Ultra Pain Products, Inc. to Distribute
Company’s Pain Management Devices to DME Market Under a Private
Label in U.S.
NanoVibronix, Inc., (NASDAQ:
NAOV), a medical device company that produces the UroShield®,
PainShield® and WoundShield® Surface Acoustic Wave (SAW) Portable
Ultrasonic Therapeutic Devices, today announced that it has
expanded and replaced its original distribution agreement with
Ultra Pain Products, Inc. (“UPPI”). Under the terms of the new
agreement, which extend the term and increase minimum purchase
requirements, UPPI will be the exclusive distributor of privately
labeled PainShield® and PainShield® PlusTM devices to the Durable
Medical Equipment (DME) distribution sector of the healthcare
market in the United States.
Earlier this year, NanoVibronix officially phased out its
original PainShield® DV0057 - and associated hydrogel patches with
an updated version - the PainShield® 10-100-0008 – the PainShield®
Kit: PainShield®.
Consequently, NanoVibronix entered into a distribution agreement
with UPPI granting UPPI the exclusive right to sell the updated
PainShield® products to and through distributors within the DME
sector.
“Within a few short months after starting distribution of our
PainShield® products under our original agreement, UPPI was already
looking to exceed our minimum purchase requirements,” stated Brian
Murphy, CEO of NanoVibronix. “It is also worth noting that UPPI’s
robust DME channels of distribution seem to have delivered
exceptional results despite various challenges in the current
business environment stemming from the COVID-19 pandemic.”
“Moving from a more traditional distribution to a private label
arrangement is intended to better enable us to meet increased
demand for our product, while leveraging Ultra Pain Products’
extensive U.S. DME network and established billing capabilities
across workers’ compensation, motor vehicle, and private
insurance,” added Murphy. “By this new private label agreement, we
have expanded our revenue opportunity with UPPI, effectively
increasing what was an initial revenue target of $1.1 million over
two years to $7.8 million over three years. Just as important, we
continue to target additional markets outside of the DME segment
for our newly redesigned PainShield products, especially veterans’
facilities and the Department of Justice, as well as other
specialty segments. The success and efficacy of the new PainShield
has increased interest from new and existing distributors, as it
has been shown to provide opioid-free pain relief for a wide
variety of applications, administered at home, at a time when the
need has never been greater for socially distanced administration.
PainShield enables consumers to relieve pain while minimizing
visits to the doctor or pain clinics, which is critical and
necessary under social distancing restrictions. We are optimistic
that this increased interest will result in increased sales.”
Under the terms of the three-year agreement, the Company’s
PainShield® and PainShield® Plus TM will be sold solely within the
domestic DME channel by Ultra Pain Products, Inc. under a private
label through its U.S. distributor network. Additionally, UPPI is
required to pay an up-front payment to NanoVibronix for the custom
design of the privately labeled products and to meet quarterly and
annual minimum purchase requirements in order to retain exclusive
distribution rights within the territory. The company expects the
initial sales to begin in the second quarter of 2021.
PainShield is an ultrasound device, consisting of a reusable
driver unit and disposables, which includes a proprietary
therapeutic transducer and cover adhesive. PainShield delivers a
localized ultrasound effect to treat pain and induce soft tissue
healing in a targeted area, while keeping the level of ultrasound
energy at a safe and consistent level. Its range of applications
includes acute and chronic pain resolution through its many
mechanisms of action. PainShield can be used by patients at home,
work, or in a clinical setting. Most patients use PainShield even
while the patient is sleeping. Patient benefits include ease of
application and use, faster recovery time, high compliance, and
increased safety and efficacy over existing devices that rely on
higher-frequency ultrasound.
The company recently introduced its patent pending, PainShield
Plus, which expands on the original technology, essentially
doubling the surface area that can be treated for pain in the same
amount of time. The devices provide an effective solution for
avoiding opioid treatments and support social distancing by
equipping patients to receive therapy independently in the comfort
and safety of their own homes.
About NanoVibronix, Inc.
NanoVibronix, Inc. (NASDAQ: NAOV) is a medical device company
headquartered in Elmsford, New York, with research and development
in Nesher, Israel, focused on developing medical devices utilizing
its patented low intensity surface acoustic wave (SAW) technology.
The proprietary technology allows for the creation of low-frequency
ultrasound waves that can be utilized for a variety of medical
applications, including for disruption of biofilms and bacterial
colonization, as well as for pain relief. The devices can be
administered at home without the assistance of medical
professionals. The Company’s primary products include PainShield®,
UroShield® and WoundShield®, all of which are portable devices
suitable for administration at home without assistance of medical
professionals. Additional information about NanoVibronix is
available at: www.nanovibronix.com.
Forward-looking Statements
This press release contains “forward-looking statements.” Such
statements may be preceded by the words “intends,” “may,” “will,”
“plans,” “expects,” “anticipates,” “projects,” “predicts,”
“estimates,” “aims,” “believes,” “hopes,” “potential” or similar
words. Forward-looking statements are not guarantees of future
performance, are based on certain assumptions and are subject to
various known and unknown risks and uncertainties, many of which
are beyond the Company’s control, and cannot be predicted or
quantified, and include, among others, statements regarding
projected sales of PainShield® and PainShield® Plus to UPPI and
others; consequently, actual results may differ materially from
those expressed or implied by such forward-looking statements. Such
risks and uncertainties include, without limitation, risks and
uncertainties associated with: (i) the geographic, social and
economic impact of COVID-19 on the Company’s ability to conduct its
business and raise capital in the future when needed, (ii) market
acceptance of our existing and new products or lengthy product
delays in key markets; (iii) negative or unreliable clinical trial
results; (iv) inability to secure regulatory approvals for the sale
of our products; (v) intense competition in the medical device
industry from much larger, multinational companies; (vi) product
liability claims; (vii) product malfunctions; (viii) our limited
manufacturing capabilities and reliance on subcontractor
assistance; (ix) insufficient or inadequate reimbursements by
governmental and/or other third party payers for our products; (x)
our ability to successfully obtain and maintain intellectual
property protection covering our products; (xi) legislative or
regulatory reform impacting the healthcare system in the U.S. or in
foreign jurisdictions; (xii) our reliance on single suppliers for
certain product components; (xiii) the need to raise additional
capital to meet our future business requirements and obligations,
given the fact that such capital may not be available, or may be
costly, dilutive or difficult to obtain; (xiv) our conducting
business in foreign jurisdictions exposing us to additional
challenges, such as, e.g., foreign currency exchange rate
fluctuations, logistical and communications challenges, the burden
and cost of compliance with foreign laws, and political and/or
economic instabilities in specific jurisdictions; and (xv) market
and other conditions. More detailed information about the Company
and the risk factors that may affect the realization of
forward-looking statements is set forth in the Company’s filings
with the Securities and Exchange Commission (SEC), including the
Company’s Annual Report on Form 10-K and its Quarterly Reports on
Form 10-Q. Investors and security holders are urged to read these
documents free of charge on the SEC’s web site at:
http://www.sec.gov. The Company assumes no obligation to publicly
update or revise its forward-looking statements as a result of new
information, future events, or otherwise, except as required by
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20201211005092/en/
Investor Contacts: NanoVibronix, Inc. Brian Murphy
bmurphy@nanovibronix.com (630) 338-5022 Or: Brett Maas, Managing
Principal, Hayden IR, LLC brett@haydenir.com (646) 536-7331
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