Medical device manufacturer Visiomed Group Ltd is making major inroads with the distribution of its Funhaler paediatric asthma spacer, having secured overseas contracts totalling $7.1 million in the past six months.
The Nedlands-based business is close to posting its first profit this quarter, following the signing of its biggest contract to date, worth about $3 million, earlier this month with UK-based medical distributor, Clinisupplies Ltd.
Under the deal, Visiomed will supply 112,000 units to major pharmacy outlets and chains, including Boots and Lloyds.
Since February, the company has signed agreements with distributors in the US, Brazil, Israel and Italy.
Patents have also been issued for Visiomed’s technology in China and the US during the past year.
Prior to its overseas markets coming online, the company acquired a major stake in the local asthma spacer market through its $2.6 million purchase (plus performance payment) of Newcastle-based respiratory device company, Breath-A-Tech, in November last year.
As a result of the takeover, Visiomed has about 75 per cent of the market share in Australia for asthma spacers.
Visiomed chief executive officer Dr Bill Dolphin said the company expected to break-even or record a profit this quarter, although it would post a loss for the financial year end due to the acquisition of Breath-A-Tech and an aggressive marketing campaign.
He said the company was examining opportunities in Germany and Japan, although it would focus on its recently acquired overseas markets initially.
“We have to develop those markets and make sure they’re performing first,” Dr Dolphin said.
He said Visiomed was in discussions with a number of companies in the US, Denmark and Australia, with a view to establishing partnerships or joint ventures in the inhaled drug delivery sector.
However, he said the company was not seeking to be involved in further research and development for inhaled drug delivery.
“Any acquisitions will be accretive. We are looking for products that are close to commercialisation or are commercialised,” he told WA Business News.
The company is expected to generate more than $2 million from product sales and royalties during the next six months.
Visiomed is also researching an ophthalmic imaging system to aid screening and diagnosis of eye diseases. The company has developed a functional prototype and is currently testing the product in clinical trials.
