NanoVibronix Secures $12 Million Minimum Purchase Commitment for PainShield with Extension of Distribution Agreement

Rhea-AI Summary

NanoVibronix (NASDAQ: NAOV) has renewed its exclusive distribution agreement with Ultra Pain Products (UPPI) for PainShield distribution for another five years. The agreement includes a minimum purchase commitment of $12 million. The renewal follows UPPI's significant growth over the past four years and its evolution in the non-opioid pain management and injury recovery industry.

The collaboration aims to strengthen both companies' market presence, with UPPI continuing to distribute NanoVibronix's proprietary PainShield as part of its expanding portfolio of technologies. The partnership focuses on providing innovative non-opioid treatment options while prioritizing safety, efficacy, and accessibility in the U.S. market.

Positive

• Secured $12 million minimum purchase commitment for PainShield
• Extended exclusive distribution agreement for 5 years
• Partnership with established distributor in non-opioid pain management sector

Negative

• None.

Insights

Financial Analyst

The secured $12 million minimum purchase commitment represents a significant revenue stream for NanoVibronix, particularly noteworthy given the company's current market cap of just $2.6 million. The 5-year extension provides stable, predictable revenue that could potentially transform the company's financial outlook. This type of long-term distribution agreement adds substantial value by reducing revenue uncertainty and strengthening the company's market position in the non-opioid pain management sector.

The partnership with UPPI, which has shown remarkable growth and expanded into manufacturing, could accelerate market penetration for PainShield. This deal structure, combining exclusivity with minimum purchase commitments, typically indicates strong product demand and market confidence. For a micro-cap company, securing a commitment nearly 5x its market cap is exceptionally significant and could attract institutional investor interest.

Medical Device Market Analyst

This agreement strengthens NanoVibronix's position in the rapidly growing non-opioid pain management market. The Surface Acoustic Wave technology in PainShield represents an innovative approach to pain management, particularly relevant amid the ongoing opioid crisis. UPPI's transition into manufacturing and their expanding portfolio suggests strong market demand for alternative pain management solutions.

The exclusive distribution renewal indicates PainShield's competitive advantages and market acceptance. The commitment to a 5-year term by an established distributor validates the technology's clinical utility and commercial viability. This partnership could accelerate market penetration and establish PainShield as a leading non-pharmacological pain management solution.

Extends Relationship with Ultra Pain Products, Inc for Distribution of PainShield for Five Years

ELMSFORD, N.Y.--(BUSINESS WIRE)-- NanoVibronix, Inc., (NASDAQ: NAOV) (the “Company”), a medical device company that produces the UroShield®, PainShield® and WoundShield® Surface Acoustic Wave (SAW) Portable Ultrasonic Therapeutic Devices, today announced it has renewed its exclusive distribution agreement with Ultra Pain Products, Inc. (“UPPI”) for the distribution of the Company’s PainShield for another five years.

Brian Murphy, CEO of NanoVibronix, commented, "We are thrilled to extend our partnership with Ultra Pain Products for another five years and secure a minimum purchase commitment of our products valued at $12 million. UPPI’s impressive growth, transition into manufacturing and dedication to innovation align perfectly with our values and goals. Their ability to deliver affordable and effective solutions to patients makes them an ideal partner to help us continue to make a difference."

The Company’s decision to renew the distribution agreement comes in recognition of UPPI’s remarkable growth over the past four years and its evolution into a leading force in the non-opioid pain management and injury recovery industry. The renewed agreement underscores the continued collaboration between the two companies and ensures that NanoVibronix’s proprietary PainShield product is a part of Ultra Pain Products’ expanding portfolio of proven and groundbreaking technologies.

Ari Alayev, President of Ultra Pain Products, commented, “We are honored to continue our exclusive distribution agreement with NanoVibronix. We view our partnership as a collaboration that strengthens each organization’s impact in the market. This renewal is a testament to our shared vision and the mutual trust we have built over the past four years. We are excited to continue to offer PainShield as part of our growing roster of innovative technologies as we continue to expand our offerings and lead the charge in non-opioid treatment options.”

The agreement reflects the companies’ mutual dedication to supporting injury recovery and empowering patients with advanced solutions that prioritize safety, efficacy, and accessibility. Together, they remain committed to driving forward the non-opioid treatment landscape in the U.S.

About NanoVibronix, Inc.

NanoVibronix, Inc. (NASDAQ: NAOV) is a medical device company headquartered in Tyler, Texas, with research and development in Nesher, Israel, focused on developing medical devices utilizing its patented low intensity surface acoustic wave (SAW) technology. The proprietary technology allows for the creation of low-frequency ultrasound waves that can be utilized for a variety of medical applications, including for disruption of biofilms and bacterial colonization, as well as for pain relief. The devices can be administered at home without the continuous assistance of medical professionals. The Company’s primary products include PainShield® and UroShield®, which are portable devices suitable for administration at home or in any care setting. Additional information about NanoVibronix is available at: www.nanovibronix.com.

Forward-looking Statements

This press release contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified; consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with: (i) market acceptance of our existing and new products or lengthy product delays in key markets; (ii) negative or unreliable clinical trial results; (iii) inability to secure regulatory approvals for the sale of our products; (iv) intense competition in the medical device industry from much larger, multinational companies; (v) product liability claims; (vi) product malfunctions; (vii) our limited manufacturing capabilities and reliance on subcontractor assistance; (viii) insufficient or inadequate reimbursements by governmental and/or other third party payers for our products; (ix) our ability to successfully obtain and maintain intellectual property protection covering our products; (x) legislative or regulatory reform impacting the healthcare system in the U.S. or in foreign jurisdictions; (xi) our reliance on single suppliers for certain product components, (xii) the need to raise additional capital to meet our future business requirements and obligations, given the fact that such capital may not be available, or may be costly, dilutive or difficult to obtain; (xiii) our conducting business in foreign jurisdictions exposing us to additional challenges, such as foreign currency exchange rate fluctuations, logistical and communications challenges, the burden and cost of compliance with foreign laws, and political and/or economic instabilities in specific jurisdictions; and (xiv) market and other conditions. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at: http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events, or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241211270647/en/

Investor Contact:

Brett Maas, Managing Principal, Hayden IR, LLC

brett@haydenir.com

(646) 536-7331

Source: NanoVibronix, Inc.

FAQ

What is the value of NanoVibronix's (NAOV) new purchase commitment for PainShield?

NanoVibronix secured a minimum purchase commitment of $12 million for PainShield through its distribution agreement with Ultra Pain Products.

How long is the new distribution agreement between NAOV and Ultra Pain Products?

The distribution agreement between NanoVibronix and Ultra Pain Products has been renewed for five years.

What products are included in NAOV's distribution agreement with UPPI?

The distribution agreement specifically covers PainShield, one of NanoVibronix's Surface Acoustic Wave (SAW) Portable Ultrasonic Therapeutic Devices.

What market segment does the NAOV-UPPI partnership target?

The partnership targets the non-opioid pain management and injury recovery market segment in the United States.