Heart disease technology company Echo IQ Ltd (ASX: EIQ) has struck a major deal in the US, which will lead to one of its technologies being deployed into the Mount Sinai Health System.
Growing the footprint
The company said in a statement to the ASX on Tuesday that EchoSolv AS would be deployed into Mount Sinai, which comprises seven hospitals, more than 400 outpatient practices, and more than 3,760 beds
EchoSolv AS is an AI-based decision support software package for the assessment of severe aortic stenosis.
The company said Mount Sinai was a prestigious organisation to be associated with.
It added:
The system services millions of patient interactions annually, encompasses over 3,760 beds across campuses, and is consistently ranked among the top hospitals in the US across multiple specialties, including cardiology and heart surgery. Its scale, research pedigree and clinical leadership position it as a high-volume, high-complexity healthcare network at the forefront of adopting advanced digital health and AI-enabled technologies. The deployment marks a significant milestone for Echo IQ and reflects the Company's continued growth as health systems and cardiology practices seek practical AI products that can be integrated into existing clinical workflows.
Echo IQ US General Manager Nick Lubbers said the company was proud to be working with such a highly regarded health system.
He added:
This deployment is an important step in our US commercial growth and underscores increasing interest in solutions that can support cardiologists within routine echocardiography workflows. We believe EchoSolv AS offers a practical, measurement-based second look that can help physicians assess severe aortic stenosis more consistently and look forward to working with The Mount Sinai Health System to demonstrate its utility at scale.
Echo IQ shares initially traded more than 8% higher on the news on Tuesday morning before falling back to be 5.2% lower at $1.08.
Shares looking like good value
The analyst team at Morgans have a price target of $1.30 on Echo IQ shares, but has flagged that there's further significant upside possible following FDA approval for one of the company's other technologies, EcholSolv HF.
As they said in a note to clients recently:
We initiate coverage with a Speculative Buy rating and $1.30 price target with potential upside to $1.68 on approval/reimbursement, underpinned by near‑term FDA clearance, reimbursement progression, and a credible pathway to US commercial scaling. We expect a positive outcome from the EchoSolv HF FDA 510(k), due imminently, which unlocks the large, structurally undiagnosed US cardiac market. Combined with attractive unit economics and clear patient and hospital benefits, we see a high probability of rapid US adoption and monetisation.
Echo IQ is valued at $757 million.
The post This ASX biotech has just announced a major US deal appeared first on The Motley Fool Australia.
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