Medical software company Resonance Health (ASX: RHT) is set to target expansion into Japan through a collaboration agreement with medical imaging company Micron Inc in an effort to accelerate its sales growth in the country.
Headquartered in Tokyo, Micron specialises in providing medical imaging support services to contract research organisations (CROs) and biopharmaceutical companies globally. Having operated for more than 20 years, Micron has supported the development and launch of more than 40 drugs, assisting over 250 customers through a range of imaging services and clinical trial support.
The collaboration aligns with Resonance Health’s strategic expansion into new geographies for its clinical trial and diagnostic services with their tech primarily utilised for accurate assessments of liver iron concentration (LIC) and liver fat.
Japan’s increasing prevalence of liver cirrhosis due to alcohol-related and non-alcoholic steatohepatitis (NASH) presents a significant opportunity for Resonance’s medical imaging products and services. Japan, one of the largest pharmaceutical markets globally, recorded sales revenues exceeding USD $100 billion in 2021.
“We are delighted to be partnering with Micron. Micron has built a truly great business with service provision to over 250 customers and our collaboration with them represents a great opportunity to deliver products and services into the large and lucrative Japanese market,” said Resonance CEO, Andrew Harrison.
Under the Collaboration Agreement, Micron will promote Resonance’s medical imaging products and services, including FerriScan, FerriSmart, HepaFatScan, HefaFatSmart, and LiverSmart, through its INDICATE platform and introductions to its customers and clinical trial partners. These products, cleared by regulatory bodies in the USA, Europe, UK, and Australia, offer non-invasive MRI-based assessments for liver iron concentration, liver fat, and heart iron loading, crucial for managing diseases and drug development.
However, the Collaboration Agreement stipulates that Micron’s promotion of Resonance’s products is voluntary, and Micron will not receive commissions or incentives for any resulting agreements between Resonance and new customers. The agreement can be terminated by either party with written notice, after which Resonance’s products will cease to be featured on INDICATE or promoted by Micron.
For the Half Year ended 31 December 2024, Resonance reported record revenue of $3.26 million which represented a 56% increase on the previous corresponding period. This was reflected in normalised operating EBITDA of $403K for the Half Year which was up 165% on the same corresponding period.
Resonance expects growth to continue in the second-half with strong software sales and revenue from its contracted clinical trial likely to result in Full Year revenue being weighted to the second half.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, bloodstock enthusiast and former Analyst.
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