Medical technology company Chordate Medical has developed a nerve-stimulating and drug-free treatment for chronic migraine and chronic nasal congestion (rhinitis). The treatment is called Kinetic Oscillation Stimulation (KOS) and consists of a catheter, control unit and a vibrating balloon that is inserted into the patient's nasal cavity. The KOS treatment is performed by a doctor or nurse and takes only 25 minutes.
Focusing on market introductions
The company has enlisted the help of market experts to introduce the migraine treatment in the UK, Germany, Finland and Israel. In addition, the distributors are working VEDISE Hospital SpA and Janin Medical Company the Italian market and the Saudi Arabian market. Chordate also has ongoing projects to obtain market approval in the USA and China.
In Finland assesses Chordate that they have built up some awareness in the country as they recently conducted the successful PM007 migraine study with KOS in four Finnish clinics. The country also has many private healthcare providers and established private health insurance solutions, which means that the path to market may be shorter and more manageable.
Strengthened cash register
The company recently strengthened its cash position by SEK 37,3 million through a rights issue and thus has enough capital to finance the continued marketing and sales work in the next stage. In the annual report for 2022, the CEO explains Anders Weilandt that they have received good feedback when visiting different markets:
»During the many trips my colleagues and I have made to different countries and gatherings in the field of migraine recently, I have encountered a genuine interest from doctors in the clinical reality everywhere. I see in the response how significant our treatment method can be on a global level«
Anders Weilandt on the market potential
BioStock contacted Anders Weilandt to find out more about the progress in marketing work.
Now we're a little bit into 2023 - how would you describe the first months of the year?
– The Saudi distributor Janin got started right away with an important congress right after the New Year. Now the authority permits for the rhinitis treatment have also been transferred for some time and we expect to be able to deliver their first units soon. Ramadan ends in just over a week, after which we expect the migraine registration to also be completed.
– In Italy, sales work is in full swing, and we are receiving reports of good interest from leading migraine doctors. For the UK and Germany, our marketing consultants are working intensively with opinion leaders and have gained a good grasp of where we should focus. In time, this work will bear fruit.
»In Italy, sales work is in full swing, and we are receiving reports of good interest from leading migraine doctors. For the UK and Germany, our marketing consultants are working intensively with opinion leaders and have gained a good grasp of where we should focus. In time, this work will bear fruit.«
You recently published a press release regarding the migraine market in Finland. What is the market potential for KOS there?
– We believe that we have a favorable position and the opportunity for early market shares in private occupational healthcare, which in Finland is much larger compared to Sweden and which also delivers a much broader range of care. Here we have early support in the fact that our migraine study was carried out by large private clinics in that segment. As awareness of our migraine solution and the study work begins to spread, we have also received response from large public healthcare providers.
»We believe that we have a favorable position and the opportunity for early market shares in private occupational healthcare, which in Finland is much larger compared to Sweden and which also delivers a much broader range of care.«
– Articles like the one about the market in Finland are a way for us to inform our shareholders and educate the stock market about the potential and the mechanisms that govern the different markets in which we are active. We will continue to inform the stock market about how the prioritized markets work so that they have good information for their investments.
How do your selected markets differ? Are there any particular advantages or disadvantages in the market mechanisms in each market?
– Since we have previously established reimbursement at a national level in Saudi Arabia from both private health insurance and the Ministry of Health, Janin should now be able to benefit from it relatively quickly. When it comes to reimbursement, we have undoubtedly come the furthest there.
– VEDISE's skill and valuable network of contacts means that they find ways to get sales in Italy, sometimes with local or regional public compensation. Germany and the UK are large and difficult markets that are very bureaucratic – it takes time to penetrate. But once you succeed, that aspect actually works as a protection against competition.
What are the biggest challenges that could prevent Chordate from successfully achieving measurable market shares?
– We have chosen to work with a few markets in order to be able to focus our investment in market development. But of course, you should always remember that we are a small organization with limited resources. It is important for us to constantly try to be as efficient as possible. We have now finally obtained strong evidence that the treatment method is an effective alternative for migraine treatment. Therefore, I do not see anything that could prevent us from succeeding in the long run.
"We have now finally obtained strong evidence that the treatment method is an effective alternative for migraine treatment. Therefore, I do not see anything that could prevent us from succeeding in the long run."