Tivic Health Systems, Inc. Cuts Component Manufacturing Costs by 70%, Completes Second Key Supplier Qualification

Rhea-AI Summary

Tivic Health Systems, Inc. (Nasdaq: TIVC), a health technology company, announced the completion of supplier qualification and first article inspection with Microart Services, boosting production efficiency. This partnership has led to a 70% reduction in printed circuit board manufacturing costs and 25X increased production capacity. Together with another partner, ALOM, the company expects a 30% decrease in 3PL costs, a 40% reduction in final assembly costs, and an overall 37% reduction in cost of goods sold for 2023, driving scalable growth.

Positive

• 70% reduction in printed circuit board manufacturing costs
• 25X increase in production capacity
• 30% reduction in 3PL costs
• 40% reduction in final assembly production costs per unit
• 37% reduction in overall COGs forecast for 2023

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 Microart Services, Inc., 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.

“Working with Microart has allowed us to reduce our printed circuit board manufacturing costs by 70% and increase production capacity by 25X,” said Ryan Sabia, COO of Tivic. “We expect that this will be an accelerator for scalable growth.”

Tivic’s partnership with two new suppliers, Microart and ALOM, has resulted in:

• Up to a 30% reduction in 3PL costs
• A 40% reduction in final assembly production costs per unit
• Up to 25x increased production capacity
• An overall COGs reduction forecast for 2023 of 37%

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

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View source version on businesswire.com: https://www.businesswire.com/news/home/20230329005679/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.