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CardieX on track to launch new products and digital solutions in 2021

Snapshot

The company is well funded and has a strong sales pipeline to launch new devices in home vital signs monitoring and consumer wearables markets.

Cardiex Ltd - Cardiex on track to launch new products and digital solutions in 2021

Quick facts: CardieX Ltd

Price: 0.097 AUD

ASX:CDX
Market: ASX
Market Cap: $89.4 m
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CardieX Ltd (ASX:CDX) is gearing up to expand its products and market access in 2021, after successfully completing a share purchase plan at $0.05 per share to raise $3.207 million.

The funds will be used to drive the development of new products and digital solutions including the ATCOR ‘Pulse’ consumer health device which is on track to launch this year.

Additionally, the company expects prototypes of its new smartwatch in partnership with Mobvoi to be delivered in early 2021.

ATCOR Pulse launch

In September 2020, CardieX signed a three-year co-development and commercialisation agreement with Andon Health Co Ltd (SHE:002432) which provides for the development and commercialisation of new medical and consumer health devices for home-use based on ATCOR’s patented and global standard SphygmoCor® technology for measuring central blood pressure and arterial stiffness.

The first device under the agreement, ATCOR ‘Pulse’ is targeted for commercial launch in the US, Europe, Australia, and China in the fourth quarter of 2021.

When paired with ATCOR’s Arty™ app, the device will provide full remote patient monitoring of a patient’s vital signs at home and will also be fully telehealth-enabled with video, chat, messaging, customizable screens, and full vital signs sharing features between clinician and patient.

Notably, the agreement expands the commercial market opportunity for CardieX into the home consumer health device market, which is estimated to be worth $US2.5 billion annually and the remote patient monitoring market, which is estimated to reach $US43 billion by 2027.

Mobvoi smartwatch

Last year the company entered a new commercial agreement with Mobvoi, one of China’s most innovative AI, wearable and tech companies and a global leader in smartwatches, which expanded on the existing Joint Development Agreement (JDA) initiated between the two companies in 2019.

The companies will jointly launch a new line of consumer smartwatches with a heart and arterial health management feature-set based around ATCOR’s SphygmoCor® technology for measuring central arterial waveforms.

Mobvoi will be responsible for developing the hardware and firmware for the new smartwatch, while CardieX will integrate a proprietary Mobvoi specific algorithm feature set based on the company’s Arty™ health analytics platform into the smartwatch.

The new smartwatch will be the first in the world to feature the company’s Heart Stress™, Arterial Age™, Exercise Capacity™ (eCAP™) and Arty™ Score with active community and AI-powered health coaching services using CardieX subsidiary ATCOR’s new patent-pending PPG based sensor technology.

Sales growth for 2021

In the second half of 2020, the company enjoyed record half-year sales and is on track for a 30% increase for the first six months of FY2021 compared to the same period in FY2020.

CardieX believes this is due to the continuing strength in research sales and new clinical trial contracts with Bayer AG.

Notably, with widespread vaccine distribution about to commence, the company also expect sales to the traditional clinician market to recover strongly as the US comes out of continuing lockdowns and stay-at-home orders.

Wearable demand increasing

As a guide to the impact of this ATCOR Pulse device on the revenues for the company, the current device sales of the XCEL central blood pressure monitor (which constitutes the most significant portion of sales) are in the low hundreds annually.

The volume sales of the new devices targeting the consumer market are anticipated to be exponentially higher based on CardieX’s internal market forecasts and anticipated product demand.

Trial contract revenue

In August last year, CardieX announced that global pharmaceutical company Bayer AG (OTCMKTS:BAYRY) and CardieX subsidiary ATCOR, entered into a new amended agreement for both the lease of ATCOR devices and the provision of expanded data management services for Bayer’s ‘AVANTI’ trial.

The total value of this contract and ongoing trial has now been increased an additional US$420,000 to US$1.68 million and the term of the contract has been extended through to June 2021 with the additional revenue to be accrued by the company in FY2021.

In October, ATCOR also executed a new clinical trial contract with Bayer for a new trial using the SunTech/ATCOR-enabled 24-hour blood pressure monitoring device (Oscar 2) totalling around US$110,000.

The company expects that new trial contracts in the near future will add new incremental revenue in 2021.

Corporate division restructure

CDX has also restructured its corporate operations into two divisions to allow focused efforts around unique sales, marketing and development activities.

The traditional sales and operations of the company’s specialist medical, research, and clinical trial business will be undertaken by the ‘ATCOR Medical’ division, headed by Chris Dax, the current president of ATCOR.

New product development in the consumer, home, wearables, and digital health markets (including the new Pulse and Mobvoi Smartwatch initiatives) will be undertaken by the company’s newly created ‘ATCOR Wellness’ division, headed by Mark Gorelick.

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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