HeraMED Limited (ASX: HMD) Australia’s leading medical technology firm, engaged into the business of developing, manufacturing as well as distributing fetal heartbeat monitors along with other pregnancy-related solutions.
On 26 April 2019, HeraMED Limited (ASX: HMD) released its March 2019 quarterly activities report for the period ended 31 March 2019. During the period, the company was able to secure a binding and exclusive distribution agreement with Dale Group International, Australia’s leading baby and toddler product supplier. As per the agreement, Dale Group International has become an exclusive Australian distributor of HeraBEAT.
HeraBEAT is the company’s first device that is medically precise and scientifically optimized wherein foetal heartbeat can be monitored through the smartphone. Through HeraBEAT, the expectant mothers are able to monitor the heartbeat of their foetus at any point of time enabling them to share the data related to the fetus’ vital signs with the medical professionals, allowing the parents to make sure that their foetus receives required medical attention.
As per the agreement, Dale Group is required to satisfy a commitment to order minimum 9,000 HeraBEAT units over a period of 3 years.
The company has marked its debut sales in Australia having received a purchase order of 250 units of HeraBEAT from the Dale Group International.
There was another agreement signed with the major Brazilian healthcare group, Hapvida Saude. It was another significant milestone for the company as it received its first order from Hapvida Saude for HeraMED’s SaaS and cloud-based platform HeraCARE which will be used in the pilot trial valued at US$60,000.
HeraMED would be generating additional revenue via its SaaS-based business model, HeraCARE for the first time.
HeraMED Limited also signed a manufacturing agreement with Quasar, a globally respected medical device manufacturer (dealing with companies like Johnson & Johnson, Unilever, Medtronic, etc), to increase the production of the HeraBEAT device as well as improve the manufacturing cost. As per the agreement, Quasar will be providing the company with a high-quality manufacturing partner and will make sure that the HeraBEAT device of the company is built to the highest standards.
During the period, the company also strengthened its management team. The company appointed Dr Arturo Weschler MD, the leading digital healthcare executive as the VP of innovation where he will be leading the OrionAI project of HeraMED.
OrionAI is a cloud-based machine learning SaaS platform of the company, being developed with the Mayo Clinic. This technology harnesses as well as uses the big data to analyze and evaluate thousands of records in real time. Thus, enabling unprecedented analysis accuracy and at the same time potentially detect any complications before it becomes a problem which could have a dramatic impact on the baby and the expecting mothers.
During the period, the company noted receipts from customers worth US$0.088 million. The expenditure during the quarter was US$0.776 million due to the scheduling of manufacturing costs and associated payment. Overall, the net cash used through the operating activities was around US$0.680 million. The company expects that in the next quarter, the estimated cash outflows will be around US$1.341 million. By the end of the Q1 FY2019 on 31 March 2019, the company had net cash and cash equivalent worth US$3.334 million.
The shares of HMD traded last on 24 April 2019 with the closing price of A$0.220. HeraMED holds a market capitalization of ~A$19.26 million and approximately 87.53 million outstanding shares.
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