloon removed. The Allurion Balloon has demonstrated a favourable safety profile with minimal serious adverse events.
Through the Allurion VCS, providers can securely message their patients, conduct virtual telehealth visits, and monitor patient performance remotely with AI-powered analytics that integrate data from the Allurion App, Connected Scale, and Health Tracker. Through the Allurion App, patients can access Allurion’s proprietary behaviour change programme - a library of over 150 weight loss actions related to diet, nutrition, mental health, sleep and goal setting -in over 15 languages.
Allurion’s revenue growth has been fuelled by increasing utilization of The Allurion Program by existing providers and rapid geographical expansion. Allurion’s revenues in 2020, 2021, and 2022 were $20 million, $38 million, and $64 million, respectively. In 2022, the company continued its worldwide expansion with the launch of the Allurion Program in Canada, Mexico, India, Australia, and Brazil. In the US, Allurion has launched the AUDACITY trial, an open-label, pivotal study to evaluate the safety and efficacy of the Allurion Balloon plus Moderate Intensity Lifestyle Modification Therapy Program (or “MILMTP”) versus MILMTP alone in US patients.
“With our deep experience at the intersection of healthcare, technology, and data, we see Allurion as a breakthrough platform addressing and solving one of the largest unmet medical needs in the world,” said Omar Ishrak, Compute Health Chairman. “Allurion’s unique technologies together with its track record of consistent and exceptional growth truly differentiate it from other competitive attempts at weight loss. The company is uniquely positioned for long-term success in a massive addressable market.”
The proposed transaction includes a fully committed PIPE led by RTW Investments and a non-dilutive, synthetic royalty financing from RTW Investments that will close concurrently with the business combination.
“RTW is proud to support Allurion’s mission to end obesity as a lead equity investor in the PIPE, as well as provide complementary non-dilutive royalty financing that accelerates Allurion’s commercialization strategy,” said Dr Roderick Wong, Managing Partner and Chief Investment Officer of RTW Investments, LP. “We believe the company is well-positioned to compete in the weight-loss market and provide a much-needed tool for healthcare providers and their patients.”
The company will continue to be led by Dr Shantanu Gaur, Allurion’s Co-Founder and CEO, after the business combination. The expanded Board of Directors is expected to be co-chaired by long time Allurion investor Krishna Gupta of REMUS Capital and Omar Ishrak and include Nick Lewin, Chairman of Establishment Labs (NASDAQ: ESTA).
“We were the first institutional partner of Allurion more than a decade ago, and our conviction in the market opportunity, company, management, and revolutionary technology has only grown,” said Krishna Gupta, CEO of REMUS Capital. “The global opportunity to reliably drive safe and effective weight loss taps both medical and aesthetic needs of consumers and has unlimited potential. This transaction will accelerate Allurion’s path to becoming a global market leader in the weight loss space leveraging its digital DNA and cutting-edge science.”
There are two billion adults around the world who are overweight and 650 million adults with obesity. Among children and adolescents, obesity has increased tenfold during the past four decades. Importantly, most weight loss options are not delivering on expectations: 76% of patients are not fully satisfied by diet plans and 65% of patients fear complications related to more invasive techniques. While weight loss drugs have shown to be effective, they often need to be used for life at significant costs and can result in undesirable side effects. Both patients and providers are in need of clinically proven weight loss solutions that can scale globally and address these shortcomings.