EMvision Research Notes, page-2672

ChatGPT Summary

Company Overview:
EMVision is a company focused on reducing the societal and economic burden of strokes and other neurological disorders through portable brain scanners.

Products:

• Emu: A bedside brain scanner designed for hospital use, especially in ICUs and stroke wards.
• Backpack-sized scanner: A portable, first-responder device intended for use in ambulances (road and air) for pre-hospital stroke diagnosis.

Technology:

• Uses ultra-high frequency radio signals, a new modality, distinct from CT or MRI scans.
• Provides real-time detection and classification of strokes, identifying whether it's hemorrhage (bleed) or ischemia (blockage).
• Localizes the stroke to a specific quadrant of the brain and provides a visual image.
• Portable, fast, and cost-effective, with no ionizing radiation, making it easy to use even by nurses in around 5.5 minutes.

Market Application:

• Emu is suitable for hospitals, particularly in stroke wards, ICUs, and rural/regional clinics with limited access to CT scanners.
• The first-responder device is targeted at road and air ambulances, improving triage and treatment for stroke patients before reaching the hospital.
• Potential market size includes 10,000 units in U.S. hospitals and 60,000 units for U.S. ambulances.

Pricing:

• The Emu device is priced at $150,000 USD.
• Consumables are priced at $25 per patient scan, with an annual maintenance cost of $15,000.
• The backpack-sized scanner will be cheaper but the final price is yet to be determined.

Production:

• EMVision has a pilot production line in Sydney, currently capable of producing up to three Emu devices per week.
• Plans to expand production capacity as demand grows.
• Intends to keep manufacturing in Sydney due to quality control and product development advantages.

Funding and Financials:

• The company has a cash position of $18.6 million (as of June 30, 2024).
• Burn rate is $2 million to $2.5 million per quarter.
• Keysight Technologies, a major collaborator and supplier, invested $15 million and holds an 8.7% stake in EMVision.
• Keysight supplies the Vector Network Analyser (VNA), a critical component of the scanners.

Timeline:

• Targeting market entry for the Emu device in 12 months (late 2025).
• The first-responder backpack device will follow closely behind, with road and air studies planned for late 2024 into early 2025.

Distribution:

• EMVision is exploring distributor partnerships in North America.
• May consider a leasing model for certain markets, bundling devices, training, and consumables.
• EMVision aims to retain its brand identity while leveraging distributors’ sales networks.

Profit Margins:

• The goal is 50-60% margin for capital equipment after distribution costs.
• Consumables are expected to yield a 75% margin.
• Potential use of subscription models in some markets, offering bundled pricing for devices, training, and consumables.

Competitors:

• No direct competitors offering similar portable stroke-diagnosis technologies.
• Other companies are working on making smaller CT or MRI machines, but none are as portable as EMVision’s devices.

Technology Origin:

• The technology originated from research at the University of Queensland.
• EMVision acquired the intellectual property (IP) and has expanded the patent portfolio to 14 patent families, covering hardware, software, and signal processing methods.
• The University of Queensland receives a 3.5% royalty on net sales.

Partnerships:

• The company collaborates with the Australian Stroke Alliance and the Royal Flying Doctor Service, working to test lightweight imaging solutions for pre-hospital stroke care.

Future Plans:

• Continue building partnerships and expanding production to meet expected demand.
• Continue R&D to further enhance and scale its products, potentially introducing subscription and leasing models in markets like the UK and U.S.