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Feature article October 3, 2017:


DIAGNOS Inc. Expands Proven AI Platform into Early Detection of Cardiovascular Disease, Positioning Company as First-Mover with Major Upside Potential in a near-US$400B/annum Market Place


Vertical Growth Trajectory Continues for DIAGNOS Inc.

Applying artificial intelligence in the diabetes and cardio vascular disease market, a robust healthcare business has emerged.



  (TSX-V: ADK) (OTCQB: DGNOF) (Frankfurt: 4D4)


Share data, Capitalization, & Corporate info

 Shares Outstanding:  ~172 million

 Fully Diluted:  ~200M

 Recently Traded: ~CDN$0.12/share (TSX-V: ADK)

 52 Week High/Low: $0.20 / 0.04

 Current Market Capitalization: ~$20 million Canadian

 Corporate Website:


DIAGNOS' share price is poised for significant upside revaluation as its vision loss prevention Computer Assisted Retinal Analysis (CARA) business targeting diabetics has, as of this fiscal Q3 (ending December-2016), turned profitable and its revenue growth curve is rapidly accelerating with no stop in sight.

  • Able to cost effectively screen millions of diabetics; proprietary algorithms are capable of automatic detection of pathology in retinal images and lesion classification.

  • Big Pharma now converting pilot programs to lucrative growing contracts for ADK.V (Novartis & Bayer are customers).

  • ADK.V now positioned to target hospitals and clinics in USA.

  • Governments are now starting to see the value in having ADK.V screen diabetic populations in order to contain costs.

  • Expansion of proven AI platform into Cardiovascular Disease positions Diagnos as first-mover in a near US$400B market place.

click to access

June 2017 Report, $1/share target

DIAGNOS Inc. Issued Significant Upside Market Valuation In Research Report


ADK.V is identified in a newly issued research report by Market Equities Research Group with several potential catalysts that exist near-term with potential to result in $150 million market cap ($1 /share) for ADK. DIAGNOS Inc. is successfully continuing its transition from R&D to commercialization of the CARA disruptive technology. This report follows on the heals of DIAGNOS Inc. revising of its corporate mission in healthcare after divestiture from mining industry..



DIAGNOS Inc. (TSX-V: ADK) (OTCQB: DGNOF) (Frankfurt: 4D4) is a Canadian-based healthcare software technology company, its 'Computer Assisted Retinal Analysis' (CARA) business has been successfully applying artificial intelligence in the diabetes market for several years via non-invasively identifying patients at risk of vision loss. The Company is active in 15 countries in total for installations of its CARA technology platform worldwide, this number and related metrics are only just getting started with the company in the early stages of a vertical growth trajectory. On September 19, 2017 the Company announced an expansion of its platform into early detection of Cardiovascular Disease; click to view release "DIAGNOS Provides Timelines on Cardiovascular Disease (CVD) Prevention Test Development and Commercialization Plans".



Fig. 1 Retinal image enhanced with DIAGNOS software, prepped for A.I. auto-detection of pathology & lesion classification.


Valuation Commentary: DIAGNOS Inc.'s proprietary artificial intelligence algos continually learn and refine analytics from large data sets. If results from the newly announced move into cardiovascular disease (CVD) are anything similar to the success DIAGNOS has achieved with early detection of diabetes, it will affirm the Company has effectively cracked the key to early detection of heart disease via computer assisted retinal analysis, and the potential implications for shareholders of ADK.V are enormous, with dramatic upward share price appreciation being a certainty.


The newly announced calibration of the application for CVD will be done simultaneously in 4 countries (Algeria, Canada, Mexico and United States) with a minimum of 1,000 in each country with the support of 22 cardiologists. This will enable Diagnos to insure the sustainability of its solution worldwide.

Diagnos' current market cap (currently ~$20 million Canadian for ADK.V trading at 12 cents) is miniscule compared to its potential. Success in early detection of heart disease in such a non-invasive manner (for the patient), and disruptive to the marketplace, similar to that which Diagnos Inc. has already proven it is able to do for diabetes, will quickly result in the Company being a primary go-to service in a massive market place that currently spends near US$400 Billion a year in drugs and services for cardiovascular and stroke issues.


Understanding the success to date in tackling Diabetes:


DIAGNOS Inc. is expanding globally as a first-mover in this sector with proprietary disruptive technology whose adoption is quickly gaining momentum, doctors and specialists strongly endorse it as large numbers are non-invasively screened that would otherwise not be seen. ADK.V's revenue growth curve is rapidly accelerating with topline >100% Y/Y. Swiss pharmaceutical giant Novartis has become the Company's biggest customer, initially engaging ADK.V for a series of pilot 'wellness' programs over the last couple years in various countries, paying DIAGNOS to screen patients. Recently Novartis has begun converting pilot programs into contracts, with more on the way due to the overwhelming success in identifying patients that could benefit from Novartis' treatment. German pharmaceutical company Bayer has only recently engaged ADK.V with similar intentions. DIAGNOS recently signed a contract with an unnamed pharmaceutical company targeting the US, the world's largest healthcare market. ADK.V has also started to sell its solutions to governments on a cost-reduction approach, recently signing its first government contract in Mexico. Supported by a strong growth and recurring revenue model, and a low cost growth associated with its artificial intelligence software, we expect shares of ADK.V to rise several multiples higher than its current price near-term.



