Electromed announced the results of an independent, outcome-based clinical study presented during the third annual World Bronchiectasis Conference in Washington D.C. The study's findings reveal that early use of high frequency chest wall oscillation therapy with the SmartVest Airway Clearance System significantly reduced severe exacerbations and hospitalizations among non-cystic fibrosis bronchiectasis patients. The study is the first to report "stabilization of key lung function parameters" as a result of HFCWO use, suggesting early bronchiectasis treatment with HFCWO may significantly slow the otherwise normal progression of the disease. "We are thrilled not only by the results of this study, but the significant milestone it represents," commented Kathleen Skarvan, President and Chief Executive Officer of Electromed. "This is the first independent study to evaluate bronchiectasis-related exacerbations using HFCWO therapy. The results confirm what we've said all along: incorporating the SmartVest into bronchiectasis treatment significantly reduces exacerbations and improves patient outcomes."
Electromed announced that the Internal Revenue Services, or IRS, has agreed to refund the company approximately $406,000 related to federal medical device excise taxes paid on revenue associated with the sales of its SmartVest Airway Clearance System during the company's tax periods ended June 30, 2014 through December 31, 2015. This refund from the IRS will be recognized in the company's financial statements during the fiscal quarter ending June 30, and is the result of an examination the company concluded with the IRS on May 22 that determined the SmartVest was eligible for the retail exemption from the medical device excise tax. Furthermore, the company will be exempt from the medical device tax after the conclusion of the current two-year medical device tax moratorium, which is scheduled to end on December 31, 2019.