Australian nasal and respiratory technology company Rhinomed has entered into a new distribution agreement with, and received an initial order for stock from a new retailer. The retailer is one of America’s largest pharmacy retailers.
These purchase orders confirm that the company’s anti-snoring nasal dilator Mute will be stocked on the shelves of an additional 3,000 pharmacies across the United States. This agreement grows Rhinomed’s global store base to over 10,000 stores across three continents.
There are limitations under the order arrangements on the disclosure that Rhinomed can currently provide, but it can provide the following information:
- Details regarding the identity of the retailer will be announced in line with stock appearing on shelf in the USA in July/August.
- The company has now received the initial opening order of 6,000 units and expects more orders to follow.
- Revenues from this new retail channel are not expected to impact the business until FY19 Q2 at the earliest.
- The agreement has no fixed term and can be terminated by either party.
- Pricing details remain confidential.
Rhinomed CEO Michael Johnson says in a release, “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.”
While the supplier agreement and receipt of an initial order creates potential new market opportunities for Rhinomed and increases the retail reach of the product in the USA it is not an assurance of ongoing or future retail sales. It is too early to accurately forecast the likely long term impact of revenues from the agreement on Rhinomed financial results.