Medicalgorithmics, a medical technology company listed on the Warsaw Stock Exchange, has announced its financial results for 2022. The company achieved 62.7 million PLN in revenue and 21.2 million PLN in EBITDA profit, in line with its preliminary estimates. In 2022, Medicalgorithmics’ consolidated revenue increased by 30% year-on-year to 62.7 million PLN. The company’s EBIT reached 17.2 million PLN, while EBITDA profit increased to 21.2 million PLN. The net loss, including financial costs related to the sale of the Medi-Lynx Cardiac Monitoring company in the United States, decreased to 30.5 million PLN. As of December 2022, the company had 25 million PLN in cash, and as of the end of March 2023, the cash balance was approximately 38 million PLN.
According to Maciej Gamrot, CFO at Medicalgorithmics, the improved financial results were due to increased sales and reorganizational actions, such as offloading the unprofitable Medi-Lynx, concluding an agreement with React Health Holdings, and moving away from the exclusivity model in the United States. Last year, the company secured Biofund Capital Management as a strategic investor, which provided the company with access to funding, technology, and experience in commercializing technology on the US medical market. In addition to a cash injection of 13.8 million PLN, Biofund contributed 100% of the shares in Kardiolytics with VCAST, a non-invasive diagnostic and cardiovascular imaging technology based on artificial intelligence developed by Kardiolytics.
The close cooperation between Medicalgorithmics and Biofund opens the way for further development in North America, strengthens the company’s AI competencies in cardiac diagnostics and monitoring, and supports the company in commercializing current and developing technologies, including VCAST. Last year, the US Food and Drug Administration (FDA) approved two solutions developed by Medicalgorithmics for use in the United States: cloud-based artificial intelligence algorithm DeepRhytmAI and the QPatch device.
Furthermore, Medicalgorithmics entered into an agreement with React Health Holdings Group to provide its solutions, including the PocketECG system. Additionally, Medicalgorithmics signed an agreement with React Health Holdings Group, which expired the exclusive license of these companies to use the company’s intellectual property and sell its products and services in the United States on February 28, 2023. As a result, Medicalgorithmics can now provide products and services to various entities in the United States, allowing it to gain new customers in its priority market.