Medtech innovator, G Medical Innovations (ASX: GMV), have experienced a significant boost in market confidence, following the news that the company has experienced 105% growth in their remote patient monitoring service in the US since January this year. The news saw GMV shares close at a striking 33.3% higher yesterday.
The impressive year-on-year growth (CY2018-19) translates to almost 24,000 new patients in 2019 to an approximate collective 41,000 patients for the company. Additionally, the company has been asked to roll out more of their independent diagnostic testing facility services (IDTF) to their existing client, an Ohio hospital-chain, expecting to further increase their user base by 5000 patients.
Executive Director and G Medical CEO, Dr Yacov Geva commented on the growth “The Company is witnessing tremendous momentum build across the US, which is a key market for GMV. We look forward to continuing this growth well across 2020 and unlocking the considerable revenue that will accompany uptake.”
The company also reported they are in negotiations with a large Texas organisation and are in the process of adding four sales representatives to their team. Dr Geva said “G Medical has a number of opportunities pending, as with the financial flexibility to increase our sales representatives, we remain well positioned to capitalise.”
Founded in 2014, the company are innovators of mobile and e-health technology solutions, currently offering services for both professional and consumer use. The ‘Prizma” smart-phone case has in-built technology which can accurately obtain the patient’s heart-rate, blood oxygen saturation levels, body temperature, stress levels, and even ECG features. The platform also allows the user to manually enter blood glucose levels and blood pressure measurements which can then be sent to family members or medical professionals.
Their second product, directed more at medical professionals and carers, is the product used by their hospital clients. The ‘Vital Signs Monitoring System’ (VSMS/GMP) does what its name suggests, involving four sensors which accurately measure and monitor heart rate, blood pressure, heart rate and ECG’s, body position and the location of the patient. The technology claims to reduce the physical requirements of staff, reduces the chance of human error, and promoted patient freedom.
It would appear G Medical are situated in a growing industry, a 2019 report by EY reported that global collective revenues in the medtech industry grew 7% to US$407.2b in 2018 and noted public valuations have increased 38% from 1 January 2018 to 30 June 2019. Additionally, G Medical report that their tech can be used in aged-care and assisted-living facilities, which does not appear to be a diminishing market with the percentage of the world’s population above 65 years old expected to grow from 617 million (8.5%) to 1.6 billion (16.7%) in 2050 (United States Census Bureau, 2015).
Shares in the company have since pulled back by 16.67% from yesterday’s close price.