Tivic Cuts Final Assembly Production Costs by 40%, Completes First Key Supplier Qualification

Rhea-AI Summary

Tivic Health Systems (TIVC), a health technology company specializing in bioelectronic medicine, announced the completion of supplier qualification and first article inspection with ALOM, enhancing production efficiency. This advancement aims to decrease third-party logistics costs by up to 30% and reduce assembly costs by 40% per unit. This move is part of Tivic's strategy to improve margins and cost management, confirming that their production processes meet regulatory standards.

Positive

• Supplier qualification with ALOM supports cost reduction and improved margins.
• Third-party logistics costs expected to decrease by up to 30%.
• Overall final assembly production costs reduced by 40% per unit.

Negative

• None.

SAN FRANCISCO--(BUSINESS WIRE)-- Tivic Health® Systems, Inc. (“Tivic”) (Nasdaq: TIVC), a commercial-phase health technology company that develops and commercializes bioelectronic medicine, today announced it has completed the supplier qualification and first article inspection of ALOM, one of two new partners announced in Q4 of 2022.

The supplier qualification and successful first article inspection help confirm that Tivic’s production process is under statistical control and produces safe, high-quality products in compliance with Tivic’s specifications and applicable regulatory requirements.

“This is an important advancement that supports our initiative to reduce costs and improve margins,” said Ryan Sabia, COO of Tivic. “Working with ALOM will allow us to decrease our third-party logistics costs by up to 30% and we have reduced our overall final assembly production costs by 40% per unit.”

About Tivic

Tivic Health Systems, Inc. is a commercial-phase health technology company delivering non-invasive bioelectronic treatments that provide consumers with a choice in the treatment of inflammation and certain other related conditions. For more information visit https://tivichealth.com @TivicHealth.

Forward-Looking Statements

This press release may contain “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” “will” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Tivic Health Systems, Inc.’s current expectations and are subject to inherent uncertainties, risks, and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. Given the existence of risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. For a discussion of certain risks and uncertainties, and other important factors, relevant to the company, any of which could cause Tivic’s actual results to differ from those contained in the forward-looking statements, see Tivic’s filings with the SEC, including, its Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 31, 2022, under the heading “Risk Factors”; its Registration Statement on S-1, filed with the SEC on October 26, 2022, and amendments thereto, under the heading “Risk Factors”; as well as the company’s subsequent filings with the SEC. Forward-looking statements contained in this press release are made as of this date, and Tivic Health Systems, Inc. undertakes no duty to update such information except as required by applicable law.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230314005244/en/

Media Contact:

Kayleigh Westerfield

949-632-3439

Kayleigh.Westerfield@tivichealth.com

Investor Contact:

Hanover International, Inc.

ir@tivichealth.com

Source: Tivic Health Systems, Inc.

FAQ

What recent advancements has Tivic Health (TIVC) made regarding their suppliers?

Tivic Health has completed supplier qualification and first article inspection with ALOM, improving their production efficiency.

How much can Tivic Health reduce its third-party logistics costs?

Tivic Health expects to decrease its third-party logistics costs by up to 30%.

What is the reduction in overall final assembly production costs for Tivic Health (TIVC)?

The overall final assembly production costs for Tivic Health have been reduced by 40% per unit.

What does the recent press release from Tivic Health (TIVC) indicate about their production process?

The press release indicates that Tivic's production process is under statistical control and complies with regulatory requirements.