Risks

·      No Revenue, very recent IPO with very little business history (Artrya founded in 2018)

·      Competitive industry -Artrya could face competitors able to spend more on R&D and marketing etc.

·      Healthcare industry is highly regulated

Easy pass for us, until can prove it can earn revenue and scale.

Key Strengths

·      Global Problem - heart disease is the world’s biggest killer, responsible for one in three deaths globally. With population growth and ageing, the burden on the total healthcare system and the consequent need for medical imaging services to detect coronary artery disease is forecast to continue rising.

·      Growing Market - Demand is being driven by global population growth and ageing societies.

·      Scalable Business Model - Salix products are delivered through a SaaS business model. Being cloud-based, Salix solutions are securely accessible 24 hours a day, seven days per week wherever internet services are available. The software is available on a subscription basis, requires no hardware installation and is highly scalable, delivering a high gross margin business model.

·      Two Founders continue to Lead business with John Barrington as CEO and John Konstantopoulos as Executive director of Product. Both have skin in the game John Barrington as 7,526,095 shares (9.62% shares on issue) and John Konstantopoulos 7,000,000 shares (8.95 shares on issue)

Artrya is a medical technology company specialising in assessing cardiac images. A recent small cap IPO (~100m Market Cap) Artrya is Software as a Service company with its main product Salix. Founded by executives John Barrington and John Konstantopoulos in January 2018.

The Salix product suite uses Artificial Intelligence to detect and assess the superior predictor of heart attack, Vulnerable Plaque. Vulnerable Plaque is a strong indicator for future heart attacks, these plaques comprise varying degrees of fat and calcium that are attached to the wall of coronary artery. Vulnerable Plaque can lead to a blood clot formation in the coronary artery and can cause sudden blockages and heart attack. According to prospectus Vulnerable Plaque is generally not reported as it is difficult and time- consuming to identify with the naked eye. Invasive Coronary Angiograms are expensive, require hospitalisation for the invasive procedure and are medically risky.

Quick heads up for those interested the following is an extract from an interesting company that listed Friday.

Disruptive technology Artrya has positioned Salix to disrupt the global market for CCTA scans and ICA procedures.

An estimated 20 million cardiac CT scans are expected to be performed in both North America and Europe alone by 2025.

By addressing current limitations in diagnostic reporting for CAD, Salix has a valuable first-mover advantage that will aid market adoption

Patients have better outcomes because Salix detects an important cause of heart attack:

Vulnerable Plaque. Diagnosis is faster, costs are lower, and there is less risk of complications by avoiding unnecessary ICA procedures.

Healthcare providers benefit because Salix integrates with existing systems, optimises practice workflows and requires no upfront capital expenditure. Diagnostic imaging practices and specialist cardiology teams can use Salix to grow their revenue by treating more patients.

Health systems benefit because Salix uses AI to provide faster reporting of CAD with less human intervention.

Salix’s personalised 3D model and automatically generated report are delivered within minutes.

By reducing treatment costs per patient, Salix aids public health systems and health insurers.

Poised for commercialisation In November 2020, SCA was included in the Australian Register of Therapeutic Goods (ARTG) as a Class 1 medical device under ID 347719. Artrya has commenced commercial pilots of SCA with Australian customers and is pursuing expansion opportunities in the United States (US), Canada and the UK.

Artrya expects first revenue from its SCA product in 2022. Artrya has a SaaS business model.

This model will help Artrya penetrate the global CCTA and ICA markets because healthcare providers pay no upfront costs to use Salix.

Typically, SaaS models have “pay-as-you-go” or subscription pricing. Artrya believes the SaaS model could deliver annuity revenue and profitable margins for the Company.