Artificial Intelligence is a disruptive force in healthcare, revolutionising it through automated medical imaging like X-rays, MRIs, and CT scans. It promises faster, more accurate diagnoses, lowers costs, and enables personalised treatment. 

AI medical imaging company CurveBeam AI (proposed ASX: CVB) embodies this development, bringing into the table its weight-bearing CT scanner HiRise as it prepares for its forthcoming debut as a publicly listed company scheduled to list on 23 August 2023.

With an indicative market capitalisation of $153.7m, the IPO comprises Institutional Offer and Broker Firm Offer, and will be fully underwritten by Lead Manager Bell Potter. No general public offer of new shares will be made under the offer.

Undiagnosed bone fragility can lead to severe consequences, affecting both ageing individuals and those undergoing joint replacements. Traditional imaging methods like X-rays might not offer complete musculoskeletal insights. 

However, the HiRise’s weight-bearing CT scanner addresses this by being able to produce accurate evaluations of bone and joint function under physiological loads. This tech aims to enhance diagnosis accuracy, treatment planning, and progress monitoring, particularly for weight-bearing-influenced conditions, as well as improve fracture risk assessment including non-osteoporotic cases. 

The Company possesses various CT devices approved for sale in major regions like the US, Germany, and Australia. With over 170 devices supplied to 15 countries, prominent institutions like the Mayo Clinic and Duke Health in the US are among its clients.

CurveBeam will leverage the IPO momentum to broaden HiRise technology’s scope beyond its current imaging capabilities. The Company is currently developing CT-based bone mineral density (BMD) scanning that can perform more detailed scans such as bone microstructure analysis too. The BMD scanning will be available to existing customers on the HiRise, and will be offered as SaaS to surgeons, charged per scan through existing payer coverage. 

HiRise’s potential market in the US is valued at around $10 billion, including orthopaedic surgeon groups, imaging chains, and hospitals. The innovation enhances the evaluation of bone fragility and the prediction of fracture risk, ultimately addressing the needs of 1.7 billion people worldwide diagnosed with musculoskeletal disorders and 700 million of whom are suffering from osteoarthritis.

CurveBeam was formerly StraxCorp Pty. Ltd, and was incorporated in 2009 by researchers from the University of Melbourne to commercialise research using bone microstructure analysis to improve the assessment of bone fragility and subsequent fracture risk. In October 2022, the Company acquired its US-based equipment manufacturing partner, Delaware-based CurveBeam via a share-based Merger. After finalising the Merger, the Company officially rebranded as CurveBeam AI Limited.

At the moment, the Company derives its entire revenue from selling CT devices, along with income from service contracts and software upgrades. Sales are presently on a lump sum basis, but in the future, customers may have financing choices through partnerships with Stryker Corporation’s US foot and ankle group or the Company’s leasing options.

As of December 31, 2022, CurveBeam holds $68.9 million in total equity. The Company anticipates net loss after tax to be $25.4m for FY23 including adjustments for the merger of CurveBeam US and CurveBeam AI.

The IPO will raise $25 million at an offer price of $0.48 per share, which will be allocated towards its growth strategy in expanding CT device sales in cleared international markets like the US and Germany and commercialising AI products (after FDA clearance) by offering BMD assessments and fragility screening.

Current CEO and Managing Director Greg Brown will remain in his leadership position, with his  6.5% share ownership to be diluted to 5.4% upon listing.