Rhinomed positioned for growth in billion-dollar nasal tech market, as share price rockets 40pc in a month

The wearable nasal and respiratory technology maker, Rhinomed (ASX:RNO), has been on a roll lately, with its share price surging since the announcement of its solid quarter on 30 April.

Prior to today’s correction of around 8 per cent, the company’s share price has gained almost 50 per cent since the beginning of the month.

For shareholders, there was a lot to like in the company’s last quarter report.

Revenues increased by 95 per cent in Q1 to $1.2 million, despite the ongoing impact of the pandemic.

Cash balance was a solid $3.9 million, with a strong account receivable book at quarter end.

The company reported a top line year-to-date revenue of $3 million, mainly down to the strong performance of its Australian operations where expansion in key pharmacy chains has continued.

The recent addition of API as a distributor has further strengthened the company’s presence in the home market.

Billion-dollar markets

Melbourne-based Rhinomed competes in the billion dollar global respiratory, sleep and nasal congestion markets.

The company develops a nasal technology platform, which is protected via a family of over 60 patents and 57 design patents, brands and trademarks.

Its products are currently stocked in 20,000+ retail shelves globally.

The award-winning technology is used by by athletes, clinicians and customers from all over the world to solve their breathing, sleep and nasal congestion issues.

The products also allow a number of different applications in the sleep, stress, immunity, and pain categories.

For example, its nasal swabs are used in cases of whooping cough, diphtheria, influenza, and various types of diseases caused by the coronavirus family including COVID-19.

The market for its respiratory care devices, which includes sensors, is expected to reach US 30 billion by 2025, from US$16 billion in 2019.

Meanwhile, the global nasal drug delivery technology market is projected to reach US$64 billion by 2021, from US$44 billion in 2016.

Ramping up on cannabis

Rhinomed says that in 2021, it will be targeting a range of unmet needs in the global CBD consumer health market.

The company will be leveraging its platform to target what it says is an $18 billion opportunity in the cannabis market.

Specifically, the strategy is to increase sales in its existing CBD product offerings by leveraging existing retail networks.

Some of the products it will be targeting include the Pronto Sleep Plus, Pronto Anxiety, Pronto Nausea, And Pronto Cold & Cough – all of which use Rhinomed’s CBD formulations.

Looking ahead

Looking ahead, Rhinomed says its focus will remain on reaching a sustainable operational cash flow position.

The company says a pipeline of high growth opportunity exists in prescription and diagnosis markets, as it positions itself for growth in the rapidly growing global nasal markets.

Rhinomed’s share price has risen by 115 per cent over the last 12 months.