Nanosonics (ASX:NAN) revises model with GE & lowers sales guidance

Company News

by Lauren Evans

Nanosonics (ASX:NAN) has revised its current sales model with GE Healthcare in North America, with changes set to come in this month ahead of the expiry of the current contract in June.

The healthcare manufacturer downgraded its sales guidance for FY22 by $13 million to $16 million as a result of the changes. Total sales are now expected to finish at $60.6 million in the first half of FY22.

The new model will see GE consume inventory and transition to a pass-through OEM sales model where GE continues to sell trophon disinfection devices.

Nanosonics will manage all inventory, ship, install and train the new customers who then become Nanosonics customers for ongoing provision of consumables under the new pass-through model.

The parties will begin a transition of all existing GE trophon customers to Nanosonics for the ongoing provision of consumable.

GE will then transition their ongoing sales of trophon to be made exclusively through the GE ultrasound sales force which has significant trophon sales experience.

Discussions with GE are also underway for a new OEM capital reseller agreement to come into effect from July 1.

The company said a one-off impact on North American revenue is expected in the second half of FY22, primarily associated with GE.

Shares in Nanosonics (ASX:NAN) are trading 6.9 per cent lower at $4.69. 
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