As the reality of the accomplishments and potential are understood by the marketplace we anticipate the share price of ADK.V will move nearer to 50 cents (on the way to much higher valuations from there) to better reflect its current inherent value. Further below we document compelling projected transaction and revenue numbers; Further below is document compelling projected transaction and revenue numbers, important to note is that the Company's fiscal Q3 (ending December-2016) showed profitability, and the Company is expected to experience increasingly robust financials. Patient tests per month were ~22,000 in October-2016, and are expected to increase to between 60,000 - 70,000 patients per month in 2017.  As impressive as those increases in patient tests are, it is only just the beginning. How big will this get? The answer is 'we just don't know', but there are numerous indicators ADK.V is going on a massive run; experts believe there are ~500 million diabetic individuals worldwide (source: WHO) and the Company's adoption growth curve for its technology is very early stage. The Company negotiates its pilots with Pharma so that upfront costs are covered, ensuring it has a big enough commitment so that DIAGNOS rarely needs to spend money up front on incremental business. With four deployment options for its technology, all running at least 55% margin per transaction, ADK.V has impressive revenue projections based on committed contracts alone. Future projections are certain to improve as the level of new inquiries now coming into the Company and discussions regarding new business from big Pharma, governments, hospitals, and clinics world-wide now are off the chart. Often there is lag for new business from initial pilot (dipping their toe) to commitment (full plunge into larger contract), but as DIAGNOS has proved with Novartis and the Government of Mexico (see July 17, 2017 news release entitled "DIAGNOS signs new contract valued at $ 4.16 Million USD (5.26 Million CAD) with the Government of Mexico at ISSSTE to screen and monitor 320,000 diabetics in 2017 further to a successful pilot program"  -- it's a win-win for everyone to be in business with DIAGNOS. Where this is headed is truly exciting, the long-term strategy for the Company is to eventually shift more toward standalone deployment of its technology (which has highest margins for the Company), with others/partners carrying the operating costs, and DIAGNOS acting as a centralized world-wide cloud-based database/processing center (a secure state-of-the-art facility in Montreal where its software enhances and analyzes retinal images of patients) handling large volumes of transactions.


Recent (July 5, 2017) news of significance regarding stronger footing in nascent US market:


DIAGNOS Announces Successful Pilot at Chaparral Medical Group in California and a 3 Year Contract with the Opening of a Second Eye Screening Clinic


BROSSARD, QUEBEC--(Marketwired - July 5, 2017) - Diagnos Inc. ("DIAGNOS" or "the Corporation") (TSX VENTURE:ADK)(OTCQB:DGNOF), a leader in early detection of critical health issues through the use of Artificial Intelligence, announces today the signing of a three year agreement with Chaparral Medical Group ("Chaparral"). We are also happy to announce the opening of a second eye screening clinic in California.

''The United States is a key market for Diagnos. By working closely with Chaparral`s 23 clinics, we have developed a new business model for the US market. Chaparral is a very high value referral account with the best practice in healthcare. We are very proud to be working and having them as our customer. We've learned a lot from the one year pilot program. Now is the time to build on it and increase our market share of diabetic retinopathy screening. Having a second clinic will have a significant contribution to the number of patients under the guard of CARA in the USA" said Yves-Stéphane Couture, VP Sales of DIAGNOS.

Yearly eye exams for diabetic patients are a common requirement guideline of almost all endocrinology society and medical diabetic associations around the world. Our CARA (Computer Assisted Retinal Analysis) platform at Chaparral will help to meet this high value requirement. Higher compliancy with diabetes disease management means:

  • Reduction in blindness, amputations and stage renal disease propensity

  • Increase in quality adjusted life years per patient

  • Significant reduction on care cost with less Emergency Room visit, less days of hospitalization and fewer claims

  • Better Healthcare Effectiveness Data and Information Set (HEDIS) scores and increase in Risk Adjustment Factor (RAF) scores for Chaparral

"We are pleased to sign a three year contract with Diagnos, said Dr Prasad, diabetes specialist, President and Medical Director of Chaparral Medical Group. With a retinal scan, we can identify cases of diabetes by having an eye exam 10 years before the complications arise. And if detected early, we can treat it and reduce the incidence of blindness." With the Computer Assisted Retinal Analysis (CARA) Platform, Diagnos is also playing a key role in our Diabetic Champion Program. With it, we can quickly screen our large community of diabetic patients for any signs of diabetic retinopathy. Chaparral is a proud award recipient of "The American Diabetes Association and National Committee for Quality Assurance" Achievement of Recognition for delivery of Quality Diabetes Care. ...

... click here for full copy from source



The CARA Platform is currently being utilized in multiple countries & gaining momentum.

The Company's retinal analysis business was incepted in the wake of the downturn in the mining sector a few years back, DIAGNOS was focused on data analysis in that sector and made the decision to springboard off its platform and expertise in artificial intelligence to build the application it has now in order to fill the gap between doctors and specialists. ~Four years ago the Company launched with zero clients, proved its concept in 2015 and 2016, and is in 12 countries with pharmaceutical companies today (10 countries with Novartis). DIAGNOS just became operational with wellness programs in three new countries (Nigeria, Kenya, and Malaysia) this November-2016.


Besides Novartis and Bayer investing increasingly more capital towards DIAGNOS, the contacts and introductions that have been made by pharmaceutical companies in all those countries to date have themselves created a flurry of new interest in DIAGNOS that is expected to translate to additional opportunity for the Company to expand and gain additional momentum.


Once DIAGNOS is in a country it gets introduced to all the government departments, hospitals, and clinics; DIAGNOS develops its own contact with them. DIAGNOS is now in a position to rely on larger monthly revenues. The Latin America market is one of the largest market for this kind of automated analysis of medical images.


