BioElectronics expands into Czech Republic/Slovakia; US clearances key to company success
Consumable medical device manufacturer, BioElectronics, has announced that its partner, easyMed sro, has begun sales and distribution of BioElectronics' ActiPatch musculoskeletal pain relief and RecoveryRx postoperative and wound care therapy brands in the Czech Republic and Slovakia.
easyMed employs 16 sales representatives that cover the entire Czech Republic and has access to numerous physician and orthopaedic clinics and pharmacies. The company also owns a large share of the medical market and is a leading supplier of viscosupplement products. easyMed is the Czech distributor of Anika Therapeutics' Monovisc single-injection viscosupplement for the relief of joint pain.
ActiPatch musculoskeletal pain therapy was initially launched through the internet across 27 European countries, in August 2012. The eight-hour patch claims to provide five times better pain relief and to be 100 per cent safer than over-the-counter drugs, which are linked to side effects, are sometimes minimally effective and can provide only short-term pain relief.
In recent times, BioElectronics has focused its attention on international customers to expand its distribution and sales. In preparation for global expansion into new markets, the company has established distribution agreements in, among other countries, South Korea, Singapore, Malaysia, Canada, Columbia, Italy, Scandinavia, Saudi Arabia, Japan, Benelux, Australia, Austria and South America. In March 2012, the company appointed Shanghai Lixiu Medical Devices to sell its RecoveryRx products throughout China. At the same time,Â BioElectronics retained the services of UK-based Orian Healthcare as its sales agent in the Middle East, and signed a distribution agreement with Juno Pharmaceuticals covering the Indian market.
Furthermore, in June 2011, the company entered into a distribution agreement with Lemmy's Global Markets to distribute its RecoveryRx products in West Africa. Lemmy's Global Markets concentrates on marketing RecoveryRx into government health clinics and hospitals, in addition to privately-owned healthcare facilities.
Regarding its home market of the US, BioElectronics has only obtained clearance for one product line, RecoveryRx, within one market - US plastic surgery. Consequently, domestic sales are restricted primarily to medical providers until additional clearances are received from the FDA. Past sales efforts have centred on podiatry, orthopaedics and plastic surgery, but sale increases to these target markets have been slow. However, once BioElectronics gains additional FDA clearances, the company expects to be more successful in gaining sales for RecoveryRx products in the US oral, orthopaedic, general surgery, wound care, podiatry, chiropractic and pain markets. FDA clearance is currently pending.
For the nine months ended 30th September 2012, BioElectronics reported gross profit of US$104,297 on sales of US$306,699, compared with gross profit of US$364,470 on sales of US$737,399 in the comparative period of 2011. Minimal global sales in 2012 highlight the urgent need for BioElectronics to break into the above-mentioned US markets, where the company would see sales of its products soar.