Interested in fellow Straw people's thoughts on ARTRYA (ASX: AYA)

Company and Product

ARTRYA describe themselves as an AI-Driven Healthcare Tech Company - with a cloud based software solution that provides cardiovascular clinicians the ability to detect and diagnose patients with chest pain at the 'point of care'.

Their flagship product, the Salix Coronary Anatomy (SCA), is a breakthrough technology that can detect vulnerable plaque biomarkers from a CCTA (Coronary CT Angiography) scan within minutes.

Stage of Life-cycle

ARTRYA is a cash burning, pre-revenue micro-cap approaching key inflexion points, including the high likelihood of a capital raising either pre or post a 510(k) FDA regulatory clearance.

The Company has lodged a 2nd Q-submission recently (Jun 7th) to the FDA with an expected meeting within weeks, to gain final feedback prior to submitting for 510(k) regulatory clearance of their SCA product. FDA clearance is then expected sometime 2nd half 2024.

Notwithstanding this high risk status, if the product truly has a competitive advantage - and is accepted and integrated into large US Healthcare groups, then the scaleable nature of the software platform into a well established, and huge market looks interesting.

Target Market

ARTRYA are targeting the large US CCTA market (third of global market) where there is established medicare rebates of US$900 per CCTA scan. With a market of currently 4.4m scans pa. and growing with an ageing population.

Competitors and USP

There appears to be competitors with similar product offerings -> leading examples include Cleerly Health and Heartflow, however their solutions take between 24 - 48 hours (currently) to return a diagnosis to the clinician, with patient follow-up required.

Therefore the competitive advantage / point of difference for ARTRYA is the ability to provide analysis within 10-15 min, allowing the clinician to offer fast 'point of care' diagnosis and subsequent efficient triaging of patients.

This benefits patients through more immediate and informed care recommendations, and healthcare providers with improved productivity leading to increased revenue and reduced operating costs.

Market Status

ARTRYA has signed strategic agreements with three different US Hospital Healthcare groups who are integrating ARTRYA's software solution into their CCTA scanning systems, that will ultimately lead to commercial agreements with these groups once FDA clearance is achieved.

There has also been a 1 year commercial agreement reached in Australia with The Cardiac Centre NSW, who treat ~25,000 patients per year for heart disease - But from ARTRYA's ASX announcement under the commercial terms - "In this instance the revenue impact of this agreement is not considered material in value given the agreements short duration and size of the practice".

Business Model / Strategy Questions?

With the signing of 3 x major US Healthcare providers - there is clearly a recognised functional advantage for ARTRYA's software. These providers combined perform 30k CCTA scans pa. (< 1.0% of market)

However some important business model and strategic questions remain:

• Is the fast turnaround (10-15 mins) a genuine and sustainable point of difference in the med-long term vs. other players?

• If ARTRYA could capture say 5% of the US market (~220 K scans pa.) -> how much of the US$900 per scan rebate would they collect (what is their revenue model and potential revenue)?

• With a SAAS model, what margins could be expected on the revenues (60% - 80%)?

Perhaps a Strawman CEO meeting contender?



References (other than ASX announcements)

https://stockhead.com.au/health/fda-submission-looms-as-artryas-ai-platform-aims-to-capture-the-huge-cardio-diseases-market/

https://www.cbinsights.com/compare/artrya-vs-heartflow

https://www.cbinsights.com/compare/artrya-vs-cleerly

Disc: Not held in RL or SM