Cardiex Limited (ASX: CDX), a healthcare company engaged into the development and marketing of the SphygmoCor device used for cardiovascular patient assessment and management, announced the extension and expansion of a previous contract awarded to its subsidiary company AtCor Medical (“AtCor”). The agreement was signed between AtCor Medical and Bayer AG (an international pharmaceutical company) for Phase 2a multinational clinical study for patients with congestive heart failure.
As per the original contract, Atcor was supposed to supply its patented SphygmoCor® cardiovascular monitoring system as well as its data management services for trial across Europe. The expansion of the supply-contract is the outcome of the growth in the number of SphygmoCor® systems being used. The supply contract extension has also driven by an increased requirement of data management services.
There is a possibility that the extension and expansion of the existing contract might have trials extended beyond initially planned 18-14 months. Further, the clinical study will be conducted within ten countries across Europe. There will also be a requirement of supply of systems and services by including 20 new trials sites. With this new addition of 20 sites, there will be a total of 70 new trial sites. The phase 2a trial is expected to bring new opportunities for CardieX in the near further. On the other hand, it will be a major study for Bayer AG.
It may be exciting for the investors to know that the SphygmoCor® systems of Atcor are being used in 20 best hospitals in the US in 2017-2018 Honor Roll. The SphygmoCor® systems are also being leveraged by various leading pharmaceutical companies around the world who utilized it to examine the heart-vascular interactions by the usage of novel drugs.
It may be surprising to know that in the US more than 5.7 billion people suffer from heart failure whose cost amounts to US$30,000 billion annually to the US. Through this contract expansion in association with Bayer AG, CardieX’ ability to meet the requirements of multinational healthcare and pharma companies comes into picture where it gets highlighted as a market leader in SphygmoCor® technology.
In the last year, the shares of CDX has given a positive return of 91.02%. However, in the previous 5 days the stock has given a negative return of 13.33% which could possibly due to the weak half-yearly results for the period ended 31 December 2018. The period reported growth in its revenue by 2.22% to $2,007,925. However, the net loss further declined by 44% to $1,410,44. The increase in the net loss was driven by increased expenses related to expansion and diversification into these new projects as well as the new product development initiatives.
Although the half-yearly results were not satisfactory, the expansion and extension of the contract was followed by the interest received by various international pharmaceutical companies like Bayer AG for its SphygmoCor® systems, there is a scope that the company will soon have a global presence and give a better return in the near future.
On 4 February 2019, the company announced that the study on SphygmoCor technology was successful in monitoring the central blood pressure with an improved cardiovascular event. The results were better than the standard peripheral pressure.
On 15 January 2019, CDX announced that its subsidiary had executed a Marketing agreement with the leading telehealth service providers in the US, inHealth Medical Services Inc and Anthem Inc, the largest insurance company in the US.
By the end of the trading day on 6 March’19, the closing price of the stock was A$0.052, down by 5.455% as compared to previous trading day’s closing price. Today, 7 March’19, the stock is trading 1.92% down at A$0.051 (As at 2:05 PM AEST). Cardiex Limited has a market capitalization of A$32.82 million with approximately 631.15 million outstanding shares.
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