Australian medtech company Oventus (ASX: OVN) is surging ahead with its plans to expand into the United States, having reached an agreement with healthcare provider Aeroflow Healthcare for Oventus’ Sleep Treatment Platform and consumables.
The partnership will see Aeroflow offer Oventus products under subcontracts which will initially be introduced in the Southeastern States before being rolled out nationally.
“Oventus and Aeroflow are aligned through our ambitious growth targets and shared interest in providing the best available care to patients,” said Oventus CEO, Chris Hart.
“Our common targets and values make us great growth partners.”
Accessing the world’s largest commercial healthcare market has been a long-time goal for Oventus which has made significant strides in the past 12 months, having secured Food and Drug Administration (FDA) approval for their flagship O2Vent® platform in September 2019.
O2Vent is the only FDA cleared oral appliance for obstructive sleep apnoea (OSA) which reaches gold-standard continuous positive airway pressure (CPAP) without the use of a facemask. Oventus’ plans however are even more ambitious in coming years as the medtech company seeks to advance the O2Vent product range to connect wirelessly to CPAP machines by 2022.
Although it is still in its first generation, Oventus views the market for O2Vent as “low hanging fruit” based on the number sufferers that are dissatisfied with current CPAP technology.
The $2 billion addressable market in the United States is notably more accessible via this partnership with Aeroflow given Oventus have successfully marketed their product in Australia where, according to Sleep Health Foundation Australia, more than 750,000 people suffer from OSA.
“We are pleased to partner with Oventus as we feel the O2Vent Airway Technology will offer something unique that our patient and clinician community has been unable to access before now,” said Aeroflow CEO, Casey Hite.
“It is a compelling solution for patients that cannot tolerate CPAP or don’t desire it as a treatment option.”
Shares in Oventus responded well to news of their new United States distribution partners with OVN shares reaching a high of $0.70 in morning trade, a rise of 6.87% on the previous day’s close of $0.655.