Medicalgorithmics S A : with a Letter of Intent with Diagnostyka Group on VCAST Technology

September 20, 2023

Medicalgorithmics, a medtech company included in the sWIG80 index, has signed a letter of intent with Diagnostyka Group - the leader in medical diagnostics in Poland - regarding the use of VCAST technology for coronary artery disease examinations. VCAST technology is based on artificial intelligence and is being developed by Kardiolytics, a subsidiary of Medicalgorithmics.

The letter of intent between Medicalgorithmics and Diagnostyka Group assumes that both companies will strive to initiate commercial and technological collaboration. Medicalgorithmics will also gain access to data, which will be used for further development of VCAST technology.

Virtual Cardiac Stress Test (VCAST), developed by Kardiolytics - a subsidiary of Medicalgorithmics, is a medical system used for non-invasive analysis of the coronary artery status in terms of the risk of coronary artery disease. The diagnosis is based on data from heart CT scans, which are then analyzed by the artificial intelligence system developed by Kardiolytics. This provides doctors with quick information on the patient's coronary artery status without resorting to invasive and cumbersome coronary angiography.

"Coronary artery disease is one of the deadliest diseases that can lead to a heart attack. The VCAST system has the potential to revolutionize the way its diagnosis is conducted. For patients, this means starting treatment faster, without waiting for the hospital-based, deeply invasive and often more expensive coronary angiography procedure. Therefore, we are delighted that just before the certification of the solution, we started cooperation with a reputable partner interested in the commercial use of VCAST technology. This will positively influence the certification process and its approval for use in heart disease diagnostics in the EU and US markets," says Przemysław Tadla, Board Member of Medicalgorithmics in charge of technology.

The certification process for the VCAST system in the European Union is set to begin in the fourth quarter of this year. However, the application for approval in the US market is planned for the first quarter of next year. Regulatory approvals are essential for commercial introduction of the technology to the market, which is expected in 2024. As announced in June this year, the VCAST system will be the company's second business pillar. Currently, the cardiology medtech offers a system for diagnosing heart arrhythmias based on EKG data, using advanced algorithms and artificial intelligence.

Kardiolytics, a company creating solutions for medicine based on artificial intelligence, joined the Medicalgorithmics capital group in November 2022. It was part of the investment by Biofund Capital Management LLC in the Polish medtech.

"Our plans include expanding our imaging diagnostic services using advanced AI-based technologies. Our primary goal is to focus on non-invasive diagnostic methods, which are not only convenient for patients but also significantly enhance diagnostic value in the treatment process. We are open to cooperation with Polish medical technology companies that have certified medical products or are in the final stages of the certification process and have documented positive clinical trial results. One example of such a product that we see as a potential revolution in heart disease diagnostics is Kardiolytics. This product can facilitate access to heart disease diagnosis and thereby broaden clinical knowledge for both doctors and patients," says Jakub Swadźba, CEO of Diagnostyka SA.

Diagnostyka Group is one of the leaders in medical diagnostics in Poland. Established in 1998, the company currently operates a network of over 180 laboratories and about 1100 collection points throughout the country, as well as 15 imaging diagnostics laboratories. It serves over 20 million patients, conducting over 130 million tests annually.

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• October 6, 2023