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MedX Health’s SIAscopy®, The Future of Remote Dermatological Diagnosis has Arrived

The Covid pandemic has certainly resulted in one positive thing – It has been instrumental in advancing numerous technologies. Perhaps the most obvious example is meeting from home via Zoom/Skype/Google etc., which has become commonplace, and may reshape the future of the workplace. Along this line, the necessity of trying to maintain healthcare, while not being able to meet in person, has rapidly advanced the acceptance of telemedicine. I have 80+ year old family members using video conferencing to seek advice from healthcare professionals, which is something I would have bet big dollars against just 2 years ago. I think the necessity of embracing this technology could lead to a step-change in the efficiency and effectiveness of the healthcare system. All of which should be good for humanity as a whole.

One participant in the telemedicine space is MedX Health Corp. (TSXV: MDX), a leading medical device and software company focused on skin health, utilizing its patented SIAscopy® device and its secure, cloud-based, patient data management system, the DermSecure® telemedicine platform. The SIAscope® is a cost effective medical device used to scan suspicious moles and lesions, using specific light wavelengths to penetrate 2mm below the surface of the skin. The scan is read by a trained physician or dermatologist and a determination is made as to whether the suspicious mole or lesion needs a follow-on appointment, or the patient is deemed clear of follow up. The scans taken by SIAscopy® along with other relevant patient information can be transmitted to specialist physicians for remote assessment. The technology is now being used in over 200 pharmacies in 3 countries with regulatory approvals in 35 countries including the USA, Canada, Australia, Brazil and the EU.

Even without a pandemic, getting in to see a dermatologist can be a challenge. With dangerous conditions like skin cancer on the rise, rigorous and regular screening is important, now more than ever. No one should have to anxiously wait for months to have a skin condition assessed. That’s why it would appear that MedX has the right tool for a world that is moving towards greater trust and acceptance of telemedicine, at least as an initial screening tool. SIAscopy® is rapid, patient-friendly, accurate, has been used for over 12 years, and is supported by over 15 published clinical studies. The hard work has been done, now it’s time to take advantage of the opportunity presented by the growing acceptance of new and unique ways of doing things.

To this end, MedX recently beefed up its C-suite by appointing a new President & CEO, Mr. Sylvain Desjeans, in August of this year and, more recently, a new CFO, Ms. Lesley Bourget. MedX is aiming to accelerate its global sales, and Mr. Desjeans has a strong track record of growing sales. He has more than 30 years of industry experience in both healthcare and pharmaceuticals. He has a history of successfully executing large-scale growth plans and global product licensing initiatives. Ms. Bourget has 30+ years of experience in healthcare, pharmaceutical and CPG industries, and has a proven track record for profit generation by successfully leading product portfolio optimization efforts, negotiating large-scale acquisitions, and conceiving and implementing mergers in the R&D space. These two appointments create a solid one-two punch at the helm of MedX.

The new leadership team is already spurring momentum for the Company with 3 corporate updates in the last week alone.

  • On Nov 17th MedX announced an inaugural clinical trial of its leading-edge DermSecure® Screening Platform at three university hospitals across Turkey in early 2022. The clinical trial will run for 6 months and involve an estimated 300 patients throughout Turkey. Following its successful completion, MedX and its distribution partner Makromed/Arhan Global A.Ş, anticipate the technology will become more widely available in clinics, pharmacies and insurance companies across the country.
  • On Nov 18th the Company and Al Zahrawi Medical Supplies LLC announced an MoU between the companies on a two-phase commercialization pilot and distribution agreement for MedX’s DermSecure® Screening Platform at select United Arab Emirates oncology and dermatology clinics. The three-month pilot will involve an estimated 1,000 patients at four dermatology and oncology clinics in Abu Dhabi and Dubai. Upon the successful completion of the two phases, the MedX DermSecure® Screening Platform will become more widely available at clinics and healthcare facilities across the UAE.
  • And just yesterday, MedX reported it had recently convened Medical Advisory Boards of leading dermatologists across Canada and the United States to explore clinical application opportunities for its image capture technology, SIAscopy®, and patient management system, DermSecure®. Summarized findings from both advisory boards will help validate the technological uses and benefits of SIAscopy® in clinical practice, particularly as a triage tool for dermatological assessment of suspicious moles and lesions.

