Nanosonics to build direct sales team in NA

Nanosonics (ASX:NAN) has established a direct sales operation in North America to help drive sales of its trophon EPR ultrasound probe disinfectant device in the market.

The company will work alongside distribution partner GE Healthcare to help expand the product’s presence in North America.

Nanosonics has six infection prevention sales professionals that had been working with GE Healthcare to support its distributor’s sales operations.

These workers will now commence direct sales in the USA and Canada, and Nanosonics plans to add up to 15 additional specialists to its sales force over the next three months.

GE Healthcare will remain a non-exclusive distributor of trophon EPR and related equipment in the two markets.

Nanosonics plans to establish its North American direct sales team over the next three months, and expects the operation to be fully functional by the end of the financial year.

The company warned that purchases by GE Healthcare from Nanosonics are unlikely to be significant over the transition period, but expects revenue from direct sales to grow significantly going into FY16.

“The ability to directly drive sales across the total market, including the non-hospital market, provides a compelling business rationale for commencing our own direct operations,” Nanosonics CEO Michael Kavanagh commented.

“This integrated sales model for North America is proving increasingly successful in markets such as the UK and is expected to accelerate the broad adoption of trophon EPR as the primary mechanism for the high-level disinfection of all ultrasound transducers.”

He said the company’s clinical studies program is also identifying new clinically significant benefits of the device. Nanosonics expects to present results from these studies in the current half-year.

Nanosonics (ASX:NAN) shares were trading 6.39% higher at $1.58 as of around 1.30 pm on Friday