Vivos Therapeutics (NASDAQ:VVOS) announced a strategic marketing and distribution alliance with a multi-center sleep testing and treatment operator in Colorado, together with a new $7.5 million equity investment from a private equity firm.
In a statement, Vivos said that the alliance marks a shift in its approach to distributing its advanced obstructive sleep apnea (OSA) treatments.
The alliance will offer OSA patients a range of treatments, including continuous positive airway pressure (CPAP) machines and Vivos’ FDA-cleared CARE oral medical devices.
Operations are set to begin in two Colorado sleep centers in July 2024, with further rebranding details forthcoming.
Additionally, Vivos has secured a $7.5 million equity investment from New Seneca Partners Inc, a private equity sponsor. The investment will support the launch of the Colorado alliance and future expansions, aiming to boost Vivos' revenue growth.
The alliance will serve as the initial launch of a scalable model for treatment options, Vivos CEO Kirk Huntsman said in a statement.
“(W)e believe this new model’s significantly higher gross profit per case and lower patient acquisition costs will be highly beneficial for our future results of operations,” Huntsman said.
“We believe this can scale relatively quickly and broaden our revenue channels, giving us the potential to drive our revenue growth.”
Michael Skaff, Managing Director of Seneca, expressed strong support for Vivos’ new model, emphasizing the long-term commitment and collaboration. “This investment reflects our belief in Vivos' ability to address OSA significantly and our commitment to this promising endeavor.”
The $7.5 million investment includes shares of common stock and warrants, granting Seneca observation rights on Vivos' Board of Directors and participation in the net cash flow from the alliance.