Saving vision by reducing congestion at specialists


DIAGNOS sells an automated system to screen patients for eye diseases. Its system takes a pictures of a person's eyes, and then uses an artificial intelligence image-recognition algorithm to assess the patient's risk of over 20 eye diseases. If it detects a risk, it refers the patient to a retinal specialist doctor, who prescribes the appropriate medication or treatment. Because the images can be sent over the internet, the doctor can be in a different physical location confirming the diagnostic.

The diseases targeted by the algorithm include the leading causes of blindness among adults, such as diabetic retinopathy and aged-muscular degeneration. According to the World Health Organization, 347 million people have diabetes worldwide (many experts believe that number is low and actually closer to 500M), of that number 0.1% of people with diabetes will lose their vision completely per year if not screened, that translates to 347,000 people per year that will go blind from a curable disease if they are not screened. These diseases are treatable with existing medicine but only if caught in the early stage. However, people at risk are not getting their eyes checked regularly, and therefore going blind unnecessarily, for the following reasons:


A). There is a shortage of retina specialist doctors. There are just ~1,800 retina specialists in the US versus ~42 million diabetics. Clinical guidelines suggest that every diabetic be screened for diabetic retinopathy once a year, obviously impractical for such a large number to be screened under traditional methods by so few specialists. In less developed countries the ratio of specialists to diabetic population is even worse compared to the US and Canada. By using an algorithm to screen patients, DIAGNOS ensures that only those at risk see a doctor, which relieves congestion in the healthcare system, while improving access to healthcare.


B). Seeing a doctor is expensive. Retina specialists can charge $300 per visit, but DIAGNOS' software driven procedure charges out at only say ~$20 per visit, and this fee can be paid by the pharmaceutical company rather than the patient.


C). Seeing a doctor is inconvenient. Retina specialists tend to be located in urban areas, and therefore may be inaccessible for rural populations. However, DIAGNOS' system could be installed in Primary Care Facilities, or stores such as Walgreens and Wal-Mart, which are beginning to provide low-cost healthcare services, further improving access to basic healthcare. Theranos Inc., an American privately held health technology company which developed a simple blood test that could be deployed in a similar manner, had signed a partnership agreement with Walgreens and ramped up to ~$9 billion valuation (Theranos has since had tech issues and pulled back, unlike Theranos tough DIAGNOS' technology has been able to withstand rigorous vetting). Often there is also a general lack of advertising targeting diabetics as to where they can be tested. Additionally, specialists in some countries are caped by quotas.


Diabetic Retinopathy is a Treatable Disease

  • Early detection and treatment can prevent 85% to 95% of blindness cases.

  • The patient may experience no symptoms until the condition is severe.

  • People who are unscreened are more likely to:
           - Present in the ER.
           - Become blind.
           - Have other complications.

  • People who are screened tend to take better care of their diabetes.


The Solution: Early screening using artificial intelligence software

DIAGNOS' Computer Assisted Retinal Analysis (CARA) Platform - DIAGNOS already has FDA approval as a medical device. The DIAGNOS solution fills the gap between the doctors and the specialist. Making the general practitioner able to manage vision lost for all diabetic patients by having access to this technology.


Regulatory Compliance:

ISO 9001:2008 Certified
ISO 13485:2003 Certified
Canadian Medical Devices Conformity Assessment System Certified
Health Canada Approved - Class 2 Medical Device
FDA Approved - Class 2 Medical Device
CE Mark Approved

Fig. 4 CARA screening.


DIAGNOS' test is painless and quick, generally taking 2 - 3 minutes maximum, its one flash, the company takes the original image and enhances it to make it easier to read and then the algorithms do the interpretation.


Having artificial intelligence in the loop to take care of a very demanding interpretation task that requires a high degree of proficiency, consistency, and accuracy 24/7 is a great benefit to specialists. DIAGNOS' software can operate at the same high level all day long, where as traditional methods rely upon alertness of humans.


Automatic Detection and Triage

DIAGNOS' algorithms are capable of:
     • Automatic detection of pathology in retinal photographs.
     • Lesion classification.
     • Pre-triaging patients in order of severity.


Figure 5 (above) Automated triage can help reduce healthcare labor requirements while increasing patient access to quality care and reducing healthcare expenditure.


DIAGNOS ends its patient screening session by returning to the patient a copy of the image of their own eye, either by email, or smart phone, or a printed copy. That way they can see inside their own eyes, it makes an impression on the client to be more conscientious of their health. From the patient's perspective screening gives a visual representation of how well someone is managing their diabetes, leading to increased awareness, and increased compliance with diabetes management.



Because people are not being screened regularly, they are losing their vision unnecessarily. This is also a problem for pharmaceutical companies, since they are missing out on drug sales. It is estimated that only 30% of people at risk have their eyes checked on an annual basis. Increasing that rate to 90% would triple the drug sales, while reducing the number of individuals who go blind by 85%. This creates a win-win situation for patients and drug companies. The pharmaceutical companies pay DIAGNOS to screen people, but make their money back through higher sales of their patented drugs.

Value Propositions:



• Convenient non-invasive test.
• Trip to specialist only if necessary.

------ ------ ------ ------ ------ ------

Diabetologist/ GP / Endo

• Higher patient compliance.
• Additional pertinent patient information.


DIAGNOS is aiming to target hospitals and clinics. Putting a camera in a clinic with say 12 doctors operating out of it makes sense; it would allow the doctors to get results on the spot and provide a higher level of care for their patients.

------ ------ ------ ------ ------ ------

Retina Specialist

• Increased focus on treatable cases.
• Increased revenue.


DIAGNOS does not compete with specialist as the Company's algos do not diagnose, they flag patients most at risk with indicators to see the specialist.

------ ------ ------ ------ ------ ------

Pharmaceutical Company

• Increased drug sales volume.


