Medicalgorithmics, part of the sWIG80 medtech index, estimates a steady stream of revenues from AI services sales to three new clients in the IDTF (Independent Diagnostic Testing Facility) market in the USA at USD 110.1 thousand, or approximately PLN 440 thousand, on average per month. This value is expected to grow steadily. The company is working on commercially launching services for additional clients and is engaged in advanced discussions to sign new contracts.
The patent, numbered US20240120110A1, was issued in early April. It details a method for modeling arterial blood flow that allows for the analysis of atherosclerotic plaque surface deformation and the stress acting upon it. This innovation is instrumental in the VCAST technology developed by Kardiolytics, which aims to enhance the diagnosis and treatment of heart disease, particularly by assessing the risk of plaque rupture or erosion.
Since the beginning of the year, Medicalgorithmics has started providing services for three new IDTF clients in the USA. The company receives payments from them based on the number of ECG data analyses performed each month by its AI system. Based on current revenues and their growth dynamics, Medicalgorithmics has published estimates showing the expected revenues over the next twelve months. The value of the commercially launched contract portfolio was estimated at USD 110.1 thousand on average per month, or approximately PLN 440 thousand. This means that from May 2024 to April 2025, providing services to these three IDTFs alone should generate over PLN 5 million in revenue.
The company also reported that in the first quarter of 2024, the value of revenues from the sale of diagnostic services and heart monitoring devices to clients in the US IDTF market in the USA amounted to PLN 1.2 million.
The revenue stream from the contracts will steadily grow as Medicalgorithmics acquires new clients. In March this year, the company signed agreements with G-Medical (an IDTF in the USA) and the Canadian Cardiac Centre. The integration of the Polish medtech’s diagnostic platform with the systems of these new clients is currently underway. Upon completion, the company will begin commercially providing ECG signal AI analysis services. Medicalgorithmics is also working on acquiring additional new clients in the USA and globally. In the US market, it has identified a group of 115 IDTFs that may be interested in its technology, including the use of its AI algorithm software to optimize clinical operations and the ECG data analysis process.
“One of our main business goals for this year, which we are consistently and successfully achieving, is rebuilding our revenue base in the USA. If the current pace of revenue growth in the American market is maintained, we expect to achieve this goal by the turn of the third and fourth quarters of this year. The United States is a key market for advanced cardiological diagnostic services. As a provider of innovative solutions based on proprietary AI algorithms, we aim to have a strong position there, based on a broad client base,” says Jarosław Jerzakowski, the company’s COO responsible for sales and operations.
“As part of our new strategy, we have already acquired nine new clients, including five IDTFs in the USA. Cooperation with new partners is starting to generate an increasingly larger stream of recurring revenues. Given that instead of one large client in the US market, we are consistently adding new ones, we decided to present the market with specific estimates of the expected average monthly revenues from these agreements in the form of an SEC current report. We will continuously update these data as we commercially launch additional new contracts, meaning the value of the estimated revenue stream should steadily grow. Our goal is to acquire at least two new clients per quarter, reach monthly revenues in the second half of the year at the level of Q4 2023, and shortly thereafter, generate positive overall cash flows,” emphasizes Maciej Gamrot, the company’s CFO.
IDTFs (Independent Diagnostic Testing Facilities) are important elements of the US healthcare system. These are independent diagnostic centers, separate from hospitals and other medical facilities, where medical tests are performed. The size of the IDTF services market in the USA is estimated at approximately USD 3.5 billion annually.
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