Vivos Therapeutics Inc (VVOS)VVOS

Vivos Therapeutics Inc. (VVOS): A Comprehensive Overview

Company Profile:

Detailed History and Background: Vivos Therapeutics, Inc. (VVOS) is a medical technology company headquartered in Minnesota, USA. Founded in 2006, the company initially focused on developing and marketing dental sleep appliances for snoring and obstructive sleep apnea (OSA). In 2016, VVOS shifted its focus to developing and commercializing the Bioresonance therapy. Bioresonance is a non-invasive, non-drug treatment for OSA and other chronic diseases.

Core Business Areas: VVOS currently operates in two main business areas:

• Dental Sleep Appliances: VVOS designs, manufactures, and markets Mandibular Advancement Devices (MADs) under the Vivos brand. These devices treat OSA by repositioning the lower jaw during sleep, opening the airway and reducing snoring and apnea episodes.
• Bioresonance Therapy: VVOS's Bioresonance platform uses low-frequency electromagnetic signals to modulate cellular activities and potentially address various chronic diseases, including OSA, fibromyalgia, chronic pain, and others.

Leadership Team and Corporate Structure: VVOS is led by a team of experienced executives in the medical device and technology industries. The current CEO is Kirk Huntsman, who has significant experience in developing and commercializing medical devices. The company operates a lean organizational structure with key departments, including research and development, manufacturing, marketing, and sales.

Top Products and Market Share:

Top Products:

• **Vivos Precision Bite: ** This custom-made MAD uses precise digital scans to achieve an optimal fit and enhance therapeutic effectiveness.
• Vivos Biomarker Test: This non-invasive home test assesses the body's inflammatory response, identifying patients who may benefit from Bioresonance therapy.
• Vivos Bioresonance System: This portable device delivers individually designed low-frequency electromagnetic signals to target specific tissues and cells.

Market Share: VVOS is a relatively small player in the global OSA treatment market, estimated to be worth over $8 billion by 2026.

• Dental Sleep Appliances: VVOS holds a small market share in the global MAD market, estimated to be worth around $900 million in 2021. The company faces competition from several established players like ResMed, ProSomnus, and SomnoMed.
• Bioresonance Therapy: VVOS is a pioneer in developing and commercializing Bioresonance therapy for chronic diseases. While the market potential is significant, its market share is currently negligible as Bioresonance is a relatively new therapy.

Total Addressable Market:

The total addressable market (TAM) for Vivos Therapeutics can be segmented into two main parts:

• OSA Treatment Market: The global OSA treatment market is estimated to be worth over $8 billion by 2026. This includes various treatment options like CPAP therapy, oral appliances, and surgery.
• Chronic Disease Management Market: The global chronic disease management market is projected to reach $165 billion by 2028. This includes therapeutic solutions for various chronic conditions like fibromyalgia, chronic pain, and others.

Financial Performance:

• Revenue: VVOS's revenue has grown significantly in recent years, primarily driven by the growing adoption of Vivos Precision Bite appliances. In 2022, the company reported revenue of $24.1 million, compared to $14.1 million in 2021.
• Net Income: VVOS is not yet profitable but has reported narrowing net losses in recent years. The net loss in 2022 was $11.6 million, compared to $14.8 million in 2021.
• Profit Margins: VVOS's gross profit margin is currently around 60%. The company aims to achieve profitability as it scales up its operations and reduces operating expenses.
• Earnings per Share (EPS): VVOS does not have positive EPS due to its current unprofitability.

Dividends and Shareholder Returns:

• Dividend History: VVOS currently does not pay dividends as it focuses on reinvesting its earnings back into growth initiatives.
• Shareholder Returns: VVOS stock has experienced high volatility in recent years. One-year total shareholder return as of November 8, 2023, is approximately -40%. However, investors with a longer-term perspective might experience better returns as the company's Bioresonance technology matures and gains further market acceptance.

Growth Trajectory:

• Historical Growth: VVOS has experienced rapid revenue growth in recent years, primarily driven by the adoption of its Vivos Precision Bite appliances.
• Future Growth Projections: VVOS's future growth will depend on the commercial success of its Bioresonance therapy. The company estimates the potential market for bioresonance to be over $40 billion. If successful, Bioresonance could be a significant growth driver for VVOS in the coming years.
• Recent Product Launches and Strategic Initiatives: VVOS recently launched two new Bioresonance therapy devices and secured various insurance network contracts. These initiatives may contribute to its future growth.

Market Dynamics:

• Industry Trends: The OSA treatment market is expected to witness robust growth over the next few years, driven by rising awareness, increasing prevalence of OSA, and technological advancements.
• Demand-Supply Scenario: While the demand for OSA treatment is growing, the current supply of effective and affordable treatment options remains limited.
• Technological Advancements: Technological advancements in areas like digital dentistry and bioresonance therapy may create new opportunities for VVOS.

Market Position and Adaptability: VVOS holds a niche position in the OSA treatment market with its Vivos Precision Bite appliances. However, its success with Bioresonance therapy still needs to be proven. The company demonstrates adaptability by actively pursuing innovation and expanding its technology platform.

Competitors:

• Key Competitors: Key competitors in the OSA treatment market include ResMed (RMD), Koninklijke Philips (PHG), and ProSomnus (PRSOM). VVOS also faces competition from other emerging players in the bioresonance therapy space.
• Market Share Percentages: ResMed is the market leader in the global CPAP market, holding a market share of approximately 40%. Philips comes in second with a market share of around 20%. Vivos's market share in the MAD market is estimated to be less than 5%.
• Competitive Advantages and Disadvantages: Vivos's competitive advantages include its proprietary Vivos Precision Bite technology and its pioneering research in Bioresonance therapy. However, the company faces challenges with smaller market share, limited brand recognition, and less established research-backing for its Bioresonance platform.

Potential Challenges and Opportunities:

Key Challenges:

• Lack of Profitability: VVOS needs to achieve profitability for long-term sustainability.
• Scaling Up Operations: Scaling up operations and manufacturing for Bioresonance therapy comes with its own logistical and cost challenges.
• Building Brand Recognition: As a relatively new player in the bioresonance therapy space, VVOS needs to build brand recognition and trust among healthcare professionals and patients.

Potential Opportunities:

• Bioresonance Therapy Market Growth: The potential market for bioresonance therapy is substantial, creating significant growth opportunity for VVOS.
• Strategic Partnerships: Collaboration with established players in the medical device or pharmaceutical industries could accelerate VVOS's growth and market penetration.
• Technological Advancements: Continuous technology advancement in Bioresonance therapy could improve effectiveness and broaden the application of VVOS's Bioresonance platform.

Recent Acquisitions (Past 3 years):

• None: Vivos Therapeutics Inc. has not acquired any companies in the past 3 years.

AI-Based Fundamental Rating:

Rating: 6.5/10

Justification: VVOS possesses strong growth potential with its innovative Bioresonance therapy platform. However, the technology is still in its early stages, and achieving market acceptance, profitability, and successfully scaling operations remain its key challenges. Currently, the company holds a niche position in the OSA treatment market and requires consistent execution of its growth strategy to realize its full potential.

Disclaimer: This analysis is based on publicly available information and should not be considered financial advice. It is important to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.

Sources:

• Vivos Therapeutics, Inc. (VVOS) website
• Investor Relations pages of key competitors
• Industry reports and market research data from sources like Market Research Future, Grand View Research, and Mordor Intelligence
• News articles and financial publications like Reuters, Bloomberg, and Seeking Alpha

This overview provides a comprehensive understanding of Vivos Therapeutics Inc.'s current operations, growth prospects, and challenges.