Australian medical technology company Rhinomed (ASX: RNO) will soon be expanding distribution of its proprietary nasal and respiratory solution, Mute, in the United States.
The US is currently the world’s leading healthcare market valued at around US$70 billion by industry market analysts.
The emergent manufacturer said it has received an “initial opening order” of 6,000 units as part of a newly-signed distribution arrangement with one of the US’s largest pharmacy retailers, “with more expected to follow.”
The newly signed distribution agreement means Rhinomed’s Mute product will be stocked on the shelves of an additional 3,000 pharmacies across the US, thereby supplementing its existing activity in the country.
The company said that this agreement is expected to grow its global store base to over 10,000 stores across three continents.
Improving commercials with better breathing
Despite remaining tight-lipped about the identity of its new US-based retailer, Rhinomed already has an agreement in place with Walgreens for the sale of Mute, signed last year.
Mute is currently being sold at over 4,000 Walgreens pharmacies and drugstores in the US following a successful trial program in 2016 and hitting store shelves in August last year.
Further afield, Mute is also available in Australia through the Sigma and Symbion pharmacy networks and through Boots pharmacies in the UK. Its US distribution network is probably the most robust of all, with Walgreens, GNC, Bartells Drug Stores, Discount Drug Mart and limited CVS stores all currently stocking Mute in various capacities across the US.
Much like other deals in the biotech sector (especially those related to US markets), Rhinomed has decided to keep its card close to its chest by keeping many of the commercial details confidential at this time including the identity of “one of America’s largest pharmacy retailers” and the exact pricing details underpinning the deal.
However, it did reveal that specific details regarding the identity of the retailer will be announced, “in line with stock appearing on US store shelves by July/August.” Also, Rhinomed said that revenues from this new retail channel are not expected to impact the business until Q2 of the 2019 financial year at the earliest.
As a means of tempering boisterous analyst expectations Rhinomed added that it is “too early to accurately forecast the likely long-term impact of revenues from the agreement on Rhinomed financial results.”
Alleviating sleep issues with patented technology
Rhinomed has developed a patented nasal technology platform that seeks to “radically improve the way people breathe, sleep, maintain health and take medication.”
More specifically, Rhinomed is currently promoting two different products, based on closely-related technologies: the Turbine – a nasal dilator designed to assist breathing during aerobic exercise, and Mute – a nasal technology that has been designed to improve quality of sleep by easing breathing issues for patients.
Rhinomed claims that 78% of users reported better breathing during sleep, while three-quarters of users reported a reduction in snoring.
“This is a critical step in our strategy of ensuring that our retail footprint increases in the significant American market. Rhinomed is continuing to demonstrate that Australian companies are not only great innovators but can also successfully commercialize innovation in one of the most competitive markets in the world – the North American Consumer Health market,” said Michael Johnson, CEO of Rhinomed.