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CardieX’s digital transformation remains on track: MST Access

CardieX’s ATCOR division is the world leader in medical devices for measuring arterial stiffness and central blood pressure waveforms.

Cardiex Ltd - CardieX’s digital transformation remains on track: MST Access
MST Access has increased its base-case valuation of CardieX to 10.3 cents per share

Cardiex Ltd (ASX:CDX) recently entered a commercial partnership agreement with Mobvoi, Google’s wearable platform partner in China, to launch a next-generation smartwatch.

The company also entered into an agreement with China-based medical device company Andon to develop a cloud-connected blood pressure monitor.

Both these agreements significantly accelerate CardieX’s strategy of leveraging its novel FDA-cleared central blood pressure (cBP) technology into new market verticals globally.

MST Access has increased its base-case valuation for CardieX to 10.3 cents per share from 8.2 cents per share after the announcements.

The following is an extract from MST Access’ update on CardieX:

First Wearable Consumer Product for CardieX

The new Mobvoi smartwatch will represent the first integration of ATCOR’s wearable health analytics platform known as ArtyTM (an anagram of “Heart” and “Artery”), and will feature branded measures of heart stress, heart age, exercise capacity (eCapTM), and an overall heart health score which the company is branding as an “ArtyTM Score”. CardieX is also developing active community and AI-powered health coaching services for the new device. The initial six-month market release of the new Mobvoi smartwatch in Q1CY2021 in the US will herald the first wearable device for the company and the first of multiple new devices planned by CardieX over the next 15 months.

Under the two-year agreement, Mobvoi will drive commercialisation in North America, while Cardiex will hold distribution rights in Australia, New Zealand and non-competitive channels in North America. The smartwatch will be marketed with a CardieX trademarked Health360TM premium subscription service, which includes a three-month free trial. Following the free trial, consumers will be required to pay a per-month subscription fee, which will be split 60:40 between CardieX and Mobvoi. Following the initial six-month release period, both companies will determine a full worldwide market release strategy.

Andon Partnership Targets Home BP Market

On 7 September 2020, Cardiex also announced a joint development agreement with Andon to co-develop and manufacture a home blood pressure monitoring device incorporating ATCOR’s patented SphygmoCor® technology and a world-first series of multiple new patented-pending health analytics. Andon (002432.SZ) is one of China’s largest manufacturers of home-use medical electronic devices with a market capitalisation of ~ RMD 5.3B (A$1B). The new consumer device will be marketed as the ATCOR “Pulse” and will integrate with ATCOR’s companion app, cloud infrastructure, and multi-platform physician portal to support remote patient monitoring and telehealth communications. In addition to conventional blood pressure parameters, the ATCOR “Pulse” will measure central blood pressure, heart rate, arterial stiffness, arterial age, heart stress, and will also render a “Vital Risk Score TM”, a users exercise capacity (eCAPTM), and an ArtyTM Score which measures overall cardiovascular health. On launch, the “Pulse” will be the first vital signs monitor that brings specialist level diagnostics and health data into the home and into the hands of consumers. Under the three-year agreement, Andon will be responsible for obtaining regulatory approval in all target markets. These include the USA, Australia, Europe and China with commercial launch slated for 4QCY2021. Importantly, US regulatory approval will provide access to reimbursement for physicians for remote patient monitoring through Medicare and Medicaid. ATCOR revenues will be generated through the sale of its SphygmoCor® chip to Andon, the retail & online sale of ATCOR “Pulse” devices, together with subscription revenue from the ArtyTM app and SaaS revenues from physicians.

Strategy Remains Intact – Scope for Multiple Partnerships and Markets

Under the Andon agreement, all intellectual property pertaining to ATCOR technology is retained by ATCOR exclusively. ATCOR also has the sole exclusive right to distribute the ATCOR “Pulse” device in certain defined global markets. Importantly, the company remains free to continue developing its product offering with other partners in the consumer home health and professional primary care markets consistent with its stated corporate strategy. Similarly, on the wearable front, under the Mobvoi agreement, CardieX remains free to licence its proprietary technology platform to third party device manufacturers to other major device companies. CardieX is also continuing to fast-track its own in-house wearable for the medical market targeted at the 100m+ Americans that suffer from hypertension. Details of that new device at this stage are being closely guarded by the company.


Our base-case valuation has risen to 10.3 cents per share using DCF methodology. This compares with 8.2 cents per share previously and incorporates time value of money and the increase in shares on issue following the company’s recent A$2.37m capital raise after costs.

Quick facts: CardieX Ltd

Price: 0.115 AUD

Market: ASX
Market Cap: $105.99 m

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CardieX Limited signs disruptive deal with Chinese medical device company Andon

CardieX Limited (ASX: CDX) CEO Craig Cooper joined Steve Darling from Proactive with news the company has entered a co-development and commercial partnership agreement with Andon. Andon is one of China’s largest manufacturers of home-use medical electronic devices. Cooper talks about the deal...

on 9/9/20

4 min read