Even though the firm has canceled an agreement, Tivic Health Systems Inc. (TIVC) shares increased 8.89% to $0.98 on Tuesday.
What deal did TIVC reject?
With both parties’ cooperation, Tivic Health (TIVC) stated that it has ended the contract with Reliefband Technologies, LLC. On October 7, 2022, Tivic Health signed the contract in order to purchase the Reliefband product line and related assets. Because of the unstable nature of the financial markets right now, TIVC came to the conclusion that moving through with the purchase is not currently in the best interests of its stakeholders right now.
TIVC and Reliefband management continue to get along well despite the fact that both sides were disappointed with the result. In addition to keeping up with its evaluation of M&A, licensing, and collaboration options, TIVC remained dedicated to its expansion plan. In the immediate future, TIVC will concentrate on accelerating ClearUP sales and growing its natural product pipeline.
Supply chain provider is chosen by TIVC:
TIVC product orders will be stored, packaged, and sent by ALOM, a third-party logistics (3PL) storage, fulfillment, and manufacturing partner with headquarters in the United States. The technology-driven supply chain services offered by ALOM, which has 19 facilities throughout the world, include inventory systems, manufacturing services, sourcing, delivery, warehouse management, and logistical systems technology.
A bespoke assembly, fulfillment, and reverse logistics program that upholds the basic principles of technology-driven innovation, quality and excellence in service level has been developed by TIVC using ALOM’s medical supply chain experience. The addition of ALOM’s knowledge and technological infrastructure enables TIVC to integrate sales channels, improve fulfillment, and streamline shipping so that we may concentrate on scalable growth and client demands.
The steps were taken by TIVC to cut costs
Additional cost-cutting and margin-improving measures, including the implementation of a manufacturing collaboration with Microart Services Inc., were also recently announced by Tivic Health (TIVC). By making that change, TIVC hopes to increase manufacturing scalability and save costs for printed circuit board subassemblies by up to 70%. Additionally, TIVC increased the manufacturer’s suggested retail price (MSRP) for each ClearUP device by $20.