Q&A: Artrya MD John Barrington on next month's listing and commercialising AI health tech

Artificial intelligence medical technology company Artrya is gearing up to list on the ASX next month, aiming to raise $40 million via an IPO at $1.35 per share.

The start-up has already received considerable private and government support – securing $19 million over the last two years to develop, test and commercialise its Salix software which detects and assesses the presence of vulnerable plaque in patient’s arteries.

Speaking with Stockhead, Artrya co-founder and managing director John Barrington said the company’s non-invasive tech addressed a need in coronary heart disease diagnosis globally.

How does the Salix technology work?

“We are using artificial intelligence to detect coronary artery disease from CT scans,” Barrington said.

“Coronary artery disease afflicts about 126 million people worldwide and every year, 9 million people die of coronary artery disease.

“The methods of detection haven’t changed over several decades and the rates of death have not declined because one of the major causes of coronary death is very difficult to see with the naked eye, and therefore it is not reported.

“It’s called vulnerable plaque because it’s vulnerable to break off and rupture in the coronary arteries.

“The artificial intelligence algorithms are looking at pixels from the CT scan image, and within 15 minutes, we can report vulnerable plaque and the other biomarkers that provide insights into a patient’s heart health.”

Artrya market opportunity — Pic: Every year, more than 1.5 million invasive coronary procedures are performed in the US. In North America and Europe, cardiac CT procedures are forecast to rise 76% from 11.1 million to 19.5 million between 2021 and 2025.

What’s the market opportunity for the company in the health sector?

“The opportunity is global, and while we’re starting in Australia, the United States represents about 34% of the global market and we already have people working on the ground in the States,” Barrington said.

“Being a medical product, we need regulatory approvals.

“We have approval in Australia already for Salix – it was admitted to the Australian register of Therapeutic Goods in November 2020.

“We will be marketing the product to radiology, and cardiology practices and hospitals globally and have submitted our FDA application and Health Canada application.

“This month we will submit the European CE mark regulatory approval and the UK conformity assessment approval.

“The technology is already in pilot in two sites in Australia, we’ve got another two pilots starting this year, and then we will be putting it into other pilot sites in the beginning of 2022 and then opening it up for wider release early in 2022.”

What would you say sets the company apart from your peers?

“We have the early mover advantage with what we’re doing,” Barrington said.

“It is a working product; it is using the advanced technology to solve a global health problem that has not been solved over decades.

“There is a massive need for it. Heart disease generally is the largest cause of death in the world, so we’re addressing a societal problem with world leading technology that is rapidly implementable.

“There’s no software required in the radiology practice or hardware – it’s all cloud-based – so it’s easily implemented, and it requires very little training.

“It also reduces cost at a national healthcare system level, at a practice level, and reduces costs and improves health outcomes for patients.

“There’s a real need there, there’s a technological solution that’s readily implementable, and it’s now working in the market.

“So, whether we look at it from a societal perspective, or an economic shareholder value perspective, there is a significant opportunity with Artrya.”