CardieX makes tilt for US$509 billion digital health market with major manufacturing deal
Health & Biotech
Health & Biotech
Special Report: CardieX has inked one of its most significant deals to date, securing a partnership with one of China’s largest electronic medical device manufacturers and opening the doors to a US$509 billion market opportunity.
CardieX (ASX:CDX), the Australian cardiovascular monitoring medtech, signed a three-year deal between its subsidiary ATCOR and China’s Andon to co-develop and commercialise a range of home-use and remote patient monitoring devices.
The first of these devices, dubbed ‘ATCOR Pulse’, will include the world’s first cloud-connected home-use BP monitor to include ATCOR’s patented SphygmoCor technology, the global standard for non-invasive measurement of arterial stiffness. It will also be the first to include Arty, ATCOR’s new cardiovascular vital signs and telehealth platform.
Pulse represents the first new medical device developed by ATCOR since 2012, and it’s easy to see why CardieX has decided now is the right time to release new kit. With the advent of COVID-19, it’s not surprising that patients fortunate enough to be able to be cared for from home will choose this option.
With the new devices, CardieX has cottoned on to a market opportunity in digital health, which will be worth US$509 billion by 2025. The home consumer health devices market alone is estimated to be worth US$2.5 billion annually. That opportunity grows even larger when taking in the remote patient monitoring market, adding another estimated US$43 billion by 2027.
The company plans to target the US, Europe, Australia and Chinese markets with a launch expected by Q42021. CardieX also wants to target multiple new channels and markets with ATCOR Pulse, including hypertension and cardiovascular, the world’s #1 killers with 18 million deaths annually, as well as vascular dementia and Alzheimers. ATCOR Pulse will serve as the anchor device for CardieX’s home health-tech strategy as it looks to crack into these new markets. All of the devices manufactured under the agreement with Andon will form the Pulse ecosystem catering to these markets – all of which connect to the Arty ecosystem.
CardieX CEO and managing director Craig Cooper said the Andon partnership was the most significant announcement in the company’s history since he became CEO in 2017.
“We now have the foundations of a fully developed ecosystem of home-health devices, digital health & telehealth solutions, wearable partnerships, and a remote patient monitoring platform – each of which target significant health-tech market opportunities – and each based on our patented SphygmoCor technology,” said Cooper.
“Going forward we will continue to expand our product portfolio with new devices including new partnerships in medical and clinician based vital signs monitoring, wearables, and other health technologies”.
As part of the agreement, Andon will be responsible for obtaining regulatory approvals in all target markets. Andon will also purchase ATCOR’s SphygmoCor chips, while ATCOR will retain sole and exclusive owner of IP rights to central blood pressure monitoring and will have sole distribution rights in all territories.
This article was developed in collaboration with CardieX, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.