Subject: Medicalgorithmics Group introduces its solutions to the UK market
Current report no.: 3/2023
Date of preparation: January 19, 2023
Legal basis: Article 17 par. 1 of the MAR Regulation – confidential information.
Management Board of Medicalgorithmics S.A. with its registered office in Warsaw (“Issuer”, “Company”) informs that on January 19, 2023, the Company signed a strategic distribution agreement (“Agreement”) with Express Diagnostics Limited based in Plymouth, United Kingdom (“Express”).
Express is the largest provider of heart monitoring and ECG analysis services in the UK. The agreement covers distribution of PocketECG, and AI, including in the future Deep Rhythm AI, and analytics technologies (Products).
The agreement becomes effective at the moment the registration process of the PocketECG in the territory of the United Kingdom is completed along with fulfilment of other necessary requirements under the UK law enabling release of the Products on the UK market and their distribution.
The Agreement shall remain in force and effect until terminated with 12 months’ notice period or immediately in the event of a material breach. Additionally, Express has the right of first refusal to purchase or distribute in the UK any new or previously undisclosed technologies or devices developed by Company for the Cardiovascular Health Care Market. This right expires in 30 days after notification by the Company.
The Agreement was concluded at market terms, and in accordance with the commonly used standards. The Agreement is subject to and will be interpreted in accordance with Polish law.
The contract does not provide exclusivity for the UK market, as the strategy of Medicalgorithmics is to establish cooperation with the largest entities in the UK medical services market to provide UK patients with access to the leading-edge heart diagnostic technologies.
The Agreement does not establish revenue or sales target levels for 2023, and states that the sales targets for 2024 and the consecutive years of the Agreement will be agreed upon in 2023.
According to the Company estimates, the UK cardiac monitoring market is large, with more than 3,000 cardiologists and 75,000 general practitioners. More than 1,700,000 people are affected by atrial fibrillation in the UK. The ambulatory ECG market in the UK grows dynamically, with CAGR (Compound Annual Growth Rate) of 6% over the last 5 years. This growth is driven by the aging population resulting in an increase in the number of cardiac arrhythmia patients in the UK, which is projected to reach over 3 million by 2025.
In the opinion of the Company Management, the conclusion of the agreement with Express Diagnostics and thus the entry into the British market is the result of the new strategy of dynamic expansion in global markets announced last year at the point of merger with Biofund. This expansion will be continued in 2023. The strengthening of the company by the Biofund investor and their innovative AI technologies, as well as the expanded portfolio of cardiovascular solutions – thanks to the subsidiary Kardiolytics and its VCAST technology – enables creation of an attractive, and complementary offer of cardiovascular solutions, and opens up Medicalgorithmics Group to entirely new markets.
The Management Board decided to publish this information at the point of signing this Agreement as it signifies entry of the Company’s Products into a new, significant market of the United Kingdom.
Additionally, the Company informs that since publishing of its consolidated half year financial report of 2022 on September 29, 2022 it entered into a distribution agreement covering the Israeli market with SysteMedic.