ScoPo’s Powerplay – ImpediMed has clear US growth focus...

ScoPo’s Powerplay – ImpediMed has clear US growth focus

Brisbane-based medical software technology company ImpediMed (ASX:IPD) is Power’s stock of the week, despite posting a net loss of $9.7m, above Morgans’ forecast of $9m in H1 FY24.

Half year revenue of $4.8 million, compared with $5.7 million in pcp was put down to an end of IPD’s AstraZeneca clinical trial program.

Operating expenses were flat YoY at $17.1m, and up 9% from the preceding half due to costs related to previous CEO and CFO stepping down.

EBITDA loss was $9.3m down 6% on the pcp. Operating cash outflow was $6.8m with a cash balance as at December 31, 2023 of $36.9m.

SOZO SaaS revenue was up 23.1% to $4.3m with a total of 557 SOZO units in the field, up from 500 units at June 30, 2023.

IPD’s device, the SOZO, is the only FDA cleared and clinically validate BIS system for the early prevention of lymphedema.

BIS for prevention of breast cancer-related lymphoedema is now included in the globally referenced NCCN Guidelines and MASCC Guidelines.

SOZO is available in the US, Australia, New Zealand, Hong Kong, UK, Ireland, Denmark and Sweden.

During H1 FY24 UnitedHealthcare, the largest Private Payor in the US updated coverage policy to allow reimbursement claims for relevant CPT code without clinical review.

The company says 14 states in the US reached critical mass (80% population covered for reimbursement from private payors or Medicare). No states had achieved critical mass in pcp.

IPD has identified 11 high-priority states for commercialisation based on factors such as potential patient population, medical leadership in lymphoedema prevention, and payor coverage, with seven of these already reached critical mass.

All 11 high-priority states are expected to attain critical mass by April 2024.

During the half Dr Parmjot Bains was appointed as managing director and interim CEO, while McGregor Grant was appointed as executive chair and interim CFO.

“Under new management ImpediMed will have a clear focus on building the instal base (sales) and cost control which investors will reward,” Power says.

Morgans maintains a speculative buy rating on IPD with 12-month target price of 20.4 cents.