Novartis' main Dibetic Retinopathy drug is Lucentis, Bayer's is EYLEA, specialists inject the drug into the eye. The relationship DIAGNOS has had with Pharma has been developing over the last 2 - 3 years but has only now begun to bloom.

[Note: In Canada the drug companies charge ~C$1,800 for a dose, and once a patient gets under the drug its 4 to 7 times per year and treatment averages for ~4 years.]

------ ------ ------ ------ ------ ------

Insurance Company

• Increased patient compliance.
• Decreased health plan expenditure.

------ ------ ------ ------ ------ ------




• Significant cost avoidance mid/long term.
• Positive political optics.


The old saying "A stitch in time saves nine" rings true. The cost of managing diabetic populations that have not been getting screened properly is exploding. In the case of Mexico, for example, ~7 years ago diabetics took up ~6% of the country's medical budget, now it is ~27% of their medical budget. Fact is, there is not enough money and it is endangering the quality of patient care. Health Services is the largest ministry in Mexico, they take care of >8M diabetics.


DIAGNOS has spreadsheets with analysts in the US, at Medicaid and Medicare, that show the savings simply from preventing diabetics going blind, forget everything else that DIAGNOS can help combat, the Company can save in the state of Florida alone over $6 billion over the next 20 years (Note: DIAGNOS is in proposal stage with Florida at the moment). It is expected that in 2018 Medicaid and Medicare will be establishing new guidelines for screening and are expected to be spending substantial amounts on screening programs. Government involvement with DIAGNOS is the big prize for shareholders; when key news is announced, we anticipate it will act as a major catalyst that will supplant all current projections and cause a dramatic upside revaluation in share price, well above what is being discussed here today.

------ ------ ------ ------ ------ ------

Additional value propositions stem from interaction with a largely uneducated market; retina screening can be used as an opportunity to educate, important since less than 10% of people diagnosed with diabetes are given diabetes self-management training.

Medical Software Has the Mechanics of a Great Business

When mature, DIAGNOS promises to provide investors with a steady stream of recurring revenues, with minimal maintenance capex requirements, three hallmarks of a robust business. The revenues are recurring since people must have their eyes checked annually. Those at risk, such as diabetics and seniors, are stuck with their condition for the rest of their lives, which means decades of repeat sales for DIAGNOS. The sales are reliable because healthcare providers rarely change application software once it becomes ingrained in the system, due to high switching costs. Another strength of DIAGNOS' business model it is scalable and a low marginal cost of growth, a feature common to other application software companies. Since the software is developed upfront, the marginal cost of growth is miniscule, allowing the additional revenue to fall to the bottom line.
Sunny Macro Supports DIAGNOS

A number of macro tailwinds support the technology's adoption. The diabetic population is growing at 10% to 12% per year. The population of seniors and diabetics, two demographics at risk of blindness-causing eye diseases, continue to grow. These two demographics also vote, which incentivizes politicians to see the technology adopted.  Companies such as Walgreens and Wal-Mart are looking to offer low-cost healthcare services in their stores, which could be the perfect location for a DIAGNOS' system.

With the number of seniors in the world expected to hit one billion by the end of the decade, charging each $10 to scan the eyes of every senior means the market will be worth $10 billion per year. DIAGNOS generated annualized sales of less than $1 million last year, meaning less than 0.01% of the market has been penetrated. But the company is growing sales at 300% per year, and the rate of test per month is increasing, as shown in the table below.

Company growth on a test basis


Table 1. (Below) Patient tests month over month. Source: Company disclosures.

Note the recent dramatic increases in patient tests month over month; it took a while but all those Pharma pilots are now converting to contracts and growing fast. Expected to increase to between 60,000 - 70,000 patients per month in 2017, tippling its monthly rate from 2016.

NOTE: NONE OF THE BELOW FINANCIAL PROJECTIONS INVOLVE CARDIOVASCULAR MARKET POTENTIAL (the projections are based on early detection in Diabetes market only).

Company growth this fiscal year


Table 2. (Below) Revenue 2017 fiscal year. Source: Company disclosures.


The quarterly sales growth rate has increased from the past three quarters. Furthermore, DIAGNOS recently signed a contract with an unnamed pharmaceutical company targeting the US, the world's largest healthcare market. The company also signed its first government contract in Mexico and is looking at Latin America as a large potential market. This suggests the company's sales could be hitting an inflection point, which could see its congestion-relieving software gain the critical mass to be globally adopted.


[*FYI: CARDS stands for 'Computer Aided Resources Detection System', CARDS revenue comes from the remnants of DIAGNOS' mining data analysis business which it is phasing out.]


Company growth year over year including 2018 forecast


Table 3. (Below) Revenue 2015 - 2018. Source: Company disclosures. 


DIAGNOS' fiscal year end is in March. DIAGNOS believes it will hit at least $6.6M in CARA revenue for next year, that is a conservative low figure, as depending on what it does in this Q4 the revenues for next year could very easily become $10M or $12M. The growth curve is NOT going to stop as the diabetic population keeps growing and DIAGNOS is so effective at early screening it is quickly now developing a reputation as the best option out there.


NOTE: Right now Bayer is going to be doing a pilot in Canada with DIAGNOS starting in January 2017, they are going to pay DIAGNOS to screen a small population of diabetics to see if what has been observed in other parts of the world are occurring in Canada too. DIAGNOS is confident the results are going to be the same. DIAGNOS currently has a program running with Bayer in Columbia right now. What happens with Bayer is not reflected in the financial projections, however if what occurred with Novatris' pilots is any indication of what to expect then 2018 projections will have yet another revision upwards.