The products have been proven, and to me anyway, seem to be an obvious addition to any dermatological screening repertoire. If the new management team can execute the game plan similar to the way they have in the past, MedX could see some exciting times ahead. With a current market cap of roughly $16 million, there is a lot of leverage to increased revenue. However, with a quarterly burn rate of $1.0-$1.5 million and only $1.8 million of cash available at the end of Jun/21 MedX could be requiring a capital raise in short order. Telemedicine is the promised land for widespread medical screening, and MedX has already arrived on its shore.




World class skin cancer diagnostic technology prepares to treat the world.

Have you ever tried to get a dermatology appointment? I don’t know about anywhere else in the world but in Canada it can be a real pain in the you know what. Apparently there are only around 500-550 dermatologists to serve 37+ million of us, so wouldn’t it be great if someone came up with a decentralized, more accessible solution for initial screening of potential skin anomalies. Well someone has, and that someone is MedX Health Corp. (TSXV: MDX). MedX is a leading medical device and software company focused on skin health with its SIAscopy® on the DermSecure® telemedicine platform.

MedX has developed the SIAscope®, which is a hand-held Class IIA medical device and the only image-capture technology on the market that provides clinical, dermascopic and spectrophotometric views of moles. It uses patented technology to view up to 2 mm beneath suspicious moles and lesions in a pain free, non-invasive manner, with the Company’s software then creating real-time images for physicians and dermatologists to evaluate all types of moles or lesions within seconds. The technology allows healthcare providers, like physicians, pharmacists and healthcare technicians, to capture perfect clinical images with 100% image integrity.

Seems like an elegant solution for those of us who shrug off every opportunity to visit a doctor given this preliminary assessment can be done at your local pharmacy, assuming they have a SIAscope®. If you go to the doctor more frequently than I do or a walk in clinic, the doctor or practitioner on staff can take the first step in assessing a suspicious mole or skin lesion. The scan is then read by a trained physician or dermatologist and within 72 hours a determination is made as to whether the suspicious mole or lesion needs a follow-on appointment, or the patient is deemed clear of follow up without having to wait an additional several weeks or months to get into the dermatologist for that first assessment.

As we’ve all been told hundreds of times (or more) over the years, detecting symptomatic patients as early as possible gives someone the best chance for successful treatment. Some of the stats are quite shocking when you consider that if a Stage 1 melanoma is detected, Health Canada estimates the cost to treat it at around $2,400 and the Canadian Cancer Society estimates the 5 year survival rate at 97%. Compare that to not diagnosing a melanoma until Stage 4 (when the cancer has spread to other parts of the body and is often hard to cure with current treatments) which sees the cost to treat skyrocket to approximately $1,000,000 and the 5 year survival rate drop to 20-30%.

So why isn’t the SIAscope® in every doctor’s office, pharmacy, clinic, grocery store and gas station on the planet? The team at MedX are trying. Currently their products are cleared for use in the US, Canada, Australia, New Zealand, the European Union, Brazil and Turkey. However, after proof of concept was completed the company recognized that it didn’t have its own telemedicine portal and didn’t control its data thus it was unable to control the ability to monetize all of this, which despite the noble effort of trying to diagnose cancer early, is ultimately the objective of a publicly traded company. So they took a step back and spent a year and a half to build out a platform, developed along with the dermatology community, that has become their patient management system – DermSecure®. The platform enables the Company to move to a recurring revenue model, where it can earn revenue based on the number of patient reports generated from the system. This new, secure system started getting traction in early 2020 with a 500 SIAscope® order from Brazil. Then Covid-19 threw a wrench into the rollout.

Additionally, the company has a second business line, its phototherapeutic products that have been available in the market for many years. The Company has sold thousands of these products to practitioners in clinics, academic facilities, hospitals, long term care facilities, athletes and sports teams. However, the markets in which the Company sells these products are highly competitive, characterized by pricing pressure and multiple competitive products. Correspondingly, in Sep/20 MedX announced management changes to enhance its focus on its dermatological services and products. That focus shift has led to a sales agency agreement with the Ziemer Professional Corporation to expand North American clinic sales, a partnership with Netherlands national telehealth leader to roll out DermSecure® and an MoU with Empower Clinics in Ontario to pilot MedX’s leading-edge DermSecure® Screening Platform.

