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How bringing on suppliers reduced Tivic Health’s manufacturing costs

March 29, 2023 By Sean Whooley

Marketing image of Tivic Health ClearUp device for noninvasively treating sinus congestion

A marketing image of the ClearUp device [Image courtesy of Tivic Health]

Tivic Health Systems (Nasdaq:TIVC) announced today that a new partnership allowed it to significantly cut manufacturing costs.

The company completed the supplier qualification and first article inspection of Microart Services. Microart is one of two new partners the company announced at the end of last year.

San Francisco-based Tivic said the qualification and inspection helped to confirm that Tivic’s production process remains under statistical control. It also demonstrated the production of safe, high-quality products in compliance with Tivic’s specifications and regulatory requirements.

Through the partnerships with Microart and ALOM, the other supplier, Tivic observed up to a 30% reduction in 3PL costs. It also saw a 40% reduction in final assembly production costs per unit.

According to a news release, Tivic increased its production capacity by up to 25 times. It projects an overall cost of goods reduction forecast for the year of 37%.

“Working with Microart has allowed us to reduce our printed circuit board manufacturing costs by 70% and increase production capacity by 25X,” said Ryan Sabia, Tivic COO. “We expect that this will be an accelerator for scalable growth.”

Tivic develops noninvasive neurostimulation devices to treat various health symptoms. It markets a small, handheld ClearUp device directly to consumers through its website and through online retailers including Amazon, Best Buy and Walmart. It is FDA-cleared to treat allergy-related sinus pain as well as congestion from allergies, cold and flu.

CEO Jennifer Ernst spoke to Medical Design & Outsourcing about the bioelectronic medicine space last year.

About The Author

Sean Whooley

Sean Whooley is an associate editor who mainly produces work for MassDevice, Medical Design & Outsourcing and Drug Delivery Business News. He received a bachelor's degree in multiplatform journalism from the University of Maryland, College Park. You can connect with him on LinkedIn or email him at swhooley@wtwhmedia.com.

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  • Home
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