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Valuation Commentary: DIAGNOS Inc. (TSX-V: ADK) (OTCQB: DGNOF) (Frankfurt: 4D4) is a Canadian-based medical software technology company that pioneered 'Computer Assisted Retinal Analysis' (CARA), which automatically analyses the retina (located at the back of the eye) using machine learning / artificial intelligence (AI) technology to identify damage caused by diabetes and cardiovascular issues. For the last 7 years DIAGNOS has commercially advanced its first large-scale application of the technology, primarily aimed at preventing diabetic retinopathy. Entering 2022 marks a pivotal time for DIAGNOS as the technology has recently seen several large players in the eyecare sector and medical field commit to large-scale roll-outs, this is putting pressure on others in the sector to consider a similar move and not be left behind. DIAGNOS' technology essentially transforms eyecare centers into Point of Care and wellness diagnostic centers as the CARA platform also is expected to commercially launch several other large-scale applications, including an application for hypertensive retinopathy (launch imminent) and one for stroke prediction (to begin clinical trials on December 6, 2021 in USA). Complicated medical conditions resulting from diabetes, high blood pressure, and potential stroke can be detected by DIAGNOS' algorithms able to interpret detailed imagery of the retina. Since New Look (with 407 locations in Canada) signed on for CARA platform roll-out DIAGNOS' phone has been ringing from around the globe, essentially other industry participants do not want to miss out on a technology whose time has come. Look for an increase in new business announcements to come from the DIAGNOS over the coming months and years. In fact, Essilor Luxottica (Euronext Paris Stock exchange: EL), the largest eyecare company in the world, with EUR$16+ Billion in revenue/annum and ~18,000 locations, signed a MOU with DIAGNOS in August-2021 and is in active negotiations on terms -- this alone has massive latent catalyst potential for upside share price revaluation of ADK.V as details emerge. Specifically DIAGNOS and Essilor are currently negotiating 3 things; 1) contract for the existing platform, 2) Essilor wants DIAGNOS to do a specific development for their line of fundus camera, and 3) Essilor wants access to future applications DIAGNOS will roll out. The fact the largest eyecare company in the world chose DIAGNOS' technology speaks volumes as to where this is headed.
With all the activity DIAGNOS has on the go it appears a low-risk high-reward proposition: ADK.V only has 69.47 million shares outstanding, there are very little warrants left, and insiders & family office own ~40% of the outstanding shares. DIAGNOS has money in the bank, an untapped C$2 million government credit line if needed, has a high-margin SaaS model (it only costs ~4 cents to process an image that it charges between ~C$5 - $10), is expected to be cash flow positive (based on solid contracts) by June-2022, has numerous new business prospects in discussion now, and is expected to see rapid revenue growth. Astute investors connecting the dots about what is unfolding are apt to do well by establishing a long position in ADK.V now.
DIAGNOS Inc. received its first institutional coverage from the independent investment bank / advisory / equity research firm Echelon Capital Markets, its current rating is 'Top Pick', 'Speculative BUY' with a near-term (12 month) target price per common share of DIAGNOS of $1.55 Canadian (or in US dollars: USD$1.23 or in Euros: 1.09) -- click here to view full copy of their latest (January 4, 2022) report. The original initiating report was exceptionally thorough (~40 pages), the analyst contacted multiple industry participants, and recently (November-2021) sat down for an interview [running time 32 min. Youtube] on his reasoning for making it a top pick entering 2022. Note, the analyst share price target is based on the DIAGNOS CARA Platform that is currently in use and does not include progress on the Stroke Predictor application that is the subject of clinical trial news needless to say a much higher share price target is justified if success in the Stroke Predictor clinical trial is demonstrated.
Click to view Analyst update report [PDF] C$1.55/sh. price target
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Recent Company news of significance
March 29, 2022 "DIAGNOS Announces Closing of Private Placement and New Marketing Director".
March 1, 2022 "DIAGNOS Announces Closing of Private Placement".
February 10, 2022 "DIAGNOS Successfully Completes ISO / MDSAP Audit".
January 26, 2022 "DIAGNOS Provides Corporate Update for 2021 and Outlook for 2022".