------ ------ ------ ------ ------ ------


Qualitative Points that Support DIAGNOS' Business

While DIAGNOS has a disruptive healthcare technology that looks poised to become a robust business, valuing the Company at such an early stage of adoption for its technology and business model is challenging, especially with the Company only this fiscal Q3 (ending December-2016) demonstrating a turn to profitability. An analysis of qualitative factors provides further support that the shares are due for significant upward revaluation:

1. FDA approval and growing sales to Pharmaceutical imply the technology is effective.

The fact that the FDA has approved the product, and Novartis + Bayer are paying to use it (and are upping their capital investments), confirms that it works.

2. Smart money investors already own a large block of the shares.

Management and friendly shareholders (including Dundee: ~18%, Renauld Family: ~8%, Investment partners NJ: ~8%) own more than 40% of the outstanding shares.

3. No competitors have contracts with pharmaceutical companies and governments.

While some other companies are developing similar software systems, DIAGNOS is the first-to-market and the only one to have a contract with a major pharmaceutical companies and government. The presence of competitors can actually help the adoption of the technology, as other firms will share the cost of developing the market. Since buyers would compare systems anyways, competitors could prove to be advantageous for DIAGNOS.


Note: Competitors have not managed to do what DIAGNOS can do. For example in the US only one other competitor has FDA approval on part of their platform, but they don't have any algorithms to automatically detect the lesions on the retinas (that artificial intelligence is the important piece).

4. First solution for government cost control over diabetes.

By providing an economic model that demonstrates clearly the saving of wellness program or prevention programs, to insure patients don’t go blind and carry the expensive treatment that follows. DIAGNOS has put together the first economic model to help governments curve the cost burden of diabetes.


In contrast to some other names in the healthcare sector, DIAGNOS' management has been more interested in running the business than promoting the stock. With the Company's turn to profitability closing out 2016 and a ramp-up of patient tests on tap, more attention is headed the Company's way, and we expect management will dedicate more resources on responsibly relaying its story to potential investors.

As the company continues to penetrate the >$10Billion dollar market and revenue explodes to the upside, the company will undoubtedly attract more attention from the Pharma companies that sell into that market. ADK.V could be a great tuck-in acquisition for large Pharma companies already selling into the market. Earlier this year, Welch Allyn, an American medical device maker, bought a competitor to DIAGNOS for an undisclosed sum. The acquired company, called Hubble Telemedical, was developing a similar software, but Hubble was a few years behind DIAGNOS (the clear advantage ADK.V has over competition is its proprietary artificial intelligence algorithms).


------ ------ ------ ------ ------ ------

DIAGNOS Inc. now tackling Cardiovascular Disease:

Fig. 6 Eyes tell volumes about cardio vascular health.

DIAGNOS' R&D team is focused on innovation and evolving the platform.


DIAGNOS has developed and is refining a new application that will evaluate the risk of cardiovascular issues using the same images as for the retina evaluation.


Future - Cardiovascular: DIAGNOS is refining a new application that will evaluate the risk of cardiovascular issues using the same images as for the retina evaluation. The company is focusing on using its technology to help general doctors in the world by providing real technology tools based on its artificial intelligence platform. Cardiovascular issues are affecting most of the population worldwide. The total market size is $386 billions per year (Heidenreich, et al., 2012) for drugs and services related to Cardiovascular Disease and stroke.


[FYI: Already 10% of the market for DIAGNOS that is screened now are people that are at risk of being diabetic mainly because they have high blood pressure. If you have high blood pressure and are 60 years old and over, then you are at risk of developing retinopathy.]


Excerpt of September 19, 2017 Company news release:


DIAGNOS Provides Timelines on Cardiovascular Disease (CVD) Prevention Test Development and Commercialization Plans

Cardiovascular Artery Disease (CAD) prevention score development six to twelve months ahead of schedule; commercial launch in first half of 2018

BROSSARD, QUEBEC--(Marketwired - Sept. 19, 2017) - DIAGNOS Inc. ("DIAGNOS" or "the Corporation") (TSX VENTURE:ADK)(OTCQB:DGNOF), a leader in early detection of critical health issues through the use of its FLAIRE platform based on Artificial Intelligence (AI), announces today a development of new cardiovascular risk score, that will enable the early detection of this critical disease by its CARA platform.

The calibration of our application will be done simultaneously in 4 countries with a minimum of 1,000 in each country with the support of 22 cardiologists. This will enable us to insure the sustainability of our solution worldwide. The partners that will be collaborating with DIAGNOS are in Algeria, Canada, Mexico and United States.

"We're at the final development stage and ready to evaluate the effectiveness of our automatic grading for the new risk score test CARA Cardio. Continually, we hear from physicians and health insurers that our screening tests are very much needed to detect at early stage the cardiovascular anomalies. Our preventive cardiovascular risk score test will be used to prospectively predict and monitor the cardiovascular artery diseases. Diagnos' AI will automatically grade the retinal microcirculation state to generate this score. At regular interval, we will monitor the patients using the same test" said Dr Hadi Chakor, Diagnos Chief Medical Officer. "Our test will precede painful and stressing invasive procedure that may cause costly late complication."

While coronary angiography remains the gold standard to confirm the presence and severity of coronary atherosclerosis, issues of accessibility and cost-effectiveness of the procedure have spurred the need to investigate novel imaging modalities. Diagnos' Cardio prevention test is based on existing studies (Atherosclerosis Risk in Communities Study ''ARIC'' (Circulation 2016), The Rotterdam Study (Neurology. 2006), The Beaver Dam Eye Study. (Ophthalmology, 2012), multi-ethnic study of atherosclerosis (Hypertension, 2008) et al…) that have demonstrated an anatomical correlation between the coronary macro-vascular supply and the micro-vascular blood supply to the retina. Theses anomalies are strongly associated with cardiovascular risk factors such: as dyslipidemia, diabetes, smoking hypertension and a positive family history of premature CAD.

