Ventripoint Diagnostics Ltd. (VPT.V ) applies of AI to echocardiography. Ventripoint's VMS products are powered by its proprietary KBR technology, which provides accurate volumetric cardiac measurements equivalent to MRI. This affordable, gold-standard alternative allows cardiologists greater confidence in the management of their patients.
Coverage was initiated August 2021 with an update in May 2022.
News Releases
May 17 - Sponsorship of the 55th Meeting of the Association for European Paediatric and Congenital Cardiology: The AEPC is a network of specialists in the paediatric and congenital cardiology with over 1,000 paediatric cardiologists.
June 7 - Exhibiting at the American Society of Echocardiography:
June 29 - Single Ventricle Congenital Heart Disease Study Launches at Leading Academic Medical Center using Ventripoint's VMS+3.0 Whole-Heart Analysis System: Collaboration with Duke University School of Medicine in a new study that analyzes single ventricle cardiac function in children. This will be the first study to validate the VMS+3.0 in children with functional single ventricles. Funding is provided by the Trawick Pediatric Cardiology Research Fund.
Aug. 10 - Echocardiologists in Latin America Express Strong Interest in Ventripoint Whole Heart Analysis Products: Participated in the 11th Cardiovascular Imaging Conference (DIC) hosted by the Brazilian Society of Cardiology (SBC).
Ventripoint’s podium presentation, “A Rapid, Accurate and Reliable Technique to Analyze RV Function in Echocardiograms from Patients with Congenital Heart Defects (CHD)”, attracted 75 CHD clinicians.
The presentation drew strong interest from leading clinicians and institutions looking to adopt the system. The Company has engaged a representative in Brazil and he has initiated discussions with KOLs, distributors and regulatory consultants to establish a market entry plan and assess demand for VMS+ family of products.
The regulatory process in Brazil is estimated between 6 to 12 months to complete depending VMS+ classification.
Aug. 26 - Announces Sponsorship for the European Society of Cardiology Congress 2022: Exhibiting at the 70th European Society of Cardiology (ESC) Congress, which will be held in Barcelona, Spain from August 26-29, 2022.
The Congress website (http://esc2022-congress.org/) reports 40,000 participants from 170 countries will hear 5,000 medical presentations during the congress. For the first time, the ESC Conference will be held virtually and in person, providing access to the latest cardiology research and clinical updates from anywhere in the world.
Oct. 14 - Exhibiting at the 2022 British Society of Echocardiography: Dr. Gregory Skinner, one of Ventripoint’s clinical advisors will be giving a presentation on his experience using the VMS system. This will provide excellent exposure for the VMS system and its capabilities for cardiologists and clinicians.
This conference will further connect Ventripoint to the global echo community and demonstrate how the VMS+ is a reliable and effective cardiac diagnostic tool. Ventripoint’s local UK distributor, Cardiologic, will also be participating.
Oct. 27 - Provide Corporate Update and Announces New Investor Relations Initiatives:
1. New office and expanded manufacturing facility,
2. 15 investigator-funded clinical studies planned or ongoing,
3. 11 new clinical studies identified with leading cardiac centers,
4. 30-33 sales representatives by year end in USA, Europe and UK,
5. Full sales funnel with significant revenue projected for 4Q22,
6. COVID is having major impact on heart health worldwide.
The Company has relocated to 18 Hook Avenue, Suite 101 in the “junction” area of Toronto. The new facility is larger than the previous corporate offices and has been configured with a larger manufacturing area and loading/shipping bay. The current manufacturing capacity is 10 units per week capacity with room to grow to 20 units per week.
The Company has aggressively marketed its VMS+ products at 11 medical conferences so far this year and has committed to do 2 more events by the end of the year. While during the COVID pandemic the sales cycle lengthened to up to 24 months, the Company now expects the sales cycle to be 3-9 months.
The company has 4 purchase orders to fill at this time and has issued multiple quotes to hospitals in Europe, UK and USA. It remains to be seen how quickly these quotes generate purchase orders. The Company has a target of 40-45 systems in use by year end and currently has 29 units in operation.
