CurveBeam AI makes ASX debut, reports $11.48m full-year revenue

Point-of-care specialised medical imaging supplier CurveBeam AI (ASX: CVB) has made its Australian Stock Exchange debut following a $25 million initial public offering.

The company has issued 52.08 million shares at a price of $0.48 each, giving it an indicative market capitalisation of $153.7 million upon listing.

Proceeds from the IPO are to be used for enhancing sales and marketing, continued research and development, new product innovation and further clinical trials.

Annual results

The public listing coincided with the release of CurveBeam’s annual results which showed the company achieved $11.48 million in unaudited pro forma revenue for 2023, driven by sales of its flagship HiRise CT scanner.

HiRise has a dual ability to perform weight-bearing CT (WBCT) scans of a patient’s lower body while they are standing in a normal, weight-bearing pose, as well as traditional non-weight bearing scans of the upper and lower extremities.

To date, a total of 170 HiRise devices have been sold to customers worldwide, including well-recognised US medical institutions such as Mayo Clinic, Duke and UCLA.

CurveBeam’s reported revenue includes proceeds from the sale of 16 HiRise devices.

Stryker orders

Since July, medical technology company and HiRise distributor Stryker Corporation has taken orders for two HiRise devices through its Foot and Ankle division, representing a total of three devices booked or sold by Stryker during the reporting period.

CurveBeam said it would continue to work closely with Stryker to drive HiRise sales to hospitals and group orthopaedic practices, which sit within a $10 billion US addressable market.

The company recently sold and installed a HiRise system at the Hospital for Special Surgery in New York City, which is a globally-recognised orthopaedic specialty centre.

CurveBeam has an advanced pipeline of opportunities in the US which is expected to accelerate its revenue growth in 2024 and beyond.

Business model

CurveBeam’s business model is to sell its CT devices using an internal sales team, complemented by distributor agreements with larger medical device vendors which specialise in servicing orthopaedic surgeons and hospitals.

The company is currently working on the development of a CT bone mineral density (BMD) analysis and reporting software module.

It is expected to be available to HiRise customers as a software-as-a-service (SaaS) product in 2025 and has the potential to generate future revenues of up to $200,000 per device per annum, at a gross margin of more than 90%.

HiRise improvements

CurveBeam is also developing improvements to the HiRise platform including a stronger X-ray source to enable higher-resolution imaging of the hip and knee joints required for key surgical robotic systems.

The enhanced capabilities are expected to be available from late 2024 and will allow HiRise scans to be used routinely for all lower limb, patient-specific joint replacement planning and instrumentation.

Potential to advance care

CurveBeam managing director Greg Brown believes the company has the potential to successfully advance care in orthopaedics and bone health worldwide.

“We have ‘first to market’ proprietary technologies servicing a multi-billion dollar point-of-care weight-bearing CT market [and] we are eager to execute on our business plan to help ensure the issues of osteoporosis and osteoarthritis with total joint replacements are better managed under the one care giver,” he said.

“Succeeding in this goal should deliver value back to our existing shareholders and the new ones we have welcomed as part of our IPO.”