We are expecting to complete this final step of test development process during the next 6 months. In using our CARA telemedicine platform, we've shorten our go to market timeline by 12 months.

"Our test will address one of the more pressing needs in cardiology and preventive medicine field to decrease the socioeconomic burden and complication cost of this pathology. This approach should complement public actions to reduce community risk factor levels and promote a healthy lifestyle. The simplicity and costly effectiveness makes this score test with very promising future to predict cardiovascular disease. The market size and cost associated with CVD & stroke yearly is $386 billions per year (Heidenreich, et al., 2012." said André Larente, CEO, Diagnos.

About CARA

CARA is a tele-ophthalmology platform that integrates with existing equipment (hardware and software) and processes at the point of care (POC) and comprises: image upload, image enhancement automated pre-screening, grading by a specialist, and referral to a specialist. CARA's Artificial Intelligence, based on FLAIRE technology, image enhancement algorithms make standard retinal images sharper, clearer, and easier to read. CARA is accessible securely over the internet, and is compatible with all recognized image formats and brands of fundus cameras, and is EMR compatible. CARA is a cost-effective tool for screening large numbers of patients, in real time and has been approved by regulatory authorities including Health Canada, US Food and Drug Administration, the European Union and others. ...

...Click here for full copy from source


Valuation Points to $1.00/share -- based on nominal adoption technology for diabetes detection alone.

The combination of variables we could input on assumptions are infinitesimal in projections, however simply extrapolating conservatively off of contracts in hand, continuation of current growth penetration rates Y/Y, rate of conversions, the fact revenues are expected to conservatively hit an annualized rate of $6.8 million next year, and assuming a continuation of straight-line adoption (it actually appears that ADK.V is way early in the adoption curve and the curve is more likely to be parabolic or hyperbolic), we project the following minimums:

Straight-line adoption:

Total Market: $10B $11B $12B $13B $14B
Year-end Mar. 31: 2017 2018 2019 2020 2021
Share of market: 0.035% 0.063% 0.115% 0.23% .28%
Revenue for ADK: $3.5 M $7 M $18M $30M $40M
Net Profit : $,7 M $1.4M $3.6M $6.0M $8.0M
Value Share Target Price (minimum): $.20 $.40 $.60 $1.00 $1.33


Parabolic/hyperbolic adoption (as is more likely the case) will yield significantly higher numbers. With a disruptive technology targeting a >$10 billion+ market, a robust business model, and attractive macro and qualitative factors, ADK.V is a hidden gem at its current trading price. Based on forward discounting metrics a share price closer to 50 cents Canadian in the near-term for ADK.V is appropriate.

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Below is expanded insight on DIAGNOS Inc. and its technology.


     Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer

*Projections, estimates, and assumptions herein are based on journalistic opinion, not Company guidance.



Recent Company news of significance


• September 26, 2017 "DIAGNOS Announces DTC Eligibility of its Common Shares in the US".


• September 19, 2017 "DIAGNOS Provides Timelines on Cardiovascular Disease (CVD) Prevention Test Development and Commercialization Plans".


• August 28, 2017 "DIAGNOS Announces Restatement of March 31, 2017 Financial Statements which Resulted in a Decrease in Expenses of $2,491,096".


• August 22, 2017 "DIAGNOS Announces 2 screening clinics with Al Kahhal Medical Complex in the Kingdom of Saudi Arabia".


• August 14, 2017 "DIAGNOS Announces Results from the Annual Meeting of Shareholders, Appointments of new Chairman and new Chief Medical Officer and Stock Options Grant".


• July 17, 2017 "DIAGNOS signs new contract valued at $ 4.16 Million USD (5.26 Million CAD) with the Government of Mexico at ISSSTE to screen and monitor 320,000 diabetics in 2017 further to a successful pilot program".


• July 5, 2017 "DIAGNOS Announces Successful Pilot at Chaparral Medical Group in California and a 3 Year Contract with the Opening of a Second Eye Screening Clinic"


• June 27, 2017 "DIAGNOS Receives Approval for Trading on the OTCQB Venture Market".


• May 31, 2017 "DIAGNOS Announces its New Mission in Healthcare after its Divestiture from the Mining Industry".


• May 17, 2017 "DIAGNOS Acquires Interest in Majescor Resources Inc.".


• April 24, 2017 "DIAGNOS Announces new partnership in Bangladesh with 'Eyes for All'".


• April 13, 2017 "DIAGNOS Announces Private Placement".


• March 15, 2017 "DIAGNOS, in a strategic move, is divesting its Mining Division to focus on detection of critical health issues through the use of its Artificial Intelligence platform".


• February 22, 2017 "DIAGNOS Announces a Contract in the Kingdom of Saudi Arabia with AlKanhoor medical Co".


• February 14, 2017 "DIAGNOS announces contract extension with the Mexican government and an update for a two-year potential national coverage program".


• January 25, 2017 "Nippon Dragon Resources will use DIAGNOS' Artificial Intelligence tools to optimize exploration of its Rocmec1 and Denain properties".


• January 24, 2017 "DIAGNOS Successfully Completes a 2,000 Patient Pilot Project for the Mexican Social Security Institute".


• January 11, 2017 "DIAGNOS Appoints New Director - Mr. Georges Hebert".


