Notes and Key Points from Today’s Webinar (ECHO IQ)
These are some notes and observations from today’s webinar. I had just completed a double shift, including nights, so I was quite tired during the session.
The webinar was hosted by CEO Dustin Haines and Nick Lubbers (US President and General Manager). As expected, it was very positive from the outset, with Dustin speaking first.
Dustin mentioned that he and Nick had recently been in Australia and Hong Kong, where they met with over 70 groups to discuss what Echo can offer. However, he did not specify which groups.
He also stated that Echo is now considered a thought leader in this space and that they are looking to partner with governments, with ongoing discussions underway—though again, no specific details were provided.
Dustin addressed the “elephant in the room,” being the pending FDA approval. To quote him: “We are as confident now as the day it was submitted.”
He added that Echo has been in ongoing discussions with the FDA, providing additional information and clarity to questions, and that these conversations are progressing well.
He also noted that the FDA is currently undergoing management and leadership changes. While he did not see this as an issue, he suggested it could be contributing to slower approvals and potentially delaying the 510(k) process. His final comment on the matter was: “We have submitted a really strong application.”
A slide indicated that Echo is currently burning approximately $2.5 million per quarter.
- No debt
- $11.4 million in cash available
Dustin also mentioned they are expecting a $1 million rebate from Australia, anticipated in Q2. He spoke positively about Australia overall.
He commented that although the share price has already run, he still believes it is significantly undervalued. Dustin and Nick alternated throughout this section, sharing speaking time.
There was a comment that echocardiograms are the gateway to most heart-related issues. Dustin also spoke about the growing importance of ECG wearables, suggesting they will become increasingly significant—he almost sounded like he was hinting at something more.
Total Addressable Market (TAM)
- Combined TAM: $3.89 billion
- Heart Failure (HF): $2.99 billion
- Aortic Stenosis (AS): $900 million
At this point, it was reaffirmed that Echo considers itself a market leader, providing cardiologists with real-time information.
Integration was highlighted as a key differentiator. Dustin spoke confidently, saying that when they approach hospitals, they consistently encounter integration challenges with existing systems. He believes Echo’s solution integrates seamlessly with no disruption.
He also mentioned that both he and Nick sometimes act as “big hitters” within the sales team to help close deals.
Dustin added that Echo is increasingly becoming a “think tank” in the space, with a seat at the table in major heart-related discussions.
He and Nick noted they had recently been in the US Midwest closing deals and presented a slide indicating a footprint across multiple regions. In fairness, it appears they have a presence across much of the US.
Dustin also stated that the Mayo Clinic has signed a three-year commercial agreement, even with FDA approval still pending—though no additional details were provided.
They then spoke about a number of deals already signed and suggested that the rollout will be substantial.
Q&A Highlights
- Heart failure reimbursement codes:
- They believe the current code will remain valid and mentioned they are working with the US Department of Health.
- Additional opportunities:
- Dustin revisited a point from the recent Strawman meeting about chemotherapy potentially placing strain on the heart, again highlighting potential opportunities in that area.
- Broker coverage:
- Dustin stated there are currently three brokers covering the stock—Ord Minnett, Morgans, and Candor (from memory). He said he rates their reports and encouraged people to review them.
- Future / takeover potential:
- In response to a question about whether Echo could be acquired, Dustin stated his primary role is to drive the company forward and create shareholder value. He acknowledged that a takeover is possible but delivered this in a somewhat playful tone, adding that there may also be opportunities for Echo itself to acquire other companies.
The webinar will be uploaded to the Echo website.
Apologies for any rambling—I was quite tired and am not especially comfortable writing for others.
As always, DYOR.
Disclosure: I hold SM, which is currently my largest position IRL.