Vivos Therapeutics (NASDAQ:VVOS) announced an expansion of its strategic marketing and distribution alliance with Rebis Health into two additional locations in Colorado.
The company said initial data from the partnership showed that patients prefer Vivos CARE as a treatment for obstructive sleep apnea (OSA) nearly two to one over continuous positive airway pressure (CPAP) therapy, the current standard of care treatment.
The treatment, which aims to rehabilitate airway function, has been shown to reduce or eliminate OSA symptoms in as little as 12 months.
Rebis Health has begun educating all its OSA patients on Vivos CARE as an alternative to CPAP.
Vivos reported an average per-case revenue of over $4,700 under its alliance model, with gross margins in the 70% range. The company expects increased revenue growth and profitability as it expands the model.
“We’ve worked diligently over the first months of our alliance with Rebis Health to refine and optimize it as well as gain further validation of the exciting potential for Vivos as we roll out this new model on a national scale,” Vivos CEO Kirk Huntsman said in a statement.
“Our achievements with Rebis have been in line with our expectations, and we see a lot of room for further improvement in terms of revenue growth and margin expansion as patients continue to accept Vivos treatment options.”
Accelerating growth
The new Colorado locations for the partnership in Highlands Ranch and Westminster are expected to be operational by April.
The company is also evaluating partnerships or acquisitions among the 2,500 accredited sleep medicine groups in major US cities, aiming to accelerate revenue growth and achieve cash flow-positive operations.
“These initial positive developments are leading us to accelerate our exploration of additional strategic alliances or outright acquisitions of sleep centers through which we can market our products and services,” Huntsman said.
“We view this new business model as a critical inflection point in the history of Vivos and for OSA treatment overall. No longer will patients just blindly accept CPAP as their life sentence for being diagnosed with OSA. Patients now know they have real choices and very good alternatives.”
Vivos shares had gained 3.2% on Monday morning.