VALERINA CHANGARATHIL
ADELAIDE medical software technology company Alcidion will “swing away” from heavy research and development and focus on sales and marketing following a positive cash flow quarter.
After an “excellent start” to the financial year with an increase of $147,000, its cash and cash equivalents balance now sits at $5.7 million.
About $600,000 was invested in research and development during the period to develop a predictive analytics and performance metrics platform for its Miya software.
The system guides clinical and allied health staff’s decision-making processes while they are treating patients, helping to avoid clinical errors.
A new commercialisation strategy revealed yesterday will help the early stage company achieve rapid revenue growth.
“There will continue to be a R&D effort to keep the platform current and to complete toolset capabilities ... but in general terms the company effort will swing away from heavy R&D investment into a heavy sales and marketing, and business development, effort,” chief executive Ray Blight said.
The former SA Health Commission chief set up Alcidion in 2000 with Adelaide University Medical School professor Malcolm Pradhan.
It will begin a trial project with Calvary Wakefield Hospital during the current quarter.
The group also received its first purchase order of more than $500,000 for a mobile task management solution for six Monash Health sites, a “pivotal” step in commercialising the software.
The company this week also secured a $1.45 million contract with Victorian company Western Health.
The initial three-year term is worth $1.45 million, with Western Health holding an option to extend the agreement for $450,000 a year for two years following.
It following a memorandum of understanding signed in 2016 to use Miya at four public hospital facilities in Melbourne’s western suburbs.
Alcidion is backed by Blue Sky Private Equity and Allure Capital, headed by current executive vice-president Nathan Buzza.
Shares in Alcidion rose almost 4 per cent to about 5.3c before closing steady at 5.1c.
ALC Price at posting:
5.3¢ Sentiment: Buy Disclosure: Held