Financial Status and Share Capitalization: The Company estimates it has 12 to 18 months of cash on hand and expects significant sales to begin in the 4Q22 and increase quarter over quarter.
Engaged Think Ink Marketing Data and Email Services LLC. to provide marketing services ($10K/Month).
Nov. 4 - To Sponsor the Annual Meeting of the British Congenital Cardiac Association
Nov. 17 - Appoints MediTek Lifesciences LLC as Distributor for California: MediTek distributes products specific to cardiology research and treatment centers throughout the State of California, USA. MediTek has multiple sales representatives with a combined experience of over 45 years in the cardiology sector within the Californian market and understand how the VMS+ meets doctors’ needs by providing reliable echocardiography measurements.
Nov. 30 - Signs on Arc Group Medical LLC as Distributor in Florida Region.
Dec. 14 - Provides a Corporate Update and Announces New Investor Relations Initiative:
1. Nine distributors appointed in USA to join UK and European distributors for a total of 11 distributors.
2. Sales team now has 33 sales and marketing representatives across the USA, Europe and UK,
3. 6 purchases year to date and 5 more by the end of January adding to the 29 deployed VMS+ units.
The Company continues to be actively working with General Electric HealthCare Corporation (GEHC) through their Edison Development Program to bring our cardiac analysis tools to their existing customer base.
Contracted Greg Granato who is based out of Naples, Florida for investor-relation services. Greg Granato will receive 500,000 options which vest quarterly with ascending exercise prices from $0.30-$0.70 cents.
Jan. 2 - Announces Dr. Alvira Macanovic as President and CEO: Dr. Alvira Macanovic as President and CEO of the Corporation effective January 1, 2023. Dr. George Adams will continue as Executive-Chairman of the Corporation.
Dr. Macanovic has had increasing responsibilities within the Corporation since her appointment as Manager of Regulatory Affairs & Quality Assurance in 2017. She has been instrumental in building the current cohesive teams for manufacturing, sales and marketing, development, quality assurance, and regulatory affairs as the Vice-President of Operations, as well as effectively engaging the cardiology community and driving strategic partnerships.
The Board of Directors has granted Dr. Macanovic 250,000 options at an exercise price of $.30 for 10 years.
Summary
Conferences
Ventripoint participated in multiple conference and demonstrated its VMS unit to the medical community.
1. Sponsorship of the 55th Meeting of the Association for European Paediatric and Congenital Cardiology (May 2022)
2. Exhibition at the American Society of Echocardiography (June 2022)
3. Cardiovascular Imaging Conference (DIC) hosted by the Brazilian Society of Cardiology (SBC); (Aug. 2022).
4. Attended the 2022 British Society of Echocardiography with a presentation from Dr. Gregory Skinner (Oct. 2022)
5. Presented at the 2022 Annual Scientific Meeting of the British Congenital Cardiac Association (BCCA) (Nov. 2022).
Clinical Studies
A Single Ventricle Congenital Heart Disease Study was launched in collaboration with Duke University School of Medicine. The objective is to analyzes single ventricle cardiac function in children. The first study to validate the VMS+3.0 in children with functional single ventricles (June 2022)
In October 2022, the company reported 15 investigator funded clinical studies (planned and ongoing).
Manufacturing
In October 2022, Ventripoint moved to a new office and expanded the size of their manufacturing facility enabling them to potentially increase their current manufacturing capacity from 10 units per week to 20 units per week.
Distribution
In October 2022, Ventripoint stated its objective to have 30-33 sales representatives by year end in USA, Europe and UK. By December 2022 this objective was achieved claiming 33 sales and marketing representatives (US, EU and UK).
Appointments
Dr. Alvira Macanovic was appointed as President and CEO of the Corporation effective January 1, 2023 replacing Dr. George Adams.. Dr. Macanovic was granted 250,000 options at an exercise price of $.30 for 10 years.
Financing
No financing took place in the last eight months.