October 28, 2021 "DIAGNOS Delivers World Class Results in the MICCAI2021 Contest: GAMMA".
September 16, 2021 "DIAGNOS Announces a Multi-Year Contract with Juarez Health & Medical Tourism Cluster".
September 14, 2021 "DIAGNOS Announces a 3-Year Contract with Cielo Vista Eye Clinic in Mexico".
September 10, 2021 "DIAGNOS Announces Voting Results of Annual Meeting of Shareholders".
August 16, 2021 "DIAGNOS signs Memorandum of Understanding with Essilor International".
July 28, 2021 "DIAGNOS Announces a Pilot with Opticalia in Spain".
June 15, 2021 "DIAGNOS Announces a Pilot with Hospital Oftalmolσgico Buena Vista Sinaloa".
March 9, 2021 "DIAGNOS, following a successful Proof-of-Concept (POC) pilot study, is finalising its new application CARA-STROKE to address Stroke prevention and management, a market estimated at $36 Billion".
February 26, 2021 "DIAGNOS Announces Exercise of Stock Warrants and Provides a Cash Update".
February 24, 2021 "DIAGNOS Announces its Exclusive Strategic Partnership Agreement with Labtician Ophthalmics, a Leader in Canadian and International Eyecare Markets to Address Growing Needs in the Monitoring of Diabetic and Hypertensive Patients".
February 2, 2021 "DIAGNOS Announces Further Deployment of its AI based CARA Technology in Saudi Arabia".
January 28, 2021 "DIAGNOS announces the re-opening of its medical testing in Panama".
January 21, 2021 "DIAGNOS Successfully Completes ISO 13485 / MDSAP Audit".
...Click here to view more news releases from source
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A closer look at DIAGNOS' traditional business (targeting vision loss in diabetics) and how the company sees it growing
Diabetic retinopathy is silently blinding millions of people a year, the market size was valued at USD $8B in 2018 and is expected to witness 6.9% compounded annual growth rate from 2019 to 2025.
Figure 4. (above) - Client Test Referral Pathway -- Because the images can be sent over the internet, the doctor can be in a different physical location confirming the diagnosis.
DIAGNOS' algorithms are capable of
Figure 6. (above) - Comparison of normal vision vs. what someone with DR might see.
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Below is expanded insight on DIAGNOS Inc. and its technology.
*Projections, estimates, and assumptions herein are based on journalistic opinion, not Company guidance
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:
Andrι Larente, President, CEO, and Director
Mr Larente has previously held leading management positions with companies such as Siemens, Syscan International, Newbridge Networks, Legent Corporation, Cognos, Tandem Computers and Honeywell Information Systems.
Dr. Reid MacLellan, MD, MMSC, Director
Dr. MacLellan received his MD diploma from the University of Alabama School of Medicine. Dr. MacLellan also holds a Master in Medical Sciences degree from Harvard Medical School. His primary area of investigation is focused on vascular anomalies. Dr. MacLellan currently serves on different boards of healthcare organizations.
Francis Bellido, Director
Mr. Bellido has spent his career overseeing and leading the development of several organizations in the healthcare industry. He brings sound financial management expertise, deep operating and leadership experience, and a global business perspective that he acquired over 30 years of international experience in the Biosciences, Healthcare and Financial industries. Notably, Mr. Bellido managed a CA$300M life science investment Fund (SGF-Santι) that produced several key players in the Medical Device industry.
Vincent Duhamel, Director
Mr. Duhamel has an established track record in overseeing start-up companies and restructuring operations, as well as leading large investment teams in multi-cultural environments. Mr. Duhamel was recently Vice Chairman of the board of directors of Fiera Capital, a leading independent global asset management firm. Prior to joining Fiera Capital, he held several senior positions in Asia and Canada, including Managing director of Goldman Sachs Asia. Mr. Duhamel has played an active role on several boards and committees, including at the CFA Institute and the Stock Exchange of Hong Kong.
Robert J. Dunn, Director
With 40 years of extensive experience in the insurance business, Mr. Dunn brings expertise in, among others, the financial and communications sectors. From 2017 to 2019, Mr. Dunn held the position of Vice Chairman and Executive Vice President of HUB International Quιbec Ltd.
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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
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