Summary: Vivos Therapeutics Inc, a maker of oral appliance therapy for obstructive sleep apnea, has entered into a strategic marketing and distribution alliance with a Colorado-based sleep treatment provider. This marks a shift in Vivos’ distribution model. The alliance is supported by a $7.5 million investment from New Seneca Partners Inc, enhancing Vivos’ financial position and enabling the launch of this and future alliances.
Key Takeaways:
- Vivos Therapeutics has formed a strategic marketing and distribution alliance with a sleep treatment provider in Colorado, marking a significant pivot in its distribution model for oral appliances.
- A $7.5 million equity investment from New Seneca Partners Inc enhances Vivos’ cash reserves and stockholders’ equity, supporting the launch of this new alliance and potential future collaborations.
- The alliance will offer a full spectrum of OSA treatments, including CPAP machines and Vivos’ FDA-cleared oral medical devices, with operations beginning in July at two Colorado sleep centers.
Vivos Therapeutics Inc, a maker of oral appliance therapy for the treatment of obstructive sleep apnea (OSA), announced the execution of a strategic marketing and distribution alliance with an operator of multiple sleep testing and treatment centers in Colorado.
This alliance, which Vivos hopes will be the first of a series of similar alliances across the country, marks a pivot in Vivos’ marketing and distribution model for its oral appliances.
Under the new alliance, Vivos and the sleep center operator have agreed to collaborate to offer OSA patients a full spectrum of evidence-based treatments, such as continuous positive airway pressure machines, and Vivos’ FDA-cleared CARE oral medical devices, oral appliances, and additional adjunctive therapies and methods.
The program will commence in two existing sleep treatment centers in Colorado, with operations expected to begin in July. Vivos’ sleep center collaborator is presently rebranding its name in light of the new alliance, and Vivos expects to share further details in the near future.
Financial Boost from Seneca Partners
Vivos also announced the related closing of a $7.5 million equity growth investment from New Seneca Partners Inc, a private equity sponsor based in Southfield, Mich. This investment bolsters Vivos’ cash on hand and stockholders’ equity and will facilitate the launch of the new strategic alliance and potentially other similar alliances.
“We cannot overstate the importance of this alliance to Vivos and its future, coupled with a validating private equity-led investment from Seneca. Over the last several years, peer-reviewed studies have confirmed our longstanding belief that Vivos has the most effective, safe, and potentially lasting non-surgical solution for all severities of OSA in adults that does not require lifelong nightly intervention,” says Kirk Huntsman, Chairman and CEO of Vivos, in a release. “This was further validated by recent unprecedented FDA clearances Vivos has received, including the only FDA clearance for an oral medical device to treat severe OSA in adults.”
The new marketing and distribution strategic alliance is based on a revenue-sharing model between Vivos and the sleep center operator. Subject to certain conditions, Seneca will participate in Vivos’ net cash flow allocation from the alliance up to an agreed-upon amount as partial consideration for its management advisory services to Vivos.
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