With COVID-19 almost doubling the wait times in order to see a dermatologist, MedX’s DermSecure® telemedicine platform provides a perfect solution which should continue to gain traction. The heavy lifting has been done, the product is now scalable and management is focused on getting this product to market. Let’s see if that starts translating into some much anticipated revenue growth.




Commercializing their telemedicine platform globally for the early detection of skin cancer, MedX Health revenue (and stock) is rising

MedX Health Corp’s  (TSXV: MDX) (‘MedX’) stock price is beginning to move higher as they gain further success commercializing their SIAscope and DermSecure™ telemedicine platform globally for the early detection of skin cancer.

MedX’s stock price is moving

Source

MedX is a leading medical device and software company focused on the early detection of skin cancer. MedX’s platform is being used in over 200 pharmacies in 3 countries with regulatory approvals in 35 countries including Australia, Brazil, Canada, the European Union, New Zealand, Norway, Turkey and the USA. In the Netherlands MedX and their local partner have begun to very successfully rollout their platform in skin screening clinics.

The Netherlands has started very strongly

In news released late in 2020, MedX announced they are now rolling out DermSecure® in the Netherlands, partnering with national telehealth leader IVPG. Below are the key highlights:

  • “MedX partners with national telehealth leader IVPG in the Netherlands.
  • Two skin screening clinics opened in November 2020, with more than 800 assessments on close to 500 patients completed to date using MedX’s DermSecure® platform.
  • Three additional clinics to come online in the Netherlands by the end of December 2020.
  • IVPG plans to expand to 41 skin assessment clinics by 2022.
  • More than half of all cancers reported in the Netherlands are skin cancers.”

Based just on the above information we can see MedX’s DermSecure® should be in a total of 46 clinics by 2022, all going to plan. Clearly, if the ramp-up of clinics does reach 46, then the number of assessments will be much higher, as would revenues, just for the Netherlands. In Norway, MedX has already done over 80,000 assessments/scans. MedX is already on the way to achieving sales in several other countries including North America, Mexico, Brazil (500 units sold), and Canada.

MedX makes some money on selling the hardware (costs C$700 and sells for C$1,600-2,000), but the real potential revenues are set to come from the scans. MedX receives ~$10 per assessment/scan based on their Software as a Service business model. The scan cost for MedX is only ~C$0.26 so margins are very high.

December 15, 2020, Beacon Securities report states:

“We believe investors should understand the recurring, high margin, revenue juggernaut that is in the midst of being created. Given the metrics already apparent after just one month at the 2 installed clinics, 41 clinics would represent ~$3 million of recurring revenue (ie. 41×312 days x20 scans x $10).”

The same report sets a 1-year price target for MedX of C$0.45, with a buy rating.

Massive revenue growth potential for MedX

MedX’s goal is to roll out an initial 1,500 hardware devices (SIAscope) to an approved distributor in an approved location, say Brazil. MedX’s President, Dermatology Services, Mike Druhan stated: “At 1,500 installs in year 1 it represents C$8.4M in revenue for us”, up from C$860,000 in revenue in 2019. The C$8.4M would be C$3M in upfront one-off hardware revenue, and potentially C$5.4M in recurring revenue. Note for now the Brazil rollout is at 500 hardware devices, so the above figures are to show the potential and the business plan of MedX.

MedX has also recently begun a rollout in Ontario Canada at select Ontario Integrated Health Centres with partner Empower Clinics Inc. Steven McAuley, Chairman and CEO of Empower, stated:

“MedX is an ideal teledermatology partner, as their screening platform is second to none. We look forward to the results of this pilot and making this platform more widely available throughout our network.”

Closing comments

The best time for investors to consider a company is often just as they start to commercialize and bring in rapidly growing revenues. With MedX it looks like now is that time. The best companies are Software as a Service companies. Again another tick for MedX.

Finally, MedX has a competitive advantage due to their advanced technology that can view 2mm below the skin. This is backed up by a secure telemedicine platform and a track record of success.

The stock price has begun to climb, however, the market cap still looks reasonable at C$40M, especially if their Netherlands success continues as well as their other global rollouts. What a great time to know about MedX Health Corp.




A more accurate assessment on skin cancer is the way MedX plans to save the planet

No one should ever die of skin cancer.

