Local pharma firms to distribute Funhaler

Perth-based biomedical devices developer Visiomed Group (ASX:VSG) has successfully competed negotiations with three pharmaceutical wholesale distributors in Australia for the distribution of its Funhaler incentive asthma spacer into Australian pharmacies.

Sigma Wholesale (ASX:SIG), Australian Pharmaceutical Industries (ASX:API) and Mayne (ASC:MAY) have agreed to collectively distribute the Funhaler to approximately 5000 pharmacies.

"It is just the beginning -- we are on the way. They are the three big players and represent penetration into 90 per cent of the Australian market. This gives us the full exposure we need and is a key deal for Visiomed," said Visiomed CEO Bill Dolphin.

The company has also entered into discussions with major distributors in the US and Europe. "My target is to have the Funhaler in the US and European markets by mid-2006," Dolphin said.

The Funhaler is a paediatric incentive spacer for the effective delivery of asthma drugs. "The major issue has been adherence -- the Funhaler has been shown in independently published data to increase adherence and delivery of asthma medication -- it offers the incentive, feedback [to both child and caregiver] and encouragement [to the child] to ensure that they are following their prescription medication plan," Dolphin said.

In April 2005 Visiomed contracted the services of Cottman Australia, a subsidiary of Advance Healthcare Group (ASX:AHG), as the exclusive distributor of the Funhaler in Australia. Since then the Funhaler has been distributed through Cottman's sister company, Pharmeasy, AHG's medication management and pharmacy products home delivery service, and the Asthma Foundation throughout Australia. Visiomed said it had sold about 4500 Funhaler spacers to date.

The company is increasing its manufacturing capacity to meet the anticipated demand in Australia and overseas.

"We can meet demand for Australia and are doing a complete redesign for manufacture for the rest of the world. The new manufacturing will increase the scale and also efficiency which will reduce cost," said Dolphin.