HeraMed Limited (ASX: HMD) is a medical technology company that develops and sells pregnancy monitoring solutions in Australia, Europe, and Israel. On April 16th, 2019, the company announced to have entered into a partnership with Australian creative agency, Meerkats to advance the business to consumer (B2C) launch of HeraMED’s medical grade foetal heart rate monitor, HeraBEAT in Australia.
Meerkats is a leading Australian creative agency engaged in assisting organisations to grow through creativity and innovation for over 15 years. It has a vast national footprint whereby Meerkats services several top tier companies including St John Ambulance and iiNet amongst others.
Under the agreement, Meerkats will provide strategic consulting services with respect to HeraMED’s branding, digital marketing, media strategy and social media initiatives in Australia. The companies will together formulate and execute an extensive digital marketing campaign, expected to be launched in May 2019 as informed.
The collaboration was implemented following an extensive due diligence process undertaken by Meerkats into the HeraBEAT device and the existing Australian market. As a result, Meerkats signed up to undertake the project through its ‘Meerkats Ventures’ approach, whereby the agency will be remunerated via a small percentage of each device sold.
Essentially, Meerkats would be receiving a pre-negotiated commission from HeraMED’s exclusive Australian distributor Dale Group International for every device sold in Australia. According to HeraMED, this development would considerably validate the HeraBEAT device and the remuneration structure would largely incentivise Meerkats to drive the product uptake throughout the region.
As part of the agreement, the Company has also received its first purchase order of 250 devices units from the Dale Group International, marking the inaugural order in HeraMED’s binding, exclusive distribution agreement with Dale Group International. The agreement stipulates the distributor to generate a minimum of 9,000 units resulting in revenue of ~ $ 1.9 million over a period of three years.
Recently, on April 11th, 2019, HeraMED announced that it had launched HeraBEAT via a specially designed B2C website in the United Kingdom (UK), which represents the largest addressable market that HeraMED has had exposure to so far, as the UK boasts ~770,000 births per annum. The footing in the UK will provide strong grounds for growth across Europe.
HeraMED is actively working to commercialise HeraBEAT, the smart innovative medical-grade ultrasound monitoring device. For this purpose, the device has undergone multiple clinical trials and thus secured approvals from important regulatory bodies including CE (Europe), TGA (Australia) and AMAR (Israel) to begin the sales.
The Company has also partnered with two leading medical organisations, the Mayo Clinic and TEVA Pharmaceutical Industries Inc.
HeraMED believes that it has built and refined a cost-effective marketing and branding strategy, that can be replicated in other countries with minimal adjustments. Meanwhile, the company is diversifying its product range and services with the launch of SaaS services and cloud-based monitoring systems.
The company has around 87.53 million outstanding shares with a market valuation of AUD 19.26 million. On April 16th, 2019, the HMD stock closed the market session at AUD 0.220 with ~ 137,385 shares traded.