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Weight loss device company Allurion has entered a business combination with special purpose acquisition company (SPAC) Compute Health to become a publicly listed company.

The proposed transaction with Compute Health is expected to value the combined company at about $500 million, according to a Bloomberg report. The shares will trade on the New York Stock Exchange.

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Founded in 2009, Natick, Mass.-based Allurion is the developer of a weight loss digital platform that accompanies an inflatable device. The gastric balloon is swallowed in the form of a capsule and is designed for a one-time application. It can be inserted in a fifteen-minute appointment and dissolves after four months.

Allurion’s weight loss digital platform includes a behaviour change program app, and a Virtual Care Suite which uses AI to provide remote patient monitoring.

“The balloon helps you feel full, but the digital platform is keeping track of data and provides that link between patient and provider,” Allurion co-founder and CEO Shantanu Guar told Medical Device Network. “The behaviour change program then creates a cohesive experience that allows the patient to change their lifestyle – that’s what’s unique about our platform.”

The app contains accessibility across 15 languages and has aided Allurion in covering over 100,000 patients across 60 countries. In a population study, users lost an average of 14% of total body weight after just four months.

Allurion’s balloon technology has the potential to become a pillar of weight loss treatment in the future. Global Data predicts that gastric balloon revenue in the UK alone will be $4.5m by 2024. The company’s launch in Brazil was particularly noteworthy where the weight loss surgery market is one of the biggest globally, with a projected revenue of $6.3m in 2025 according to Global Data.

The public listing will include fully committed Private Investment in Public Equity (PIPE) led by RTW Investments, will help raise capital and provide partnerships for the company and adds to a previous $34m raised in venture financing.

Guar said that the investment will be directed into transforming the balloon into wider medical uses, such as stomach sensors or a drug delivery device. Most importantly, funds will go to expanding the capacity of the digital platform.

“Anyone who’s going through bariatric surgery or taking a weight loss drug is going to need a behaviour change and a digital platform. I see our balloon as being one of the therapeutic options, but at the centre [of weight-loss therapy], I see our software and that’s what we want to build over the next five to 10 years, either in partnership with some of the other players in the industry or by ourselves.”