• January 10, 2017 "DIAGNOS Announces an update on an Artificial Intelligence Digital Healthcare Solution contract with ISSSTE, an organization of the Mexican Government".


• December 21, 2016 "Monarques Gold Corp. will use DIAGNOS Artificial Intelligence tools to optimize exploration of Croinor Gold".


• December 13, 2016 "DIAGNOS Successfully Passed ISO Certification Surveillance Audit".


• December 6, 2016 "BAYER Canada and DIAGNOS join efforts against Diabetes".


• November 28, 2016 "DIAGNOS Appoints New Director-Dr. Netan Choudhry".


• November 21, 2016 "DIAGNOS sells a purchase option".


• November 14, 2016 "DIAGNOS Announces a Pilot Project with the National Social Security System of Mexico".   


• October 25, 2016 "DIAGNOS Announces a New Pilot Contract in the South East Asia Region".   


• October 18, 2016 "DIAGNOS announces two new pilot projects contracts in North Africa".   


...Click here to view more news releases from source

Diabetes Medications are currently worth nearly $60B Billion Globally

The market for diabetes drugs will continue to grow quickly. Globally, drug sales have increased between $4 and $5 billion a year for the last several years, and is projected to increase long those lines for years to come.


March 2014 figures for anti-diabetic revenue:


Anti-diabetic medications make up a large proportion of pharmaceutical sales around the world, and are the second-largest prescription drug class in the U.S.


Screening a diabetic population for diabetic retinopathy catches people who need treatment for the disease creating a larger demand for drugs to treat the disease and creates more compliant patients, leading to a larger demand for other diabetes medications.
Screening approach

Telemedicine / Referral Pathway


(Computer Assisted Retinal Analysis)

• Tele-ophthalmology platform.

• Integrates with almost any camera.

• Comprises image upload, automated pre-screening, grading and referral interface.

• Modules extend functionality:
     - Enhancement.
     - Automated pre-Analysis (DR).
     - Automated pre-Analysis (other).



Figure 7. (Left) Elements of a Screening Session


Telemedicine platform that is


• Compatible with any camera.

• Any number on imaging fields.

• Mydriaticor non-mydriatic.

• An easy to use, secure web interface.

• Comprised of:

  • Image-enhancement software.

  • Algorithms that are capable of automatically detecting and triaging diabetic retinopathy (and other diseases).

• Constantly updated.

• EMR compatible.

• Wholly owned by DIAGNOS.


• Customizable to clients’ needs.



Figure 8 & 9. (right)

8) Viewing results on a tablet

9) A screening session in progress

Enhancement of Challenging Images


Figure 10. Original (Cataract) vs DIAGNOS Enhanced -- Images entered into the CARA platform are automatically enhanced using proprietary algorithms. According to a study done by McGill University Health Center, DIAGNOS’ image enhancement rescues 50% of unreadable images.
Example 1.: A healthy eye -- No Presence of Diabetic Retinopathy...


Figure 11. (above) Healthy vs DIAGNOS Enhanced -- The retina (back of the eye) shows normal surface, blood vessels, and optic nerve. No abnormalities are present.
Example 2.: Mild Diabetic Retinopathy....


Figure 12. (above) Mild Diabetic Retinopathy vs DIAGNOS Enhanced -- The retina shows early signs of disease (usually affects both eyes). Retinopathy may indicate that damage has started to occur in other organs. During early stages doctors may adjust medication and recommend lifestyle changes.
Example 3. Severe Diabetic Retinopathy...


Figure 13. (above) Severe Diabetic Retinopathy vs. DIAGNOS Enhanced -- Severe Diabetic Retinopathy may lead to blindness and may or may not have symptoms. It is very important to see a retina specialist as soon as possible to discuss treatment options. The earlier the treatment is started, the better the outcome.

------ ------ ------ ------ ------ ------ 


Through wellness clinics DIAGNOS runs its 'Beat it in a Blink!'  program for the prevention of Diabetic Retinopathy.
Deployment Options

DIAGNOS Inc. is flexible with regards to its screening model and location:


 Mobile ($$$$)

(Software + Equipment + Technician + Van)

See pictures (Fig. 14) further below of mobile deployment option in operation in India.

Managed ($$$)

(Software + Equipment + Technician)

The 'managed environment' option is what DIAGNOS is providing for governments right now.

Standalone ($$)

(Software + Equipment)

This option is what DIAGNOS is targeting for the USA; the Company wants to go into the primary care facility, install a camera, train the nurses on how to take the pictures, and then leave.

Software only ($)


This is the deployment option that DIAGNOS would like to end up at in five years, with others/partners carrying the operating costs and the Company acting as a centralized world-wide database/processing center to send images to, anywhere on the planet. Already all images go to DIAGNOS' servers in Montreal (a secure state-of-the-art facility). The economics make sense for DIAGNOS to want to take a smaller cut of the overall transaction in consideration for it not having the burden of operating expenses, and simply let its software do the value added high-margin work in volume.


DIAGNOS is willing to invest in infrastructure (local offices, local employees, cameras, vans, etc.) when there is ample interest within a given location.

The following are examples of DIAGNOS' mobile deployment currently in operation:



Figure 14 (Left) Mobile deployment in India -- The vans to the left belong to DIAGNOS and the photos seen are of operations in India. If you look closely you will see the partner is Novartis written on the van, they pay a portion of the van and of course a fee per patient test. DIAGNOS arranges to be in front of a hospital in the morning and will have 200 or so people lined up for screening. Over there that is sometimes the only way to function as there is often no physical space inside the hospitals. DIAGNOS has been operating in India for ~a year now.


