AI and medical technology firm Echo IQ Limited (ASX: EIQ) has inked a commercial licensing agreement with respiratory health MedTech company Respiri Limited (ASX: RSH) to incorporate Echo IQ’s EchoSolv cardiovascular decision support into Respiri’s remote patient monitoring (RPM) user base.
As per the agreement, Respiri will integrate EchoSolv cardiovascular solutions into its U.S. Remote Patient Monitoring (RPM) offering and will pay a monthly license fee for each patient meeting the American Heart Association guidelines for severe aortic stenosis and heart failure. Once it gets FDA clearance, Echo IQ stands to earn recurring monthly license royalties for patients identified by EchoSolv as having high-risk profiles for aortic stenosis and heart failure.
Undiagnosed cardiovascular patients, a demographic at serious risk of costly medical complications and reduced life expectancies, will be a focal point of this collaborative effort. Respiri is also set to actively promote EchoSolv within the U.S. Accountable Care Organisation (ACO)—a group of healthcare practitioners treating Medicare patients—sector.
Executive Chair of Echo IQ, Andrew Grover, said “We are pleased to be working with Respiri on this extension of Echo IQ’s AI-backed decision support capability in cardiology. The application of our solutions to remote patient monitoring in the ACO sector demonstrates the value of our technology in a variety of commercial healthcare settings. We look forward to working with the Respiri team on this opportunity. This agreement signals another step forward in the evolution of Echo IQ as does the commencement of the Company’s new CEO, Kimber Rothwell, who starts in his new role on Monday. We wish him great success.”
Respiri’s Remote Patient Monitoring (RPM) business is gaining traction in the U.S. healthcare landscape, particularly among healthcare organisations like the ACO and hospitals. RPM allows ongoing patient care continuity and clinical engagement after consultation or discharge, contributing to improved health outcomes and reduced healthcare costs.
The licensing agreement includes standard commercial terms with an initial term of 12 months and exclusive rights for the defined territories (U.S. RPM and ACO sectors). Exclusivity is contingent on meeting minimum sales achievements, triggering an automatic renewal for an additional 24 months.
The financial impact of the agreement remains uncertain at this stage, dependent on the commercial adoption of EchoSolv by users in the RPM/ACO and healthcare organisation sectors, as well as the ongoing usage of Respiri’s patient monitoring solutions.
Respiri CEO, Marjan Mikel said “Respiri continues to grow our RPM US business across all chronic conditions, cardiovascular included, with our customer charter to improve patient health outcomes thus reducing cost burdens. The Echo IQ partnership aligns with this resulting in better identification of high risk patients who may require medical intervention or clinical review, followed by ongoing RPM support, all of which is core to us.”
He added, “Response to this kind of extension to our services from ACO’s, providers and leading insurers has been very positive, and we are confident that this will be added to our service suite with new and existing clients growing our RPM patient pool.”
In another bid to drive its US expansion, Respiri recently completed a $6.5 million capital raising to support the expansion of its solutions in the U.S. market and secured access to an additional $20 million for potential future U.S. acquisitions. Echo IQ is also edging closer to the completion of its US reader study, following which it will lodge its final FDA submission.
With both companies making big moves into the States, teaming up to do so will be a strategic move that (hopefully) plays out in both their favours.
Alinda is a Business Reporter for The Sentiment
Latest posts by Alinda Gupta (see all)
- Ovanti’s iSentric signs contracts worth $14.4m with Malaysian commercial bank - June 27, 2024
- Baby Bunting fights back from retail downturn with 5-year strategy, includes Gen-Z focus and self-funded growth - June 27, 2024
- CLEO meets with US FDA to develop strategy for ovarian cancer test launch - June 26, 2024
Leave a Comment
You must be logged in to post a comment.