In a trading update released today, Belluscura (BELL ) told investors that demand for its X-PLO2R™ portable oxygen concentrator has significantly exceeded the Board’s initial expectations.
Belluscura, a medical device developer which is focused on lightweight and portable oxygen enrichment technology, says X-PLO₂R™ is the first modular portable oxygen concentrator.
The X-PLO₂R™ weighs less than 1.5kg (3.25lbs) and can deliver up to 95% pure oxygen to patients 24 hours a day, 7 days a week. In fact, the Company explained that the X-PLO₂R™ can generate more oxygen by weight than any other US FDA cleared POC in its class.
X-PLO₂R™, which commenced manufacturing in the US this July, was created to improve the quality of life for millions of people worldwide who suffer from chronic lung diseases, such as Chronic Obstructive Pulmonary Disease and respiratory distress caused by COVID-19.
Today, the Company said it has exceeded its anticipated sales volume for FY21 following the signing of five distribution agreements in the US and initial product sales in September 2021. The Company also highlighted to shareholders that these were ‘relatively modest targets.’
Given the consumer reception to date, Belluscura said it is confident that the expected run rate for unit sales and revenue for FY22 will be materially ahead of current market forecasts.
Based upon the current growth prospects and opportunities, the Company said it has entered into an updated partnership agreement with its US-based manufacturing partner in order to increase production capacity to meet anticipated demand for FY22 and beyond. The Board expects to update shareholders on the full year outcome for FY21 in early January 2022.
Robert Rauker, CEO of Belluscura, commented: “Market reception for the X-PLO2R™ has been positive and initial demand has been very strong. The recent addition of a fifth distributor in North America gives us confidence to substantially expand our manufacturing capacity to meet demand in the coming years. With the Company now poised to exceed the manufacturing and sales targets set at IPO, we can look to the future with confidence.”
Last week, Belluscura announced that its X-PLO₂R™ portable oxygen concentrator had won the Providers’ Choice Gold, the highest accolade to be given at Medtrade East 2021 in Atlanta, the largest home medical equipment trade show and conference in the U.S.
Earlier in October, Belluscura announced that it had signed its fifth distribution agreement with an unnamed online partner, to distribute its X-PLO₂R™ product across the United States.
At the time, the Company said the US client, which has already placed its first orders with Belluscura, is a ‘leading online distributor, located in Colorado, Arizona and Georgia’.
Belluscura also describes its online partner as being a ‘significant presence’ in the portable concentrated oxygen market which has cumulatively served over 100,000 customers.
This distribution agreement is considered significant by Belluscura because it means the Company has exceeded the initial commercial launch target for X-PLO₂R™ unit sales.
Belluscura said it demonstrates that its management team is successfully delivering on its commercialisation strategy while also highlighting ‘the evident market anticipation for X-PLO₂R™ and its ability to significantly improve the current standard-of-care,’ it noted.
In July, the Company said manufacturing had commenced in the United States for the first X-PLO2R™ units ahead of their planned distribution which had been on target for 3Q21.
Last month, Belluscura said initial demand for X-PLO₂R™, the world’s first modular portable oxygen concentrator, had been “strong” since the first units were distributed to customers.
“Receiving FDA 510(k) Clearance for the X-PLO2R™ was pivotal for the Group, followed by an oversubscribed placing and successful listing in May. To have brought the product to market so quickly is a tremendous achievement,” commented Chairman, Adam Reynolds in the Company’s recently published half-year results for the six months to 30 June 2021.
Last month, Reynolds said the initial response from the market was “hugely positive” to date.
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