CurveBeam AI (ASX: CVB), a specialized medical imaging provider, has successfully entered the Australian Stock Exchange with a $25 million IPO. The company issued 52.08 million shares at $0.48 each, resulting in an indicative market capitalization of $153.7 million upon listing. The IPO proceeds will be allocated to sales and marketing enhancement, ongoing research and development, new product innovation, and further clinical trials. The company’s annual results were unveiled alongside its listing, indicating unaudited pro forma revenue of $11.48 million in 2023.
Driving Factors: Flagship HiRise CT Scanner
CurveBeam’s revenue surge was largely driven by sales of its flagship product, the HiRise CT scanner. This innovative technology has a dual function, capable of conducting weight-bearing CT (WBCT) scans of the lower body while patients stand in a normal pose, as well as traditional non-weight bearing scans of upper and lower extremities. To date, the company has sold 170 HiRise devices globally, including prominent institutions such as Mayo Clinic, Duke, and UCLA. These sales were instrumental in generating the reported revenue, which also encompassed proceeds from the sale of 16 HiRise devices.
Strategic Collaborations and Market Growth
CurveBeam’s collaboration with Stryker Corporation, a medical technology company and HiRise distributor, has contributed to the positive revenue trend. Stryker has received orders for two HiRise devices through its Foot and Ankle division since July. CurveBeam plans to continue working closely with Stryker to drive HiRise sales to hospitals and orthopaedic practices, capitalising on the lucrative $10 billion US addressable market. A HiRise system has recently been installed at the globally-renowned Hospital for Special Surgery in New York City.
Future Initiatives and Business Model
CurveBeam’s growth strategy involves both direct sales and distributor agreements with established medical device vendors. Additionally, the company is developing a CT bone mineral density (BMD) analysis and reporting software module, slated for release as a software-as-a-service (SaaS) product by 2025. This module has the potential to generate substantial future revenues, estimated at up to $200,000 per device per annum, with an impressive gross margin exceeding 90%.
Enhancements to HiRise Platform
CurveBeam’s commitment to innovation is evidenced by its ongoing developments, including enhancements to the HiRise platform. A stronger X-ray source is being incorporated to enable higher-resolution imaging of hip and knee joints, crucial for surgical robotic systems. This upgrade, expected by late 2024, will allow routine use of HiRise scans for lower limb joint replacement planning and instrumentation, marking a significant advancement in patient-specific care.
Impact on Healthcare
CurveBeam’s Managing Director, Greg Brown, envisions the company as a catalyst for advancing orthopaedics and bone health worldwide. With proprietary technologies tailored to the point-of-care weight-bearing CT market, CurveBeam aims to address issues such as osteoporosis and osteoarthritis with comprehensive solutions. Brown believes that achieving this goal will not only benefit existing shareholders but also align with the company’s mission to contribute to improved patient care.
In conclusion, CurveBeam’s ASX debut marks a significant milestone as the company continues to leverage its innovative HiRise CT scanner and strategic collaborations to drive growth in the specialised medical imaging sector. With robust financial performance and a commitment to technological advancements, CurveBeam is poised to make a lasting impact on orthopedics and bone health.