Wow – doesn’t that just wake you up a little bit? The deadliest cancers include lung and bronchial cancer, colon and rectal cancer, breast cancer, pancreatic cancer, prostate cancer, leukemia, Non-Hodgkin lymphoma, liver cancer, melanoma and ovarian cancer. According to the American Cancer Society in their July 2018 report, in the period from 2008 – 2014, overall cancer incidence rates decreased by 2.2% in men and remained stable in women. From 1999 – 2014, overall cancer deaths decreased by 1.8% per year among men and 1.4% per year among women.

Unfortunately, melanoma (skin cancer) still ranks in the “top ten” among both men and women – not a ranking that we really need to be ecstatic about.

Enter MedX Health Corp. (TSXV: MDX). Originally founded in 1999 with a focus on laser and phototherapy products, the company still maintains this highly reputable product line in a very competitive global marketplace. MedX first acquired their other product technology (SIAscope) in 2011 and through improvements, has positioned MedX as a leading medical device and software company.

Focused on the early detection of skin cancer, MedX’s SIAscope is a handheld Class IIA medical device. First, the SIAscope takes 5 images, including 4 spectrophotometric images 2 mm below the skin’s surface showing the disorganization of a suspicious mole or lesion. This allows dermatologists to make a more accurate assessment based on the underlying physiology of the skin. MedX is the only technology in the world that can present this additional critical imaging, taking remote medicine to a new and improved level for provision of timely, accurate diagnoses.

Second, SIAscopy on DermSecure™ captures the dermatological images from the SIAscope and forwards them for assessment by a dermatologist. SIAscopy is a fully integrated service that combines innovative, peer-reviewed technology with a secure, cloud-based patient management system. It’s the only tool that offers perfect image capture technology with clinical, dermascopic and spectrophotometric views of moles and other skin conditions. Designed by dermatologists and physicians, SIAscopy is being used in over 200 pharmacies in 3 countries with regulatory approvals in 35 countries including USA, Canada, Australia, Brazil and the EU.

Finally, the results are communicated back to healthcare providers and patients. In 72 hours or less – timely turnaround indeed! MedX stores patient’s information for 10 years, which means a patient can retrieve their patient file and take another scan of the same mole or lesion years later and compare it to previous images to see if there has been any change. MedX is the only company in the world that has made this commitment to the patient and their providers. Privacy policies comply with all regulations in jurisdictions in which the company operates including PIPEDA, HIPAA and GDPR. In addition, they deploy the latest in security measures, engage in rigorous third-party threat testing and real-time monitoring.

Wow – who knew that it could be that easy? It really isn’t, as the team at MedX has put decades of knowledge, expertise and technology into development of a world-leading suite of tools. In addition to a highly experienced leadership team and Board of Directors, the company has assembled a Medical Advisory Board with experts from Canada, the UK and the US, all specialists in their fields who bring a wealth of knowledge and expertise to MedX.

The company has a very small market capitalization compared to similar companies in the US – only about C$20 million. The technology is leading edge, although the market also cares about revenue which has been negatively impacted by the ongoing coronavirus pandemic.

The company has the longevity and the expertise in a competitive marketplace. Management is embarking on a program to raise global awareness to improve future revenues and cash flow and they have raised new equity capital of just over C$3.0 million in 2020, significantly reducing negative working capital. Apparently there will never be less cancer in the world and here is a technology company that can at the very least help in the goal that “cancer can be beaten”.




MI3 Tech Note on MedX Health Corp. (TSXV: MDX)

Mario Drolet President of MI3 Communications Financières Inc. (MI3) released a technical note at market open today on MedX Health Corp. (TSXV: MDX) for exclusive distribution on InvestorIntel. In this note, MI3 highlighted the following points on MedX Health Corp.:

  • MedX is a leading medical device and software company focused on skin cancer with its DermSecure™ telemedicine platform, utilizing its SIAscopy technology.
  • The SIAscopy technology utilizes light and its remittance to view up to 2 mm beneath suspicious moles and lesions in a pain free, non-invasive manner, with its software then creating real-time images for physicians and dermatologists to evaluate all types of moles or lesions within seconds.
  • MedX Health is the only company who has both a regulatory approved front-end scanning technology (SIAscope) and a HIPPA, PIPEDA and GDPR approved tele-health platform (DermSecure) through which to send the high-resolution images securely to the dermatologist.
  • MDX has double since low of $0.08 …
  • Complete a 3.1 Million financing …
  • MDX Stock traded over 22 Million shares between $0.08 & $0.16
  • Support: S2; $0.12 – S1; $0.14    Resistance:   R1; $0.16 – R2; $0.18

About MedX Health Corp.

