Dutch Allurion Clinic makes major contribution in growth
Allurion Technologies Inc, developer of an innovative gastric balloon capable of achieving permanent weight loss non-invasively, is listed on the New York Stock Exchange (NYSE: ALUR) as of today, August 2, 2023. For Allurion Clinic, primary provider of the technology in the Netherlands, founded by Dutch entrepreneur Nick van Lanschot and bariatric surgeon Edo Aarts, this marks the start of further growth in the Benelux region.
Allurion Technologies, founded by Dr. Sammy Levy and Dr. Shantanu Gaur, offers a solution for individuals with a BMI from 27 to 38 who are unable to lose weight long-term, do not qualify for surgery or do not want to go under the knife. With an ingestible gastric balloon that does not involve surgery, endoscopy or anesthesia, the company offers a non-invasive method by which clients lose an average of 10 to 15% of their body weight in 16 weeks. The method has since helped 100,000 people in 50 countries.
To bring the concept to the market in an accelerated manner, several international partnerships were established in the first years of existence. For the Benelux, hands were joined with experienced entrepreneur in the medical world, Nick van Lanschot, and bariatric surgeon, Edo Aarts. They founded the Allurion Clinic in 2020 as the primary provider of the weight loss method in the Netherlands. Since then, 1,400+ patients have been helped with the program, consisting of the gastric balloon, physician guidance, lifestyle coaches, bluetooth scales and health tracker. This makes the Allurion Clinic one of four key players in the growth of Allurion Technologies.
Nick van Lanschot on the IPO and growth: “The IPO marks an important milestone for the company and a way to reinforce Allurion’s mission to end obesity, with Edo and playing a major role in further realization in the Benelux. We see the IPO as the starting signal for further investments to make the product even better and help even more individuals with substantial and lasting weight loss. There is no shortage of growth opportunities. Overweight and obesity is unfortunately still a major problem. More than 25% of the global population is affected, and the number of obese children and adolescents has actually increased tenfold over the past four decades. With 64% of the population being overweight, the Netherlands is no exception to this “.
Dr. Edo Aarts on the gastric balloon: “I have placed many “traditional” gastric balloons and that is a drastic procedure, both in placing and removing the balloon. Thanks to Allurion’s balloon, the threshold for placement is much lower. With ‘normal’ weight loss, it takes at least one to two years to lose 10 to 15% weight – which is not sustainable for most people, hence the well-known ‘yo-yo’ effect. “
Rapid geographic expansion into the Benelux, as well as Canada, Mexico, India, Australia and Brazil, made Allurion Technologies’ revenues rise from $20 million in 2020, $38 million in 2021 and $64 million in 2022. On Aug. 2, the company will take the next step and enter the New York Stock Exchange. Shares are traded on the New York Stock Exchange under the symbol “ALUR.
Concurrently with the IPO, financing was raised through a private public equity investment (PIPE) led by RTW Investments and additional equity investments from former CEO and Chairman of Medtronic Omar Ishrak, former CEO of GE Jeff Immelt, Leavitt Equity Partners, Vice Chairman of the Naghi Group, Mr. Yasser Naghi, and existing Allurion investors including Novalis LifeSciences and Segulah Medical Acceleration and Medtronic. Finally, a loan was provided by a subsidiary of Fortress Investment Group and Chardan Equity.
About Allurion Technologies
Allurion Technologies was founded in 2009 by Dr. Sammy Levy and Dr. Shantanu Gaur, during their second year at Harvard Medical School. The company offers the first and only weight loss method that does not require surgery, endoscopy or anesthesia. Since its inception, the Allurion gastric balloon combined with professional nutrition and exercise support has helped over 100,000 clients worldwide with long-term weight loss. The method is offered in the Netherlands for €4,199 at Allurion Clinic in Hilversum as the primary provider and Kazem Aesthetics at Schiphol Airport in Amsterdam, Obesity Clinic IntoBalance in Bergen op Zoom, and Dutch Obesity Clinic (NOK) in Amsterdam, Velp, Gouda and Heerlen.
The Allurion method
Allurion uses a soft balloon placed in the stomach. Simply by swallowing the capsule, similar to a piece of bread, with water. A thin catheter is attached to the balloon, which fills the balloon with water once it reaches the right spot in the stomach. Then one of the clinic’s knowledgeable and experienced doctors checks the position with an X-ray.
The filled balloon is about the size of a grapefruit, filling part of the stomach and creating a feeling of fullness. Immediately after filling, this sends a signal to the brain that enough has been eaten, causing less food to be consumed during meals. After an average of 16 weeks, the balloon opens on its own, draining the water through the stomach, and the balloon leaves the body naturally.
During the 16-week course, clients receive support from nutrition and exercise experts to develop new healthy habits that can be continued after the balloon leaves the stomach. This promotes long-term weight loss.
Allurion clients will also have access to the Virtual Care Suite, a digital toolkit to monitor and manage weight loss. This includes the Allurion Connected scale to track changes in body composition and the Allurion Health Tracker to chart sleep and exercise. All data is continuously available in the Allurion App, allowing progress to be tracked in real time. The team can also be contacted via the app for questions and support. For those who prefer to use Apple Health or a Fitbit sports watch, the app offers integration for those as well.
Independent research shows that the weight of 95% of Allurion clients remained stable in the year following treatment.
