Obstructive sleep apnea company Oventus Medical (ASX:OVN) has signed a marketing agreement with VGM & Associates.
VGM is the largest Member Service Organisation (MSO) in the US for durable medical equipment providers, including those that provide sleep and respiratory services for their patients.
Under the agreement, Oventus Medical will provide its Lab in Lab (LIL) program and technology as a preferred supplier to VGM’s members. VGM’s member base exceeds 7,000 locations in the US.
According to senior vice president of contracting at VGM, Scott Owen, “We are pleased to enter this agreement with Oventus Medical which encompasses our core values of providing solutions, opportunities and a competitive advantage to our members in the area of oral appliance therapy options.
"The difficulties associated with CPAP therapy and optimum patient care are well understood. By working with Oventus, the introduction of a program that offers oral appliance therapy as an alternative to CPAP, in the event of patient intolerance to PAP therapy enables our members to better support both their patients and referral sources, while strengthening their revenue base.”
Dr Chris Hart, founder and CEO of Oventus, said, “This is an incredibly exciting milestone and one that moves us closer to the point-of-care where CPAP therapy is dispensed. It is a critical point in the patient’s treatment journey when they may find themselves intolerant to CPAP and open to trying treatment alternatives such as the O2Vent Optima.
"This partnership creates the opportunity to offer millions of patients an alternative, effective treatment for obstructive sleep apnea. We have demonstrated on a smaller scale that Oventus’ technology and clinical business model can adapt and evolve even in the midst of a global pandemic and continue to grow. The opportunity to scale up this clinical business model with a national sleep and respiratory organisation can’t be understated.”
Oventus said the agreement is initially for a one-year term, with automatic annual renewal, unless one party elects not to renew 90 days prior to the end of that term.
It said it expects to commence the process of launching its ‘LIL’ program and the marketing agency agreement to VGM’s member base in January 2021.