CardieX rounds off June quarter with strong sales, $3.67 million cash balance

CardieX Ltd has capped off the 2021 financial year with more than $3 million in the bank following a quarter characterised by a major corporate restructure, strategic collaborations and robust sales growth. The healthtech stock detailed its June quarterly activities in a market announcement on Monday, with commentary on the highlights provided by managing director and CEO Craig Cooper. Looking ahead, CardieX is preparing to present its work at a series of medicine and technology conferences in late 2021 and early 2022. The company is also gearing up to launch a blood pressure monitor and wearable health device in the new financial year, once it secures Food and Drug Administration (FDA) clearance. Financials CardieX capped off the June quarter with robust sales, leading the annual year-to-date sales figures to rise 32% on a constant currency basis against the comparative FY20 result. The jump in sales marks a historical five-year high in revenue growth for the healthtech company’s ATCOR division — a result CardieX expects to continue into FY22 and beyond. MD and CEO Craig Cooper spoke to the financial results in a market statement. “Based on the strong growth we are seeing in all market segments and with the addition of new devices, our internal sales target for FY22 remains for a significant increase over our results for FY21, which we anticipate will result in a return to profitability for our ATCOR division by 2022 calendar year-end.” The company ended FY21 with $3.67 million in the bank — a reserve that should be bolstered in November when a series of listed and unlisted options expire. CardieX could add a further $8.16 million to its bank balance if the options are fully exercised. June quarter highlights Activities-wise, CardieX spent the last three months of FY21 completing a major corporate restructure and advancing a series of core partnerships and collaborations. CardieX’s ATCOR subsidiary secured a patent from the United States Patent and Trademark Office for blood pressure measurement during the June quarter. The new patent is linked to CardieX’s intellectual property surrounding its SphygmoCor® technology and adds to 13 existing patents relating to the measurement of cardiovascular health parameters using traditional brachial cuff devices and sensor-based wearable technologies. The SphygmoCor® device was selected for a clinical trial at Yale University late in the June quarter. Another key achievement was reached when CardieX split its ATCOR subsidiary into two distinct businesses, forming the CONNEQT spinoff. While ATCOR will continue to focus on vital signs monitors and software-as-a-solution products for hospital, research and pharma and specialist clinician markets, the CONNEQT consumer brand will focus on home health, wearables and consumer health apps. Through the CONNEQT arm, CardieX is on track to launch multiple new devices and digital products to the market over the next twelve months. One such product is the CONNEQT "Pulse" — a dual blood pressure monitor anticipated to be the first consumer vital signs monitor to include central blood pressure and CardieX’s SphygmoCor® technology, with FDA clearance expected in FY22’s second quarter. Another product is the CONNEQT Band wearable, which CardieX hopes will be the world’s first AI-powered, FDA cleared, clinical-grade smart health band featuring its patent-pending dual-PPG sensing technology. FDA clearance for this device is anticipated in FY22’s final quarter. CardieX believes its focus on medically reliable parameters will differentiate it significantly from other health-tech and wearable products that are more focused on general “lifestyle” parameters. To further develop its wearable health device, CONNEQT has partnered with LifeQ, which provides biometrics and health information from wearable health technologies. In addition, CardieX’s ATCOR spinoff continues to progress its partnership with Mobvoi. Both companies are working to develop a new smartwatch that incorporates a suite of ATCOR’s biometric algorithms and artificial intelligence-powered health analytics. Moving into the new financial year, CardieX is preparing to speak at a suite of medicine and technology conferences, including the Consumer Electronics Show (CES) — the world’s biggest annual tech event. The ASX-lister hopes to showcase three new products at CES 2022.