ROCHESTER HILLS, Mich. - InfuSystem Holdings, Inc. (NYSE American: INFU), a prominent national health care service provider, has entered into an exclusive distribution agreement with ChemoMouthpiece, LLC, alongside its joint venture partner Sanara MedTech Inc. This partnership aims to provide the Chemo Mouthpiece®, an oral cryotherapy device, to cancer patients across the United States to combat oral mucositis, a common side effect of chemotherapy.
The Chemo Mouthpiece® has received FDA 510(k) clearance and is clinically validated to reduce the incidence and severity of oral mucositis. The American Medical Association has recently approved a CPT code for potential reimbursement for cryotherapy procedures using an oral cavity device, effective July 2024.
SI Healthcare Technologies, LLC, the joint venture between Sanara and InfuSystem, will be the exclusive distributor of the product kits in the U.S. The company intends to leverage InfuSystem's existing Oncology sales team, which currently services approximately 3,000 cancer centers, to market and distribute the Chemo Mouthpiece®. SI Technologies will purchase the kits at a fixed price from ChemoMouthpiece and pay a royalty on net revenues.
Sanara has invested $5 million for a 6.6% ownership stake in ChemoMouthpiece, and SI Technologies holds a purchase option for ChemoMouthpiece's U.S. business, including all related U.S. intellectual property, valid until January 31, 2029.
Oral mucositis affects an estimated 500,000 to 1,000,000 patients annually in the U.S., with a market size exceeding $600 million. The Chemo Mouthpiece® is designed to cool the entire oral cavity, thereby reducing chemotherapy flow and the risk of developing oral mucositis. SI Technologies believes this product could lead to significant cost reductions for oncology treatment centers while improving patient quality of life and allowing continued cancer therapy.
ChemoMouthpiece, LLC, the manufacturer of the device, is led by David Yoskowitz, who was motivated by his personal battle with Hodgkin's Lymphoma and the resulting oral mucositis. He developed the Chemo Mouthpiece® to offer a more effective solution than traditional ice chips for cooling the oral cavity during chemotherapy.
This news is based on a press release statement from InfuSystem Holdings, Inc. and does not include any speculative or opinion-based content.
In other recent news, InfuSystem Holdings, Inc. reported record-breaking revenues of $33.7 million for the second quarter of 2024, a 5.3% increase from the previous quarter and a 6.2% increase year-over-year. The company's adjusted EBITDA margin also improved to 18%. These developments are part of recent trends, with new partnerships and initiatives bolstering InfuSystem's Device Solutions and Patient Services sectors. The company's Oncology revenue grew by 9% due to increased treatment volumes and collection efforts, while Pain Management revenue increased by over 29% in Q2. However, Wound Care revenue decreased due to fewer placements of negative pressure pumps. InfuSystem reiterates its guidance of high single-digit growth and expects a high-teens adjusted EBITDA percentage for the year. The company's partnership with Smith+Nephew and the upcoming NOPAIN Act, which encourages physicians to prescribe non-opioid alternatives, are expected to drive future growth.
InvestingPro Insights
As InfuSystem Holdings, Inc. (NYSE American: INFU) forges ahead with its exclusive distribution agreement for the Chemo Mouthpiece®, the company's financial health and market performance are critical for investors monitoring its potential growth. According to recent data from InvestingPro, InfuSystem's revenue over the last twelve months as of Q2 2024 stands at $129.37 million, reflecting a solid revenue growth of 9.43%. This growth is indicative of the company's ability to expand its market reach and could be further bolstered by the new distribution agreement.
InvestingPro Tips suggest that InfuSystem is expected to be profitable this year, with analysts anticipating net income growth. This is particularly relevant as the company expands its product offerings with the Chemo Mouthpiece®. Additionally, InfuSystem operates with a moderate level of debt and has liquid assets that exceed its short-term obligations, providing a cushion for strategic investments such as the recent partnership with ChemoMouthpiece, LLC.
Investors may also take note of the company's gross profit margin, which stands at a healthy 50.6%, showcasing InfuSystem's ability to maintain profitability in its operations. For those interested in deeper financial analysis, InvestingPro offers additional tips and metrics, with a total of six more InvestingPro Tips available for InfuSystem that can help investors make more informed decisions. To explore these further, visit https://www.investing.com/pro/INFU.
As InfuSystem continues to innovate in the healthcare service industry, its financial metrics and the insights from InvestingPro provide a promising outlook for the company's future endeavors.
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