Medical device company Oventus Medical (ASX: OVN) has launched a further three clinical delivery sites in the US as part of its “lab in lab” business model while confirming that its initial five sites generated first revenues in December 2019.
Three new sites are now operational in South Carolina, Illinois and Texas, with all three expected to supplement the company’s growth this year.
By the end of last year, the company’s deal pipeline increased from $20 million to more than $33 million, with further upside on the horizon as Oventus expects to secure more agreements across its key markets over the coming months.
“We are very pleased that despite seasonal factors due to the holiday period, the number of sites online has doubled in the last month and revenue growth is expected to accelerate quarter on quarter through calendar 2020,” said Dr Chris Hart, chief executive officer of Oventus.
“The launch program has been redesigned and streamlined to increase launch efficiency and reduce lead times to revenue, which along with a hub and spoke roll out approach in discrete geographic regions is reducing costs to launch and capital requirements,” said Mr Hart.
Soothing sleep apnoea
Oventus claims it is an “obstructive sleep apnoea treatment innovator” that markets a range of sleep apnoea products under the O2Vent Optima brand. O2Vent is an oral device that can be 3D printed with durable nylon and customised to fit each individual.
Moreover, Oventus has developed proprietary “airway technology” that improves breathing ability and mitigates problems during sleep.
The company’s O2Vent airway channel has been incorporated into each device that enables unobstructed air to flow through the device to the back of the throat, bypassing common sites of obstruction such as the nose, tongue and soft palate.
Oventus makes a range of products that improve comfort during sleeping for patients suffering from various ailments including sleep apnoea and snoring, as well as secondary effects such as tooth decay and gum disease.
Demand and growth
In a regulatory filing last month, Oventus said it converted “significant increased demand” for its O2Vent sleep treatment platform and its lab in lab business model. The company had 36 sites contracted and 11 sites deployed with five more in the implementation phase.
In total, Oventus now has 14 operational sites out of a total of 36 the company has already contracted.
Another factor suggesting Oventus is experiencing growing demand is the fact that recently launched sites are scheduling patients within 30 days of launch, compared to 60 days for the first five sites launched last year.
In terms of product satisfaction, early data indicated that around 50% of patients move onto treatment over a 90-day period since their initial consultation as they proceed with insurance pre-authorisation and then rebook for treatment.
Oventus said it conducted 140 unique patient consultations in January while unit sales through the lab in lab program doubled from December to January.
This month, Oventus expects to achieve much higher sales after confirming that February’s patient bookings to date were more than double January’s unit sales.
In addition, Oventus is aiming to secure further agreements across its key markets over the coming months, as advanced negotiations with large regional and national sleep networks continue.
This news helped Oventus shares to rise 16% up to $0.46 in morning trade.