Current Report No: 31/2023
Date of Preparation: October 20, 2023
Legal Basis: Art. 17 para. 1 of MAR Regulation – confidential information.
The Board of Medicalgorithmics S.A. based in Warsaw (“Company”; “Issuer”) announces the signing, on October 20, 2023, of an agreement (Memorandum of Understanding, “Agreement”) with a publicly traded device manufacturer with global operations and significant emphasis on cardiac monitoring and arrhythmia diagnostic devices (“Partner”). The Agreement’s objective is to assess potential long-term collaboration aiming for the joint commercialization of the Issuer’s cloud ECG diagnostic solutions. The first step in assessing the potential of the partnership will be the implementation of a commercial pilot program, during which the Company will integrate and test the software with a selected Partner’s client. The details of the paid pilot program, including the pricing for services, especially the EKG analyses conducted by the Issuer, will be specified in a separate agreement or pilot agreements. According to the Agreement the pilot program’s goal is to evaluate the efficiency enhancement and added value achieved in diagnostic processes by the client and Partner using the Issuer’s software, which incorporates cloud solutions and artificial intelligence (AI) algorithms for ECG diagnostics.
This Agreement marks another step in implementing the Company’s strategy adopted after Biofund Capital Management LLC became its major shareholder, as published in the Issuer’s current report No. 16/2023 dated June 19, 2023.
The Partner, with whom the Company signed the Agreement, is a significant entity in the medical technology market for cardiological applications and a global device provider in Europe, North America, Asia, Africa, and South America. The Company believes that entering into this Agreement could have substantial potential due to the possible significant scale of collaboration and revenues for the Issuer. Should a decision be made to continue the collaboration after the commercial pilot program covered by the Agreement, a separate agreement on this subject will be signed. The separate agreement would set the provisions of the potential collaboration, including provisions of a revenue-sharing model from arrhythmia diagnostics of the shared Partner’s clients affected by the collaboration and pricing for the conducted services, especially EKG analyses. If a cooperative agreement is concluded after conducting the pilot and mutual intentions are confirmed, the Company will immediately inform about it in a separate current report.