Medicalgorithmics, a medtech company included in the sWIG80 index, has initiated the monetization of agreements with new clients in the IDTF market in the USA. In the second half of 2023, the company secured three such partners. In January, the first invoices were issued to two of them for equipment deliveries and heart data analysis services utilizing the artificial intelligence (AI) algorithm developed by the Polish company. The commencement of service provision for the third entity is scheduled for March.
Aligned with the strategy announced in June 2023, Medicalgorithmics has transformed its business model in the American market. Instead of exclusive partnerships with a single entity, the company embarked on building a network of partners in the latter part of the previous year. These partners receive open-access services for analyzing ECG data of patients’ heart activity. The company has already signed three contracts with Independent Diagnostic Testing Facilities (IDTFs), which are crucial components of the American healthcare system.
In January of this year, collaboration with two IDTFs entered the commercial phase. The first partner began conducting commercial analysis in January, and the collaboration with the second partner has a larger scope than initially anticipated. In January, the partner ordered an additional 200 units of PocketECG fourth-generation heart monitoring devices. In total, IDTF will start with over 400 Medicalgorithmics devices. Additionally, the company has provided them with a comprehensive ecosystem for heart data analysis, based on its proprietary AI-driven software.
The commencement of commercial service provision for the third IDTF is planned for March.
“As previously announced, we are commencing 2024 with new revenues from the American market. Following the successful phases of integration and implementation, we initiated commercial services for heart data analysis and device deliveries for two IDTFs in the USA in January. This marks the arrival of our first revenues from new partners as early as January. In the case of the third IDTF, the commencement of the commercial phase is scheduled for March. We are also actively expanding our network of business partners in the USA. We are in discussions at various stages of progress with additional IDTF facilities and other entities of similar or larger scale than our new partners,” said Jarosław Jerzakowski, COO and Member of the Management Board of Medicalgorithmics.
Independent Diagnostic Testing Facilities are independent diagnostic centers separate from hospitals and other medical facilities, where medical tests are conducted. The IDTF services market in the USA is estimated to be worth approximately $3.5 billion annually.
IDTF centers are not the only category of entities in the American market that Medicalgorithmics aims to collaborate with. The Polish medtech company is also working to secure partnerships with medical device suppliers or technological solution providers for the healthcare sector. In November 2023, the company also announced cooperation agreements with one of the three largest technology solution providers for cardiology in the USA, with shares traded on NASDAQ, and a European globally present manufacturer of ECG monitoring devices. The agreements, include integrating the Polish company’s artificial intelligence system and diagnostic software with the partner’s heart monitoring device. This resulting solution will then be evaluated for compliance with the partner’s technical and business requirements.
In accordance with the development strategy announced in June 2023, created with the participation of Medicalgorithmics’ main shareholder, Biofund Capital Management LLC, the company has shifted its business model. It has moved away from offering a closed system for cardiology diagnostics linked to its own heart monitoring devices. The new strategy focuses on selling its proprietary ECG signal analysis system along with its AI system as a standalone product and integrating it with partners’ devices and IT systems. Medicalgorithmics’ software is currently available as a service, and the company will receive compensation through various models, including those based on the number of ECG data analyses performed.
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