Reimbursement of Innovus Pharma’s Largest Selling Product Vesele®
December 8, 2016 10:00 pm ET
Innovus Pharmaceuticals Inc.’s (OTCQB: INNV) Vesele® may be reimbursable through health insurance or health savings plans, including Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), Medical Savings Accounts (MSAs), and Health Reimbursement Arrangements (HRAs). Using these accounts, consumers could save 20% to 30% of the final cost of Vesele® if they provide a signed form from a healthcare provider supporting the supplement’s use.
In this article, we will look at the implications of reimbursement across all its products and the impact of these dynamics on their bottom line.
Robust Clinical Studies
Innovus Pharmaceuticals develops over-the-counter health and wellness supplements that are supported by robust clinical studies. Using this approach, the company has developed a growing pipeline of wellness products including Vesele®, Zestra®, Sensum+®, UriVarx™, Androferti®, RecalMax™, and many others. These products have all been shown to achieve statistically significant outcomes independent of prescription pharmaceuticals.
For example, the company’s Vesele® is a proprietary oral dietary supplement that maximizes nitric oxide’s beneficial effects on sexual function. The firm performed a U.S. human clinical use survey study evaluating erectile dysfunction accompanying endpoints and sexual satisfaction in men using Vesele® twice daily for up to four months. The results showed a 49.5% increase in erection hardness, 44.5% increase in erection maintenance, and a 34.1% increase in the ability to satisfy their partner.
The U.S. medical system relies heavily on reimbursements from health insurance and health savings plans to support sales. While reimbursements are crucial for expensive pharmaceuticals and medical devices, reimbursements for supplements offer customers modest to significant discounts and open the door to higher revenue. The problem is that many conventional doctors may be hesitant to support the use of supplements given their lack of rigorous study.
Innovus Pharmaceuticals’ robust clinical studies, whether double blind or use survey studies, provide the scientific backing needed for doctors to prescribe the supplements to their patients. By using reimbursements, consumers can save up to 30% on dietary supplements, which could help boost sales over time. Expanding these reimbursements to other supplements in its portfolio could further enhance sales across the men’s and women’s health and wellness spectrum.
As the company continues to introduce new products, the benefits of reimbursements could compound, especially since many products target the same consumers. For example, a person using Vesele® might also be interested in using Sensum+® for related benefits. The products also have a well-established sales pipeline following the company’s acquisition of Beyond Human™ earlier this year, which enables it to reach millions of potential customers.
Innovus recently encouraged customers using its Vesele® product to seek reimbursement from health insurance or health savings plans. These reimbursements could help consumers save as much as 30% of the cost of the supplements by obtaining a doctor’s note supporting its use. If successful in expanding these reimbursements across its product lines, the company could see significant revenue growth ahead.
Last quarter, the company reported record revenue of $1.9 million and remains on track to meet its 2016 revenue guidance of $5 million. Management also improved its balance sheet by raising $3 million from institutional investors to support ongoing product launches and growth over the coming months. In 2017, the company hopes to reach $15 million in revenues and achieve profitability on its bottom line financial results.