Orders and Commitment
October 2022, an update reported: "The company has 4 purchase orders to fill at this time and has issued multiple quotes to hospitals in Europe, UK and USA. It remains to be seen how quickly these quotes generate purchase orders. The Company has a target of 40-45 systems in use by year end and currently has 29 units in operation."
In December 2022: "6 purchases year to date and 5 more by the end of January adding to the 29 deployed units."
Also stated: The Company continues to be actively working with General Electric HealthCare Corporation (GEHC) through their Edison Development Program to bring our cardiac analysis tools to their existing customer base.
Earnings
VPT.V is still a pre-revenue company which continues need to raise cash from equity financing. Overall, Net losses have been fairly stable in FY2022 to date but the cash balance is also declining accordingly.
In October 2022, Ventripoint reported: : "The Company estimates it has 12 to 18 months of cash on hand and expects significant sales to begin in the 4Q22 and increase quarter over quarter."
In short
Ventripoint Diagnostics (VPT.V) traded between $0.21 and $0.345 cents in the period. Despite a strong revenue model and a sizable addressable markets, Ventripoint has yet to deliver meaningful revenues in FY2022.
Ventripoint stated in October 2022 that "significant sales to begin in Q4 2022 and increase quarter over quarter" but in December 2022: "6 purchases year to date and 5 more by the end of January adding to the 29 deployed units.".
Incoming Q4 2022 earnings will certainly quantify the significance of those sales.
VPT.V met the objective of placing 25 units in FY 2021 but a total of only 29 units deployed in in FY2022 (+5) year to date. The initial target were revised from 75-100 units in FY2022 to 40-45 units. It's clear that this objective has not been met. However, VPT.V did meet the objective of 33 sales and marketing representatives (US, EU and UK).
Ventripoint also continue to report being involved with GE Healthcare, per MD&A (Q3 2022):
The Company will continue to collaborate with GE Healthcare to result in a fully validated product, which is developed by the Company in-house and validated by GE Healthcare. The Company will require additional staff to participate in the planning of the launch of the product by GE Healthcare and to prepare supporting documentation for regulatory submissions and marketing, as well as training and support for GE Healthcare’s salesforce.
The Company will also need additional application specialists to train and support GE Healthcare’s application specialists during sales and for aftersales support of customers. The Company is also looking for clinical sites to further validate the product in existing and new applications. Estimated costs through to Q3 2022 is $570,000 for operations and commercialization and $322,000 for product design and development
Again, this statement has been the same as previous MD&A. With Q3 2022 completed, will Q4 MD&A be different?
Otherwise, the upgrade of the VMS +3.0 to 4.0 is still ongoing. Per MD&A (Q3 2022):
Upgrade to VMS+4.0 will be focused on 4D (motion) analysis and enhanced tracking and user-friendly features to accelerate analysis and optimize visualization of all 4 chambers of the heart. The new design will also significantly lower the cost of manufacturing the product. This design and development will be done by Ventripoint in-house
It is estimated that the completion of the development of the VMS+4.0 and validation, regulatory market approvals and transfer to production will occur within the next 12 months. Regulatory market approvals will be done by the Company in-house. Current facility is scaled to manufacture at least 3units/week with a full-time assembler and quality control personnel. Estimated costs through to Q4 2022 is $1,710,000 for Operations and commercialization and $966,000 for product design and development.
Again, this statement has been the same as previous MD&A. With Q4 2022 completed, what will Q1 2023 bring?
Based on YTD 2022 revenue, it's evident that adoption of the VMS +3.0 continues to be a challenge. What's different this year is that Ventripoint has increased its exposure with the target market by attending conference and providing demonstrations of the product along with ramping up its sales representative and distributors.
Now that the awareness factor is improved, it should be less of an issue in driving adoption with the target market and it will become evident if demand for the product is truly there or if they are able to create it.
While the warrants strike price to date is relatively distant from current valuation, the market will be monitoring to see if these terms get amended which will in itself be telling in the outlook on valuation and commercial progression.
In October 2022, Ventripoint stated to have enough capital for the next 12 months. However, the clock is running with $6M in cash and roughly eight months of runway, Ventripoint will eventually need to deliver on sales.
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