Oventus AGM: hopes to run smoothly through Trump presidency, says sleep-device plans on track
OVENTUS, Brisbane-based maker of a sleep disorder treatment shaped like a mouthguard, is confident of riding unscathed through a Trump-led US.
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OVENTUS, a Brisbane-based maker of a sleep disorder treatment shaped like a mouthguard, is confident of riding unscathed through the US presidency of Donald Trump.
Oventus already has a device on sale in Australia but is hoping to scale up US operations in the second half of next year. Mr Trump was elected president and plans to alter Obamacare, which was designed to expand medical insurance coverage but has faced some domestic opponents.
Speaking after Oventus’s annual general meeting on Monday, Oventus chief executive Neil Anderson said he did not think Mr Trump’s election would impact marketing of the device. “Unless he radically changes the reimbursement process (which) is extremely unlikely,” he said.
Almost 85 per cent of all devices went through private health insurance, he said.
In Australia, dentists might charge between $1800 and $2500 for Oventus’s device, with some insurers reimbursing between 30 per cent and 60 per cent for high-level cover.
It comes as Mr Trump’s appointment throws up different scenarios for business — one potential impact being greater support for pharmaceutical companies because rival Hillary Clinton was seen as a potential threat to drug firm pricing.
Oventus’s AGM sailed smoothly. Only two questions came from investors.
Mr Anderson raised the possibility of finding a manufacturing partner if their device proved popular in the US. “To scale that thing you need more people, and they’ve got to be trained, or do you partner with someone,” he said.
Oventus floated in July this year at 50c a share, shot up to $1, and closed on Monday up 1c at 69c.
More than 40 Australian dentists have been trained so far on Oventus devices. Mr Anderson declined to reveal the level of returns of devices, only saying they were “minor”.
The company has faced analyst scrutiny over a lack of externally assessed data, but has since July been recruiting patients for a new 40-patient trial slated for completion by 2017’s first quarter.
It had $8.3 million in cash at the end of September, with a cash burn of almost $2.1 million.
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