With its cash reserves dwindling, digital health company Advanced Health Intelligence (ASX: AHI) is having to make a strong case for itself among shareholders. One of its bigger moves is the US FDA submission of July 2023. The purpose of an FDA Section 513(g) submission is to obtain clarification on the regulatory pathway for a medical device. The submission is seeking categorisation of the AHI BodyScan to be used explicitly in the identification and tracking of obesity. The FDA is reviewing the request, and AHI is awaiting written feedback.
The Company has sealed some deals in MENA (Middle East and North Africa). It signed a collaboration agreement with UAE-Based IntelliGen to deploy its tech throughout the Middle East. IntelliGen is spearheaded by Dr. Walid Abbas Zaher, who Forbes Middle East recently celebrated as one of 2023’s Top Healthcare Leaders.
Founder and head of strategy at AHI, Vlado Bosanac, said, “Despite recent fluctuations in AHI’s capital market performance, AHI’s trading performance on the NASDAQ during July, August and September continued to garner volume. The company witnessed gross ADR volume trading soar to over 100,000,000 traded ADR’s, a significant leap from an initial base of just 2,565,688 ADRs. Moreover, this trading was based on the new ADR ratio change.”
In Q1 FY24, the Company’s revenue stood at $55k, against a significant cash burn of over $3 million. It ended the quarter with just $219k in cash.
Bosanac added, “I acknowledge the recent stock performance might not mirror the company’s commercial accomplishments, but it’s paramount to understand that AHI’s technological capabilities and commercial milestones are independent of these fluctuations.”
The Company has an ongoing partnership with Pharmak Direct, and the duo has commenced the technology scoping phase in readiness for the Q1 2024 platform launch. Establishing these strategic partnerships is particularly timely and crucial, given the alarming prevalence of chronic diseases in the region. The UAE is grappling with escalating rates of conditions such as diabetes, cardiovascular diseases, and obesity. AHI’s tech can help change the trajectory of these health challenges.
AHI’s primary offering is its smartphone-based biometric health assessment (BHA), and it has initiated a joint study with renowned Stellenbosch University to test and evaluate its capabilities. This technology utilises a contactless method on smartphones, producing 61 health outputs across five significant health and disease categories: cardio-respiratory, body composition, estimated blood biomarkers, metabolic health, and mental health.
It also has an exclusive, perpetual license with Shanghai-based health insurance company Changlin Network. Changlin will direct its resources to commercialise and bring AHI’s innovative, scalable digital healthcare solutions to China.
AHI’s R&D projects for biometric health assessment, clinical trial validations, and on-device algorithms were approved after a government review. The Company can now claim 43.5% of related overseas R&D costs. AHI also expanded its global team in 2022, optimising operations and reducing annual costs by over $4.8 million. These optimisations will continue into H2 2023, aligning with AHI’s goal of achieving cash flow neutrality.
In the coming months, its commercial partnerships, telehealth platform Upvio Healthtech and Augmented Reality Concierge, are expected to launch. AHI expects to generate revenue from Upvio once it is launched.
As of 31 October 2023, AHI has secured additional funding of $1.2 million and is finalising a placement of $2.2 million. However, the Company said its cash burn is set to remain consistent, so it might need to hit the accelerator on its capital-raising efforts.
Alinda is a Business Reporter for The Sentiment
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