Medicalgorithmics SA, a medtech company listed in the sWIG80 index, has acquired its fourth client in the American IDTF market – independent diagnostic facilities that serve hospitals and medical offices. The company’s new partner, G Medical, will use a proprietary comprehensive system for arrhythmia diagnostics, which primarily includes software and AI algorithms for EKG signal analytics from various heart monitoring devices offered by the new client.
According to the agreement, Medicalgorithmics will license G Medical diagnostic software, based on proprietary artificial intelligence (AI) algorithms. The new client, a technology company and an IDTF, based in Texas, will use this solution to optimize the process of diagnosing heart rhythm disorders to improve the quality of services provided to its clients. Medicalgorithmics will receive a monthly fee, the amount of which will depend on the number of EKG studies performed. The new partner has expressed interest in broader cooperation, also in joint EKG monitoring technology development.
– We are accelerating our expansion in the American market by acquiring a company that has been operating as an IDTF in the USA for years as our next client. The new partner is the fourth IDTF for which we will start providing services this year. We are conducting advanced discussions and tests of our solutions and algorithms with six more independent diagnostic centers. In total, we are targeting 115 IDTFs in the American market that may be interested in accessing our technology and artificial intelligence system in various business models. This shows that the strategic decision made last year to end exclusive cooperation with one IDTF already delivers positive impact on the company’s business this year. We are fulfilling the promise made during the recent Investor Day by acquiring the second client – after Bittium – this quarter. We maintain that our goal is to acquire at least two new clients quarterly,” says Jarosław Jerzakowski, Medicalgorithmics Board Member for Operations and Sales.
G Medical is a rapidly growing IDTF based in Texas, USA, operating in several states, aiming to improve the quality and efficiency of remote patient diagnostics. The potential of the new partner is represented by Dr. Yacov Geva, president and CEO of G Medical, who is a well-known pioneer in the medical technology and EKG monitoring services industry. As the founder of LifeWatch AG, he successfully developed the company until 2017, when it was acquired by American BioTelemetry Inc. (now part of Philips Group) for approximately 280 million dollars.
In January, Medicalgorithmics began providing services for two IDTFs, and by the end of February, it had acquired a third partner in this market. The company can cooperate with diagnostic centers in the USA based on three business-technological models: delivery of the entire diagnostic system along with PocketECG heart monitoring devices; delivery and implementation of the diagnostic platform analyzing data collected by third-party devices, and licensing of AI algorithms DRAI.
Independent Diagnostic Testing Facility (IDTF) are important elements of the American healthcare system. These are diagnostic centers independent from hospitals and other medical centers, where medical examinations are performed. The size of the IDTF services market in the USA is estimated at about 3.5 billion USD annually.
According to the development strategy announced in June 2023, created under the leadership of Medicalgorithmics’ main shareholder – Biofund Capital Management LLC – the company changed its business model. It moved away from offering only a closed cardiac diagnostic system, linked to its own heart monitoring devices. In the new strategy, it focuses on selling a platform for analyzing multi-day EKG records along with proprietary AI algorithms as a standalone product and integrating them with devices and IT systems of partners. Medicalgorithmics software can be licensed by clients, and the company will receive compensation in various models, including one based on the number of EKG data analyses performed.
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