Sanara MedTech Inc. (NASDAQ: SMTI), along with InfuSystem Inc., recently entered into an exclusive U.S. distribution agreement with ChemoMouthpiece, LLC. Sanara will execute the terms of the agreement with the help of SI Healthcare Technologies (SI Technologies), which is a 50/50 joint venture between SMTI and InfuSystem.
ChemoMouthpiece owns and manufactures a clinically validated product named Chemo Mouthpiece — an oral cryotherapy device that brings relief to oral mucositis-affected patients. This device perfectly aligns with Sanara's skincare strategy. The company further aims to provide the device to oncology patients undergoing chemotherapy.
Following the announcement, shares of Sanara rose 0.5% to $33.51 yesterday. With the company gaining a high level of synergies from its collaborations within the skincare market, we expect market sentiment to remain positive around this development.
About Sanara's Distribution Agreement With ChemoMouthpiece
Under the agreement, SI Technologies will be the exclusive distributor of ChemoMouthpiece's kits in the United States. SI Technologies plans to market and distribute the product to approximately 3,000 cancer centers through InfuSystem's existing sales team. It will purchase the product kits from ChemoMouthpiece at a fixed price and pay a royalty on net revenues for the use of the product's intellectual property.
For investors' note, the Chemo Mouthpiece is FDA 501(k) approved.
Financial Details
Sanara invested $5 million for a 6.6% ownership in ChemoMouthpiece. Sanara has drawn $15.5 million on its term loan with CRG ...
