Melbourne, Australia-based Rhinomed has continued to build its global presence over the quarter with significant progress being made across all business units, according to its most recent quarterly report.
Key highlights of the quarter included the growing demand for the company’s new Turbine design and strong early demand for the Mute snoring and sleep technology. Receipts from customers for the quarter were up $33,000 to $192,000. Revenues from the Australian pharmacy channel will be included during the next quarter.
The company can provide upgraded guidance that fiscal year 2016 will see higher growth in sales of both the Turbine technology and in particular Mute, coming off the back of significantly expanded global distribution.
The company accelerated its business development program during the quarter by attending SLEEP 2015 in early June followed by the 2015 BIO conference in Philadelphia. During the quarter 2013 Tour de France yellow jersey winner Chris Froome joined the company as Global ambassador for the Turbine technology. Chris wore the Turbine during his 2015 campaign and we are thrilled to congratulate Chris on his victory in this years Tour de France. The Turbine received significant press during the Tour and the company will be leveraging this in campaigns now, and over the next 12 months, to support both consumer and trade activities.
During the quarter the company continued to expand its Turbine global distribution footprint with the appointment of a new distributor in South Africa-Fit Sports Labs-and the appointment of VeloBrands as Turbine Distributor in the United Kingdom. Turbine has also received an initial order from cycling retailer Performance Inc. The Turbine is now available in 19 countries.
During the quarter the company commenced the Australian pharmacy roll out of its Mute Snoring and sleep technology. This began with the ranging of the product into the pharmacy networks in April. The company will continue to accelerate this roll out in the coming quarters through the appointment of a pharmacy sales force to support initial acceptance by major banner groups.
To complement this pharmacy roll out, the company has also appointed a representative who will focus on introducing the Mute technology to the Australian medical profession and in particular ENT surgeons, sleep specialists, dentists, and GPs with a focus on sleep issues.
In June, Rhinomed attended SLEEP 2015. It was Mute’s first international conference presence. The company also introduced the INPEAP (Intranasal Positive Expiratory Air Pressure) technology to the American sleep industry. INPEAP is currently the subject of a clinical trial at Monash Lung and Sleep Department, Monash Health, which commenced in early June. The trial will seek to demonstrate that the technology is an effective and well tolerated treatment for patients suffering from moderate sleep apnea.
The company also confirmed strong support from clinicians, ENT surgeons, and sleep dentists who identified a new opportunity for Mute to be used an adjunct to oral devices. By using the Mute to stent the nose and improve breathing, these specialists believe that they can improve the patient compliance rates with oral devices. The company will use this input to drive further clinical research.
During the quarter the company continued its preclinical work in the nasal delivery of sumatriptan. Further work in formulation is now being scoped following data that showed the platform is effective at delivering medication into the nasal mucosa. The company is now seeking to identify appropriate partners with strong experience in formulation. While this program is progressing slower than desired, the strong interest in the potential from prospective partners at the 2015Bio conference reinforced the value of this asset.
The company continued to invest heavily in R&D having spent over $1 million during the year in the development of a highly valuable Intellectual property portfolio. Since its initial position two and half years ago with a very small and tenuous IP portfolio, the company has now created a family of 56 patents in the nasal and respiratory area, of which 13 are granted. In addition, it has secured a further 60 design patents and have trademarks protecting our increasingly valuable Turbine and Mute brands.
Rhinomed’s strategy of creating a global business anchored on two global brands (Turbine and Mute) in the sport and exercise and sleep markets and pairing this to a compelling clinical program is on schedule together with Rhinomed’s strategy and commitment to becoming a successful global consumer health and medical technology company.
