- With growing cases of chronic ailments, increasing elderly population, and the rising demand for complex surgical procedures, the medical technology industry is anticipated to witness a sharp growth in the future.
- Camberwell, Victoria-based MedAdvisor announced a strategic partnership with HMS, a prominent provider of payment accuracy and population health management solutions.
- PainChek Ltd, in June, submitted for regulatory clearance under the Canadian regulatory ‘SaMD’ for its medical app for adults.
- eHealth SaaS player Respiri partners with the University of Edinburgh in a new data research centre to enhance the quality of life of patients having respiratory ailments.
Medical technologies are useful to save, assist, as well as improve lives around the world every day. The MedTech industry is developing at a fast pace across Australia and the world. Medical technology encompasses a range of products, including medical devices, dental apparatus, and imaging equipment. The advancements in the MedTech industry have enhanced the method of diagnosis and treatment of patients and lead to a better quality of life.
The medical technology market is predicted to grow sharply across the globe in the future. Growing cases of chronic ailments, increasing elderly population, and the rising demand for complex surgical procedures, are projected to lift the global medical device market in the upcoming years.
HAVE YOU READ: Is Australia Poised to Become a Leading MedTech Player?
The medical device industry invests a higher percentage of annual revenues into product innovation, research & development, and enhancement of existing technologies.
In Australia, several business types form the medical technology industry including medical technology exporter, medical technology importer as a subsidiary of any multinational company, third-party independent importer of medical technology, manufacturer and supplier of medical technology and R&D.
In this backdrop, we will familiarise you with three ASX-listed medical technology stocks- MDR, PCK, RSH
ASX-listed MedTech player MedAdvisor is a medication management platform empowering the users to manage their medication more simply as well as to improve adherence. The automated and intuitive software system of MedAdvisor connects users to devices as well as education materials from their preferred pharmacy. In Australia, the Company has connected more than one million users through 60% of pharmacies and a network of thousands of GPs.
MedAdvisor Revealed Strategic Alliance Agreement with US-based HMS
On 1 July 2020, MedAdvisor disclosed a strategic partnership with HMS (NASDAQ:HMSY), a prominent provider of payment accuracy and population health management solutions.
HMS is a shareholder of MedAdvisor and works with nearly 350 US health insurance companies and more than 40 government bodies that pay medical bills on behalf of patients in the US to connect patients as well as to improve medication adherence and overall health outcomes.
The strategic alliance with HMS unlocks a new market segment of insurers and payors in the United States for MedAdvisor and support joint activities across Australia.
With this deal, the Company anticipates generating revenue for each secure digital message sent on behalf of HMS’ clients. The secure digital product is anticipated to go live in the second quarter of the fiscal year 2021.
Moreover, MDR projects that there is a robust market appetite for this service and with time could represent a significant portion of the existing outreach volume.
With all the standards of termination as well as commercial confidentiality provisions, the deal has been signed for three years. Moreover, all commercial arrangements will be regulated by this agreement, and under discrete Statements of Work, the commercial terms will be negotiated separately.
Mr Robert Read, CEO MedAdvisor commented-
Stock Performance: On 15 July 2020, MDR stock was trading at A$0.505 (at 3:37 PM AEST), up 2.02% from its previous close. The market capitalisation of MDR stood at A$122.13 million, with nearly 246.72 million shares on ASX. The stock has delivered impressive returns of 28.57% and 19.28% in the last six and three months, respectively.
PainChek Ltd (ASX:PCK)
An Australian based company PainChek Ltd is engaged in the development of pain assessment technologies. PainChek® is a smartphone-based medical device using AI to assess and score levels of pain in real-time and update medical records in the cloud. On 12 June 2020, it was announced that PainChek had been added to the All Ordinaries index on the ASX (Effective 22 June).
PainChek® is the world’s first pain assessment tool having regulatory approvals in Australia and Europe and is being rolled out globally in two phases-
- Phase 1- PainChek® for adults who are not able to verbalise their pain, such as individuals with dementia.
- Phase 2- PainChek® for children who have not yet learnt to speak.
PainChek applies for Canadian regulatory clearance and market entry
Australian company PainChek Ltd continues positive development towards expanding global regulatory clearances and market presence for its PainChek medical application for adults.
On 10 June 2020, the Company disclosed that it has submitted for regulatory clearance with Canada Health under the Canadian regulatory ‘SaMD’ category (Software as a Medical Device). PainChek Ltd has applied for a Class 1 medical device approval based on PainChek App risk classification and in line with the existing CE Mark and Therapeutic Good Administration (TGA) clearances.
After obtaining Canadian regulatory approval, the Company will build its global market entry strategy with its existing presence in the United Kingdom, Australia, Singapore, and New Zealand. Moreover, this will also provide a geographical base for the early entry of PainChek into the North American market before its projected FDA clearance in the United States.
Stock Information- On 15 July 2020, PCK stock was trading at A$0.115 (at 3:37 PM AEST), up 15% from its previous close. With a market cap of approximately A$103.55 million, the stock has ~1.04 billion shares outstanding.
Respiri Limited (ASX:RSH)
Melbourne-based, e-Health SaaS company Respiri Limited is supporting respiratory health management. The Company’s world-first technology identifies wheeze, a classic symptom of asthma, COPD, and respiratory disease to give an objective measure of airway limitation.
Respiri is working with the mission of improving the quality of life for hundreds of millions of adults and children worldwide.
Respiri completed an agreement to partner with the University of Edinburgh
On 26 June 2020, Respiri disclosed that the Company had completed a deal to partner with the University of Edinburgh in a new data research centre for improving the lives of individuals having respiratory conditions.
Health Data Research Hub for Respiratory Health called BREATHE that is led by the University of Edinburgh. Headed by Health Data Research UK, BREATHE is one of the seven new hubs and is part of a 4-year £37 million investment from the Government ISCF (Industrial Strategy Challenge Fund) conducted by UK Research and Innovation.
Respiri will work with BREATHE for increasing its patient experience program to the United Kingdom, as the Company plans to enter the European market in 2021, after its Australian commercial launch in the fourth quarter calendar year 2020.
Mr Marjan Mikel, Respiri CEO and Managing Director, said on this partnership:
Stock information: RSH securities were placed in a trading halt pending the release of an announcement. On 14 July 2020, RSH stock settled at A$0.110, in-line with its last close. With a market cap of A$71.69 million, the Company had nearly 651.71 million shares trading on ASX.