Market Equities Research - Market Bulletin September 21, 2017 3:51 PM ET

 

DIAGNOS Inc. Expands Proven AI Platform into Early Detection of Cardiovascular Disease

  • Applying artificial intelligence in the diabetes and cardio vascular disease market.

  • DIAGNOS' revenue growth curve is accelerating with monthly patient screenings up multiples year-over-year and continuing to rise.

  • Client partners include Novartis and BAYER.

  • Diagnos Inc. is positioned as first-mover with advanced algos -- major upside potential in a ~US$400B/annum market place.

Simon Levinson, f.william@marketequitiesresearch.com


DIAGNOS Inc.

Technology, Healthcare, Mining, Industrial

TSX-V: ADK,  OTC: DGNOF,  http://www.DIAGNOS.ca

Prices

Share: C$0.12

MCap: ~C$20M

On: 09/20/2017

History

52-Week: C$0.04–C$0.20

   

Prices

Shares O/S: ~170 million

Fully D.~200M  

  

A few months ago Market Equities Research Group identified DIAGNOS Inc. in a research report with several potential catalysts that exist near-term with potential to result in $150 million market cap ($1 /share) for ADK. A copy of that research report may be viewed here. We reiterate that price target as a near-term (12-month) target, on the way to substantially higher valuations from there. Look for confirmation of diabetes screening targets being met, announcements of new deals, partner developments, earnings, and further developments in platform targeting cardiovascular disease as catalysts.

 

 

Fig. 1 Retinal image enhanced with DIAGNOS software, prepped for A.I. auto-detection of pathology & lesion classification. Using artificial intelligence in healthcare saves government and healthcare services money by preventing debilitating blindness in at-risk populations.

DIAGNOS Inc. (TSX-V: ADK) (US Listing: 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".

 

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.

  

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

 

Market Equities Research Group pointed out in its June research report that DIAGNOS' foray into early detection of Cardiovascular Disease has the potential to be a MAJOR company maker. The retinal vasculature is proposed as an easily and safely measured surrogate for the coronary circulation. It is hypothesized that because retinal vessels are approximately the same magnitude as coronary microvasculature (~100­250μm in diameter) they can serve as representative of processes occurring in coronary microvessels, and therefore serve as a marker for subclinical or microvascular coronary disease. Over the last 8-10 years, multiple large, prospective studies examining the relationship between retinal vascular changes and clinical endpoints of coronary disease has provided strong evidence for a positive correlation between the two. It is known that abnormalities in retinal images can potentially provide useful information about clinical and sub-clinical (not severe enough to present definite or readily observable symptoms) cerebrovascular, cardiovascular, and metabolic health of the patient. There are therefore advantages of using digital image analysis to quantify the extent of retinal pathology in vascular diseases, diabetic retinopathy (DR), age-related maculopathy and other conditions.

 

With or without this new foray into CVD, DIAGNOS Inc. (TSX-V: ADK) has potential to readily reach in our $1/share price target within 12 months based on DIAGNOS' current adoption rate for its CARA platform targeting diabetes alone.

 

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We have identified the following additional research links for further DD on DIAGNOS Inc.

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This bulletin may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned.
 

 
Contact information:
Simon Levinson, Editor in Chief

and Fredrick William

Market Equities Research Group
s.levinson@marketequitiesresearch.com

 

 

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