Viveve Medical Inc (NASDAQ: VIVE) is having a great day in the market today, and for good reason. The company announced that it has entered into an exclusive distribution partnership, exciting investors and pushing the stock up. Here’s what’s happening:
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VIVE Stock Climbs On Distribution Partnership
In a press release issued early this morning, Viveve Medical said that it has entered into a new exclusive distribution agreement. The agreement was signed with a leading distributor of medical devices and technologies in Canada, known as Salient Medical Solutions.
In a statement, Scott Durbin, CEO at VIVE, had the following to offer:
We are pleased to partner with Salient Medical to expand the commercial availability of the Viveve® System to physicians and healthcare providers throughout Canada. As we make the shift to the recurring revenue model in the U.S., this partnership strategically expands our commercial capabilities with a large and established distributor with over 25 years of experience supplying leading-edge technologies to medical specialists and practices offering women’s health treatments. We are confident that their specialized sales team will enhance physician adoption and utilization of our cryogen-cooled monopolar radiofrequency (CMRF) technology.
The above statement was followed up by Jay Herman, President at Salient Medical. Here’s what he had to offer:
We are excited to add the Viveve System to our product portfolio, which gives aesthetic, medical, and women’s health providers the opportunity to expand their practices and offer the clinically-proven single session Viveve treatment to their patients. Health Canada’s approval of the Viveve System for improved sexual function is a valuable differentiator from other devices in this space. This exclusive distribution agreement expands our proven record of success in bringing safe and effective, leading-edge medical technologies to our clients and we look forward to our partnership with Viveve.
Why This News Is So Exciting
VIVE has been working to commercialize what it calls the Viveve System. The system is designed to provide sustained tissue tightening and strengthening by heating tissue at depth. The company’s patented technology hs the unique ability to deliver volumetric heat in order to stimulate robust neocollagenesis.
However, just having a strong product isn’t enough to be successful. The company needs to be able to sell the product as well.
The partnership with Salient means that a company with multiple decades of experience and a very wide network will be working to sell the product. As a result, we can expect to see strong growth in sales, and therefore, revenue.
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