Medicalgorithmics, a prominent medtech company listed on the Warsaw stock exchange and part of the sWIG80 index, has finalized a software distribution agreement with Bittium Biosignals Ltd (“Bittium”), a subsidiary of Bittium Corporation, a global provider of secure communication solutions, engineering services, and medical technologies, including devices for diagnosing arrhythmias, listed on the NASDAQ Helsinki. This contract is a direct result of the October 2023 memorandum, which focused on software integration and evaluation, demonstrating the efficacy of Medicalgorithmics’ software in conjunction with Bittium’s devices and its potential for significant collaborative growth and value creation.
Operating on a global scale, Bittium delivers devices across multiple continents including Europe, North and South America, Australia, Asia, and Africa. The company has provided its clientele with biosignal measuring and monitoring devices and technological solutions, particularly in the areas of remote cardiac monitoring. In 2023, Bittium Group’s total net sales were 75.2 million EUR. Per the agreement, Bittium will distribute Medicalgorithmics software as a non-exclusive distributor across its global markets. This software, encompassing cloud solutions and AI algorithms, is designed for the analysis and reporting of ECG/arrhythmia diagnostic sessions and integrates seamlessly with devices supplied by Bittium. Bittium plans to market Medicalgorithmics’ AI-driven software through its sales channels. The software will be offered under a white-label arrangement but will clearly inform customers of its Medicalgorithmics origin. The collaboration is structured on a revenue-sharing model, where payments are correlated with the partner’s revenues from ECG measurements and analyses conducted using Medicalgorithmics’ AI software.
“The software integration and validation process demonstrated the high potential of mutual cooperation and increased efficiency in ECG signal analysis. This includes optimizing ECG technicians’ working time and enhancing ECG report generation. Medicalgorithmics’ software is efficient, scalable and effective, making it ideal for larger diagnostic service providers. It will improve clinical operation efficiency for Bittium’s client portfolio, Bittium, with its global customer base, can rank as one of our top clients within the next couple of years,” comments Jarosław Jerzakowski, COO, at Medicalgorithmics.
“Continuous improvement of product quality and development of features is important to us, and through partnership with Medicalgorithmics we are able to offer our customers scalable ECG analysis software suits so even more comprehensive solutions. Our Faros ECG measuring devices have an open interface, and through development cooperation with third parties, we aim to improve our customers’ user experience, offer options for different types of customer needs, and expand our market,” says Laura Kauppinen, the Senior Vice President of Bittium’s Medical Business Segment. “The healthcare technology market is evolving, and the importance of remote monitoring and remote diagnostics in patient care is constantly growing. More and more efforts are being made to prevent diseases and health problems with the help of early diagnostics, and the aim is to send patients home at an ever earlier stage to reduce hospital and treatment days,” Kauppinen continues.
In this partnership, Medicalgorithmics will provide a comprehensive technological platform for arrhythmia diagnosis, utilizing its proprietary AI algorithms. The system has already been successfully commercialized in 22 countries, and existing regulatory approvals allow its introduction in over 50 markets.
The initiation of the agreement’s implementation just within several weeks after the signing of the MoU underscores the Company’s adeptness in executing strategic objectives, specifically in integration and the successful evaluation of the benefits from the Company’s Software for the global Partner.
“The conclusion of this agreement confirms that our cloud-based and AI-driven software significantly enhances the efficiency of ECG analysis. Our algorithms detect 26 types of arrhythmias and cardiac abnormalities, which are among the best results in the market. This significant advantage is one of the main factors in successfully implementing a strategy to open our software for ECG signal from external hardware providers and establish new partnerships. It also shows our operational agility, as we can integrate and evaluate effectiveness with any ECG examination device within several weeks. Sales in this new model open up a much larger market for us,” adds Przemysław Tadla, CTO at Medicalgorithmics.
This Agreement represents a significant milestone in the implementation of the Company’s strategy announced in June 2023, created with Medicalgorithmics’ main shareholder, Biofund Capital Management LLC. The Agreement exemplifies the effectiveness of the Medtech’s sales growth strategy through opening the Company’s technology for integration with devices from other suppliers and thereby reaching a potentially significant number of new service recipients, marking a significant element in the Company’s projected revenue and value growth for the coming years. Medicalgorithmics’ strategy has shifted its business model, moving away from offering a closed ecosystem of cardiac diagnostics tied to its own heart monitoring devices. In the new strategy, it focuses on selling its ECG signal analysis system with proprietary AI as a standalone product and integrating it with partners’ devices and IT systems. Medicalgorithmics software is available as a service, and the company receives compensation in various models, including based on the number of ECG data analyses performed.
“The agreement represents a significant milestone in Medicalgorithmics’ shareholder value creation path, showcasing the potential of the Company’s growth strategy based on the openness of proprietary state-of-the-art technology and integration with other providers’ devices, thereby quickly scaling up the business on a high operational leverage basis that is with no linear cost increase. Noticeably, we parallelly focus on implementing other announced high-potential projects, including the NASDAQ top 3 US player and the European leader in global cardiac diagnostic services,” says Maciej Gamrot, CFO of Medicalgorithmics.
About:
Medicalgorithmics is a global technology provider of non-invasive cardiac diagnostics monitoring software based on artificial intelligence. The company uses its proprietary AI system for ECG arrhythmia diagnostics. AI algorithms enable heart function monitoring analysis, cardiological analysis, and diagnosis. The Polish company’s solutions streamline work processes by optimizing the time and resources needed for cardiological study analysis. Its arrhythmia diagnostic software can detect 26 types of arrhythmias and cardiac abnormalities, one of the best results worldwide. The company also develops and commercializes VCAST technology, enabling non-invasive measurement of blood flow pressure in selected coronary vessels based on computer tomography images.
Bittium Corporation is a NASDAQ Helsinki-listed entity specializing in telecommunications and connectivity technologies, utilizing over 35 years of experience in advanced radio communication technologies. Bittium offers products and services in medical technology for biosignal measurement in cardiology and neurophysiology. Bittium Group’s net sales in 2023 were EUR 75.2 million. More information at: https://www.bittium.com.
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