Mark Evans, Adaptix - Transforming Radiology | LSI Europe '22

Transcription

Mark Evans  0:05  

Everyone at this conference today everyone This room has had their life touched at one point by radiology. The problem with it, though, is that it's a 2d image of a 3d you. And as a result of that there are lots of problems that, that you don't see that end up in refer onward referrals. So at Adaptix, we're aiming to transform radiology by making radiology better and 3d at the point of care to the benefit of patient, physician and payer. So, if you've ever had a fracture, then you will have seen one of these devices, they're big, they're bulky, they need three phase power, they need their own room. And as a result of that the workflow when you attend the emergency department is very complex, we see a future where 3d sits on the desktop of the clinician, transforming the workflow and getting a better result earlier. So on the on the left, you see some images that you may well have seen before four or 5x rays, it's really difficult to find a fracture, if the fracture is not basically in line with the source and the detector. So our device, as you see in the center, looks like this. This is when it was on test. And what you'll see here is, is that we're imaging an elbow image. And the acquisition starts when you hear the Geiger counter go. Position, that's it started, you'll see there's no moving parts, the thing pivots in the middle of you standing foot down the leg, and it finishes now. The 3d image is available. Now, she's got a 3d image in 25 seconds. And now it's even faster. If you have to compare against a 2d image where quite possibly you'll have to reposition its transformation is faster in terms of workflow. So where are we now? Well, we have revenues for non destructive evaluation. We have revenues and veterinary we filed the 510 K for the orthopedic system you saw on test, dental and general radiology will follow. Why is this cool? Well, here you see a PCB. And as you go through, you can see the tracks each level, that gives you some idea about the depth differentiation. And here you can see the inside of the silicon chip, the dye is right in the middle. Now that's really cool. It's very good for electronics. And here we have an example for that. So as you go through, you can see the teeth on one side of the rabbit, then the teeth on the other, you can see details of the air canal, you can even see the top soft tissue around the esophagus. So transformational is better than a to than a 2d image. Here, you'll see fractures in the top, middle and bottom molar. And then you'll actually see two nerve canals inside a single root. And quite often you'll hear about root canal procedures that fail that might be because the wrong nerve has been filled. But you can't blame the dentist because he or she can't see it. Now they can. And then here you see lung tissue. And as you go through the lung tissue, you can see details of the actual airway inside. So that's all very well, that's all very well. But why now? Well, the big radiology companies make quite a lot of money, and they're quite well valued, valued and multiples of revenues. But there's three companies coming through all listed nanobots butterfly hyperfine. They're on tremendous valuations. And one of them Nan ox, we'll discuss in more detail, but we're basically ahead of them. So is this a big market? Well, the fact is, you've got GE Philips and Siemens and canon and Hitachi in it. It's a massive market. But just orthopedic which is where we're starting. That by itself is, is quite a large market. So these aren't direct competitors with the possible exception of Alex, but it shows you what's happening in this market in terms of valuations. And what you'll see here is that we're extremely well placed for a private company. So where are we? Well, we're many of us come from a background of Radiology. So we have, I found it relatively easy to get ISO 1345 for design development manufacture. We found a 510 K. CE mark will follow fairly shortly. We're a grown up business in terms of we have an ERP system, we report under IFRS, etc. Most importantly, though, we've got 26 patent families and over 280 filed patents, and that reflects the ongoing science base within the business. So we're not in orthopedics. And in veterinary we're actually offering a service and the reason is we don't just provide the system. We also provide the IT that goes with it, and in future it will include automated diagnostics. So you'll see on the right that what we started doing is quantifying the volume of caries lesions. So going beyond just that fuzzy maths that you see that the dentist points out. So here's an example of why this is important. So here you see a 2d a 2d image of a bone With a very subtle nondisplaced fracture, if you have any medical friends ask them about nondisplaced fracture to the scaphoid. They're a nightmare to find, and a very common cause of litigation. With our system, you see the subtle fracture really very easily. And what we've started to do now is apply machine learning over top of it to automate that detection of difficult to find clinical features. So how are we charging when event an author, we talked about service rather than trying to sell the unit, the aim is to go in with a one off installation fee, a fixed monthly fee, and then a relatively modest fee per scan, albeit with a minimum number of scans per month. On this, basically, we can build a really good recurring revenue model, where we're offering significant value to the clinician over and beyond just buying a normal 2d system off the shelf. So we've been extremely capital efficient compared to compared to other businesses in this space. And we're now looking to basically put our foot down on the accelerator by financing our paper scan business model using outsourced r&d. So internal r&d resource can focus on new feature generation, bringing us commercial hires, and obviously, accelerate our patent filings we have over 100 disclosed ideas that we could build on. So the team itself, three of us work together, the three of the guys on the left work together at Siemens healthcare. We've known each other for over 20 years, we've been all of us have been working inside Adaptix for at least six years. And we've also got three other three people who worked for GE. So we really understand this industry, 65 versus 15, PhDs MDs, over 132 years total tenure, and that reflects a really good staff retention, as well as for tech industry, quite a good gender balance and many other forms of diversity. So what are we doing? Well, we're going to sell what's on the truck, the vet the nd in the ortho, sweat, the numbers, specifically focusing on certain segments within our verticals, focus on average revenue per user to maximize our ability to finance the devices, keep to the core. So make the core of the technology and outsource the system integration, Landon expand in the US. So break into a couple of US states and expand from there become American, because fundamentally, that's where our main focus market is. Don't poke the gorilla. So we're not aiming to go head to head with GE, Philips and Siemens, it makes no sense. We know what they'll do. Our job is to go into the billet that the places they don't really serve the ambulatory surgical centers, the urgent care centers Et certera, places that won't trigger a competitive response, before we then go in with a chest product. Preserving optionality, you've seen that one of the advantages of this business is we've got a large number of places we could sell. Now, what's the ask? Well, we've got 4 million in the bag, potentially, we'll take another 6 million this round, and then further, further investment to then scale. So hopefully, what you've taken away from this time with me is that this is a transformational business. If we get this right, it'll touch the life of everyone that you know, it's a good opportunity. And it's well defended, through intellectual through intellectual property, such as patents, but also soft IP. I very much hope that you will take some time to reflect upon just how important radiology is to the diagnostic diagnostic process. And you'll find me afterwards and talk about how we can work together to one day touch the life of everyone that you know, thank you very much.