AVNS Stock Gains Following Direct Sales Deal for MIC-KEY in the UK

Avanos Medical, Inc. AVNS is set to assume direct control of sales and distribution for its MIC-KEY enteral feeding products in the United Kingdom, effective July 2025. This marks a strategic departure from its longstanding reliance on Vygon UK, which has served as the product distributor for nearly three decades.

The decision underscores Avanos' intention to strengthen its market presence by establishing direct relationships with healthcare providers and refining its service delivery. By internalizing sales operations, Avanos aims to ensure uninterrupted access to MIC-KEY products while offering a seamless experience to hospitals, clinicians and patients.

Likely Share Price Movement of AVNS

AVNS’ shares gained 1.2% on April 3 following the announcement of the deal. The company’s shares have lost 8.8% so far this year compared with the industry’s decline of 5.8%. The S&P 500 Index fell 4.8% in the said period.

Avanos' decision to directly manage MIC-KEY sales and distribution in the UK represents a strategic realignment aimed at strengthening customer relationships, improving service efficiency and maintaining product availability. This move not only enhances its market control but also positions the company for sustained growth within the enteral feeding sector. As Avanos navigates this transition, its ability to execute a seamless handover and maintain strong customer support will be key to its long-term success in the UK market.

Enhancing Customer Engagement and Product Accessibility

Transitioning to a direct sales model enables Avanos to improve communication channels with healthcare professionals and end-users. By eliminating an intermediary, the company gains better control over product availability, customer service and technical support. This move is particularly significant in the enteral feeding segment, where reliability and timely supply of medical devices directly impact patient care. Avanos’ direct engagement with stakeholders will also allow it to gather real-time feedback, drive product innovations and tailor solutions to meet the evolving needs of healthcare providers.

Implications for Vygon UK and the Enteral Feeding Market

For nearly three decades, Vygon UK has played a pivotal role in distributing MIC-KEY products across the UK, developing strong relationships within the healthcare sector. While the transition marks the end of this partnership, Vygon has assured customers of its continued commitment to service excellence during the handover period. The enteral feeding market in the UK remains highly competitive, and Avanos' decision to directly oversee sales could signal a broader industry trend where medical device manufacturers seek to reduce reliance on third-party distributors in favor of direct engagement models.

Industry Prospect

Per a report by Grand View Research, the enteral feeding devices market in the UK is expected to earn revenues of $216.5 million by 2030. The UK enteral feeding devices market is anticipated to witness a compound annual growth rate of 6.4% from 2024 to 2030. In terms of revenues, the UK accounted for 3.3% of the global enteral feeding devices market in 2023.

Factors like the large geriatric population and the resultant rise in the incidence of malnutrition in the region and the introduction of advanced devices are likely to drive the market. Given the market potential, the latest deal is expected to provide a boost to Avanos’ business.

AVNS’ Global Brand Expansion and Market Control

MIC-KEY enteral feeding tubes are widely recognized and sold in over 60 countries, reinforcing their global brand equity. By bringing UK sales operations in-house, Avanos is aligning with its broader strategy of expanding direct market control in key regions. This approach not only strengthens the company's competitive position but also enables it to deploy more targeted marketing, training and support programs tailored to the UK healthcare system.

Avanos has emphasized its commitment to facilitating a smooth transition for healthcare providers and patients currently sourcing MIC-KEY products through Vygon UK. The company plans to provide ongoing communication, training and logistical support to mitigate any potential disruption in supply. As the transition date approaches, Avanos will guide healthcare facilities through the new ordering process to ensure continuity of care.

AVANOS MEDICAL, INC. Price

AVANOS MEDICAL, INC. price | AVANOS MEDICAL, INC. Quote

Zacks Rank & Stocks to Consider

Avanos currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the broader medical space are Masimo MASI, Cencora, Inc. COR and Boston Scientific Corporation BSX. You can see the complete list of today’s Zacks #1 Rank (Strong Buy)stocks here.

Masimo, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 20% for 2025. MASI’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.41%.

Masimo’s shares have gained 1.4% against the industry’s 4.5% decline so far this year.

Cencora, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 12.1%. COR’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 4.9%.

Cencora’s shares have gained 23.5% compared with the industry’s 4.2% growth year to date.

Boston Scientific, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.3%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.3%.

Boston Scientific’s shares have rallied 13.4% compared with the industry’s 7.6% growth so far this year.

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This article originally published on Zacks Investment Research (zacks.com).

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