SAN FRANCISCO - Tivic Health Systems Inc. (NASDAQ:TIVC), a company specializing in bioelectronic medicine, has announced a partnership with Fletcher Spaght (FSI), a healthcare growth strategy firm. The collaboration aims to refine the commercial strategy for Tivic Health's non-invasive cervical vagus nerve stimulation (ncVNS) technology.
Amidst a growing vagus nerve stimulation market, projected by Polaris (NYSE:PII) Market Research to reach $21.3 billion by 2030, Tivic Health is focusing on ncVNS, a segment expected to expand at a 35% compound annual growth rate according to IDTechEx. This partnership with FSI is set to leverage the firm's expertise in guiding Tivic Health's market entry strategies and clinical study plans.
FSI has initiated a comprehensive market assessment for ncVNS, exploring about 30 potential medical applications across various diseases. The firm's partner, Bill Sigona, expressed enthusiasm for bringing ncVNS to market and improving patient healthcare.
Jennifer Ernst, CEO of Tivic Health, highlighted the significance of the partnership in sharpening the company's market strategy and clinical study trajectories. She noted the promising market opportunities for their non-invasive bioelectronic therapies, as evidenced by the Phase 1 trial outcomes that demonstrated strong physiological effects.
Tivic Health's engagement with Fletcher Spaght is expected to inform the clinical strategy and product development for 2025 and beyond, with the aim of addressing a range of therapeutic areas.
The company's first commercial product, ClearUP, is an FDA-approved bioelectronic sinus device available through online retailers and commercial distributors. Tivic Health's technology platforms target various nerve structures, offering drug-free therapeutic solutions for chronic health conditions.
This partnership announcement is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. The company cautions against placing undue reliance on these statements, which are subject to change based on various factors, including clinical trial results and strategic transactions.
"In other recent news, Tivic Health Systems Inc. has been making significant changes in its operations. The company expanded its equity incentive plan, increasing the number of shares authorized for issuance from 92,376 to 1,000,000. Tivic Health also ended its Fulfillment Services Agreement with ALOM Technologies Corporation, transitioning to alternative third-party logistics and storage services while developing in-house assembly and testing capabilities.
In a bid to raise approximately $4 million, Tivic Health announced terms for a public offering which includes around 4.7 million shares of common stock, accompanied by Series A and Series B warrants for additional shares, each priced at $0.85. Maxim (NASDAQ:MXIM) Group LLC is the sole placement agent for this transaction. The company has also been granted three new patents by the United States Patent and Trademark Office and the European Patent Office, covering advancements in their microcurrent stimulation devices used for health treatments.
However, Tivic Health received a non-compliance notice from the Nasdaq Stock Market LLC due to its common stock closing bid price falling below $1.00 per share for 33 consecutive business days. The company's stock remains listed on the Nasdaq Capital Market, and it has until December 26, 2024, to meet the minimum bid price requirement. Lastly, Tivic Health welcomed Christina Valauri to its board of directors, bringing over three decades of experience in capital markets and equity research, particularly within the healthcare sector. These are all recent developments within the company."
InvestingPro Insights
In the wake of Tivic Health Systems Inc.'s announcement about their strategic partnership with Fletcher Spaght, investors and industry watchers are closely monitoring the company's financial health and market performance. According to InvestingPro data, Tivic Health holds a market capitalization of $1.71 million, reflecting the size of the company in the current market landscape. Despite the challenges, the company's balance sheet shows resilience, with cash holdings surpassing debt levels, suggesting a degree of financial flexibility as it navigates its growth strategy.
InvestingPro Tips indicate that analysts are optimistic about Tivic Health's sales growth in the current year, which could be bolstered by the strategic moves the company is making in the bioelectronic medicine space. Nonetheless, the stock's price has experienced significant volatility, highlighting the speculative nature of investing in the emerging field of ncVNS technology.
While the company's gross profit margin stands at 27.85% for the last twelve months as of Q2 2024, the negative revenue growth of -21.67% during the same period signals challenges in revenue generation. Additionally, with an operating income margin of -601.17%, the company faces hurdles in translating its gross profits into operational profitability. For investors seeking comprehensive analysis, InvestingPro offers additional tips on Tivic Health, which can be found at https://www.investing.com/pro/TIVC, providing a deeper dive into the company's financials and market potential.
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