Medicalgorithmics Group Performance Summary for 2017 and Growth Prospects
Medicalgorithmics S.A., a provider of cardiac diagnostic solutions, has published financial performance results for 2017. For the first time, the Group’s sales exceeded PLN 200 million, while maintaining high margins on operations. EBITDA reached PLN 54.3 million, while net profit attributable to shareholders of the Parent Company amounted to PLN 25.5 million. Despite its dynamic growth, the Group reduced its debt and at the end of the year its financial liabilities less cash amounted to PLN 40 million.
Double-digit increase in revenue and number of requests
In 2017, the Group’s revenue was PLN 203.4 million, which is 59% more than last year. The Groups’ sales derive from the number of diagnostic services provided in a given period by Medi-Lynx customers. In 2017, the number of payment requests submitted to insurance companies in relation to provided diagnostic services reached 95 thousand, which is 70% more than in 2016. In the fourth quarter, 25 thousand requests were submitted, which represents an increase by 91% YOY.
Significant increase in sales revenue and number of performed tests was possible thanks to taking over the customers of AMI Monitoring, Inc. in the first quarter of 2017 and including the financial results of Medi-Lynx Cardiac Monitoring, LLC (“Medi-Lynx”) in the consolidated results for the entire analyzed period. In 2016, Medi-Lynx results were consolidated from the acquisition date, i.e. 03/30/2016.
Initiatives and achievements in 2017
In 2017, the Group undertook a number of efforts to support the sales process on global markets, including the key U.S. market. Since the second quarter, we have been conducting intense marketing activities aimed at increasing the awareness of selected healthcare professionals and patients about the competitive advantages of the PocketECG technology and strengthening the image of Group members as expert companies. As part of the expanding sales to new markets, the Company has concluded contracts with trading partners in Denmark, the Czech Republic and Italy.
The development of new products progressed as planned. The company has completed the process of registration of its new product, a system for home cardiac telerehabilitation, in Poland and has received permission for its commercialization from the Office for Registration of Medicinal Products, Medical Devices and Biocidal Products (Urząd Rejestracji Produktów Leczniczych, Wyrobów Medycznych i Produktów Biobójczych). As a result, in 2017 a pilot implementation of the system at the John Paul II Specialist Hospital in Kraków was launched. The PocketECG CRS rehabilitation system received very positive references from doctors, physiotherapists and patients.
In terms of product development, the Company continued to improve PocketECG – a system for diagnosing cardiac arrhythmia. Last year, the measurement and interpretation of the patient’s physical activity was enhanced.
In addition, at the end of 2017, the Company received funding from the National Centre for Research and Development for the ECG TechBot project. It is dedicated software that uses a set of algorithms for automatic analysis and interpretation of an ECG signal based on the so-called deep learning methods.
Further growth of the Medicalgorithmics Group
“In the coming years, we will strive to strengthen the Medicalgorithmics Group’s position among the leading providers of state-of-the-art cardiac telemetry technologies, not only in the United States, but also in other countries around the world. To achieve our goal, we plan to employ the latest technologies in order to improve the quality of life of cardiology patients and to assist doctors in making accurate diagnoses,” said Marek Dziubiński, the President of the Board of Medicalgorithmics S.A.
In 2018, the Company will continue its efforts in Europe to create reimbursement codes for the long-term arrhythmia monitoring service in Germany and the UK.
Medi-Lynx, a Group company providing diagnostic services, plans to continue a comprehensive information and image campaign of the PocketECG system as part of its business development in the United States. In 2018, the Group also plans to initiate pilot implementations of the new product – PocketECG CRS, a system for home cardiac telerehabilitation – in the United States.
“I believe that the initiatives taken will contribute to a systematic increase in the number of services we provide as well as to a higher revenue and customer satisfaction in the years to come. Successful delivery of the said objectives, combined with effective cost management, will go a long way toward creating value for our Shareholders,” added Marek Dziubiński.