Cashed up Echo IQ tackles the US heart disease market with AI-based diagnostic technology

Heart disease diagnosis innovator Echo IQ (ASX: EIQ) has achieved a “step change in commercial readiness” in progressing its artificial intelligence (AI) based technology for the US market.

In its September quarterly report released on Friday, Echo IQ executive chairman Andrew Grover says the company has achieved a number of significant milestones, including a working product that complies with relevant technical certifications.

“Commercialisation is focused on the US, the world’s largest market for innovations in cardiology, where we have appointed a highly-respected industry leader to maximise the opportunities,” Mr Glover said.

“A positive pre-submission review with the US Food and Drug Administration (FDA), further advances in our clinical studies and inclusion in the internationally-respected HeartX accelerator program round out a successful quarter for Echo IQ.”

AI-based technology

Echo IQ’s AI-based technology allows for a fast probability assessment of aortic stenosis (valvular heart disease), using uploaded echocardiographic measurements.

This tool enables users to track historical measurements to see how a patient’s condition has evolved over time.

Echo IQ is one of only five of companies to be included each year in the prestigious HeartX accelerator program, run by HealthTech Arkansas and MedAxiom.

According to Echo IQ, participation in this program will guarantee it hospital pilot projects and clinical trials, within an established network of seven of the country’s largest healthcare providers.

Cashed up and ready to go

At the end of the September quarter the company had $1.81 million in the bank – a runway of two quarters – but in October secured $3.5 million in a placement at $0.15 per share.

This includes a US$150,000 (A$240,000) equity take-up from HeartX as part of the accelerator program.

The funds will be used to fund the company’s expansion in the US, where 650,000 people die from heart disease every year. Heart conditions also cost the US economy more than US$360 billion a year.

“Along with existing cash reserves and anticipated inflows, should ensure operating stability beyond commencement of regular revenue in 2023,” the company noted.

The quarterly report also shows cash receipts of $18,000, sharply down on June quarter revenue of $362,000 but reflecting the successful sale of the company’s Prometheus business intelligence information unit. Cash burn was $3.27 million – 9.9% lower than the previous quarter.

Impressing the movers and shakers

In another development, the research underpinning the company’s latest AI algorithm was presented by chief strategy and research officer (and leading Australian heart disease expert) Professor Goeff Strange, as a coveted “late breaking” inclusion at the European Society of Cardiology conference.

Held in Barcelona in August, the event was attended by several thousand influential cardiologists and other industry movers and shakers.

The research was conducted and compiled in conjunction with Echo IQ chief medical advisor Professor David Playford, technical director Rakesh Patel and data scientist Dr David Watts.

Airing the technology at such events will help to expand the company’s “increasingly engaged” network of prospective customers and partners, the company says.