Excerpts from letters of recommendation:


We are involved in many events in our community aimed at helping our diabetic population live healthier lives, and it is in this context that we have engaged DIAGNOS Inc. ... We invited DIAGNOS to run a screening booth at the Feria and it was a resounding success. ... We are extremely satisfied with DIAGNOS, CARA, and the medical network they make available to our population and definitely plan on using their services in the near future.

Source: American Diabetes association


With DIAGNOS’ CARA screening we were able to know which patients are at risk, counsel them effectively with the aid of DIAGNOS’ reports, and were able to make a positive difference in the patients lives. ... We look forward to DIAGNOS expanding their services in the UAE, and hope to have the service available in Ajman soon

Source: United Arab Emirates Ministry of Health



Pharma - DIAGNOS Inc. offers turn key wellness programs to increase their revenues.

  • Novartis India, Novartis UAE, Novartis Argentina, Novartis Poland, Novartis Mexico, Novartis Turkey

  • Bayer Colombia (first contract)

  • Regeneron (USA)

  • Genentech (USA)

  • others

Prospects and operations:
•Novartis Saudi, Novartis Japan, Spain, Egypt, Qatar, Kuwait, Nigeria, Kenya, and Malaysia (different closing state)
•Bayer (Latin America, Europe, Canada)
•Sanofi (prospect state close to proposal)
•Novo Nordisk (proposal state)
•Mexico (ISSTE  IMSS and Seguro Popular)
•State of Florida (proposal state)
•Alger (proposal state)



DIAGNOS Inc.'s Governance and Management  Skip to top


ADK.V's board of directors and management team has a well rounded combination of people that each contribute expertise in disciplines necessary for a successful organization:


André Larente, President, CEO, and Director

Mr Larente has been active in the information technology sector for more than 26 years. He has previously held leading management positions with companies such as Siemens, Syscan International, Newbridge Networks, Legent Corporation, Cognos, Tandem Computers and Honeywell Information Systems. His extensive business contacts and experience in the information technology sector, have enabled him to position DIAGNOS for rapid growth.


Georges Hebert, Chairman, and Director

Mr. Hébert brings a wealth of experience in governance of public and private companies. He was a director at the Laurentian Bank, where he served for twenty years as a member of the Audit committee. He was also a director of Vitran Corp for seven years, where he served as a member of the Audit committee and chairman of the Compensation committee. He is currently president of Prosys-Tec Inc. and a director of Cubeler Inc., a private Fintech company.

Jean-Yves Thérien, Director

Mr. Thérien holds a Bachelor degree in Administration (specialized in finances) from l'UQAM. He has worked for 18 years as financial advisor for multiple brokerage Companies. Jean-Yves was Vice President of the Diabetes Association of Laval/Laurentide from January 1995 – April 1999 and also President of the corporate finance campaign from January 1997-January 1999. The city of Laval, Quebec is the third largest city in the province of Quebec. His team spirit, entrepreneurship, perseverance and dynamism allow Nippon Dragon to establish a niche in the industry and to exploit markets never developed before.


Tristram Coffin, Director

Mr. Coffin has been active in the optical industry since the last 40 years and sits on many advisory committees. He was admitted to the Order of Dispensing Opticians in 1963. Mr. Coffin operates one of Canada’s most prestigious optical operations located in Montreal, Quebec. Mr. Coffin also acts as special advisor and licensee to U.S. Vision in the Province of Quebec. Early in his career, he worked in the brokerage business and helped bring numerous companies public.


Netan Choudhrys, Director

Dr. Choudhry is an internationally recognized Vitreorenal Surgeon with affiliations at both the University of Toronto and Harvard Medical School. He is universally recognized as a thought leader in retinal imaging and the diagnosis and treatment of rare disorders of the retina and vitreous. Dr. Choudhry was the first to pioneer OCT imaging of the peripheral retina and is actively developing novel devices for imaging the retina and vitreous using non-invasive technology. He has published in the world's most read/indexed journals including: The New England Journal of Medicine, the Lancet, Ophthalmology and the Retina Journal. Dr. Choudhry's innovative work in the field of retina has also been published on the covers of numerous journals further earning him the distinction of a pioneer in retinal imaging. Dr. Choudhry is actively involved in medical education at the University of Toronto Department of Ophthalmology & Visual Sciences and he is also a faculty member for the Massachusetts Eye & Ear Infirmary Harvard Medical School Annual Vitreoretinal Surgery Fellows course. Dr. Choudhry has been an invited speaker at over 75 international conferences and symposia. He has published several book chapters in retinal medicine and wide-field imaging. Dr. Choudhry has also received research grants to investigate: Diabetic retinopathy, Age-Related Macular Degeneration, Macular holes/puckers and uncommon conditions such as Retinitis Pigmentosa and Macular telegiectasia.


Marc-André Massue, Vice-President / Finance

Mr Massue joined the team in May 2008. He has more than 15 years of financial and human resources management experience, acquired mainly with technology companies. Mr Massue’s main responsibilities include the preparation of the annual and quarterly reports, the preparation of investment tax credits claims and the development and monitoring of internal management policies. Mr Massue received a Bachelor in Business Administration (BBA) from HEC Montréal, and a Diploma in Economics from the Université de Montréal. Mr Massue is a member of the Quebec Order of Chartered Accountants.



Note: This list is not intended to be a complete overview of DIAGNOS Inc. or a complete listing of DIAGNOS Inc.'s projects. Technology MarketWatch urges the reader to contact the subject company and has identified the following sources for information:


For more information contact DIAGNOS Inc.'s head office at: Ph (450).678-8882


Company's web site:   SEDAR Filings: URL



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