MedX, headquartered in Mississauga, Ontario, is a leading medical device and software company focused on skin cancer with its DermSecure™ telemedicine platform, utilizing its SIAscopy technology. SIAscopy is also imbedded in its products SIAMETRICS™, SIMSYS™, and MoleMate™, which MedX manufactures in its ISO 13485 certified facility. SIAMETRICS™, SIMSYS™, and MoleMate™ include hand-held devices that use patented technology utilizing light and its remittance to view up to 2 mm beneath suspicious moles and lesions in a pain free, non-invasive manner, with its software then creating real-time images for physicians and dermatologists to evaluate all types of moles or lesions within seconds. These products are Health Canada, FDA (US), ARTG and CE cleared for use in Canada, the US, Australia, New Zealand, the European Union and Turkey. MedX also designs, manufactures and distributes quality photobiomodulation therapeutic and dental lasers to provide drug-free and non-invasive treatment of tissue damage and pain.

PLEASE DO YOUR DUE DILIGENCE

Disclaimer: This MI3 Technical Note produced by MI³ Communications Financières is neither an offer to sell, nor the solicitation of an offer to buy any of the securities discussed therein. The information contained is prepared by MI3, emanating from sources deemed to be reliable. MI3 Communications Financières makes no representations or warranties with respect to the accuracy, correctness or completeness of such information. MI³ Communications Financières accepts no liability whatsoever for any loss arising from the use of the information contained therein. Please take note that for compliance purposes, all directors, consultants or employees of MI3 Communications Financières are prohibited from trading the securities of the company and MI3 Communications Financières is a shareholder and do not intend to sell any shares during the distribution of this note.




Druhan on MedX Health’s skin cancer technology deployment deal (SIAScope) with exclusive Brazilian distributor

“Our system is a proper SaaS model. We have an optical scanner (SIAScopeTM) that will take an image of a mole or a lesion that is suspicious. Our differentiator is that it goes 2mm below the skin, therefore, it takes perfect view not only on the surface but below the skin as well. We have a telemedicine platform that will send a patient’s health information along with the image to a dermatologist for a proper assessment.” States Mike Druhan, Vice President of Corporate Development at MedX Health Corp. (TSXV: MDX), in an interview with InvestorIntel’s Peter Clausi.

Mike went on to provide an update on MedX Health’s recent purchase order for 500 SIAScopeTM units for deployment on its DermSecureTM telemedicine platform from its exclusive Brazilian distributor. He said that the order is the single largest order in the company’s history. He continued by saying that the initial hardware order is close to a million dollar and after the devices have been deployed the company will get anywhere between $1.6 to $2 million a year as recurring revenue.

To access the complete interview, click here

Disclaimer: MedX Health Corp. is an advertorial member of InvestorIntel Corp.




Scott Spearn on MedX’s skin cancer screening in Brazil and Spain

“It is an incredible project for MedX and we are fortunate enough to be in a position we are with Brazil. It is a population of about 210 million people and they are facing a major skin cancer problem. Meaning that it is not being detected until the late stages. i.e. states 3 and 4. Our device will help the people of Brazil detect it at its early onset…We have an exclusive distribution partner in Brazil. We have 45 salespeople trained in the use of our SIAscope on DermSecureTM. We are looking at significant revenues over the next two or three quarters.” States Scott Spearn, President and CEO of MedX Health Corp. (TSXV: MDX), in an interview with InvestorIntel’s Tracy Weslosky.

Scott went on to provide an update on MedX’s operations in Spain. He said that the company is working with a large group and a number of national organizations in Spain. They have done 1368 patients counsels which involved 2475 scans which identified 9 melanomas. Scott also said that mobile apps are not effective in detecting skin cancers. MedX’s SIAscope takes five images and reaches two millimeters below the skin and then uploads to the DermSecureTM  software platform so that the images can be transmitted to a dermatologist for quick and early diagnosis. No other product does that.

To access the complete interview, click here

Disclaimer: MedX Health Corp. is an advertorial member of InvestorIntel Corp.