Market Movers: Ventripoint Diagnostics Catches A Bid Following New Potential Product Vertical

Ventripoint Diagnostics (TSXV: VPT) has been one of the largest movers of the week, with over 19.3 million shares trading hand yesterday, and a further 11.2 million shares trading hands today at the time of writing. The healthcare focused firm appears to have caught a bid following recent developments announced by the firm pertaining to new markets for its technology.

Ventripoint is focused on the healthcare industry, wherein it provides proprietary technology for use in echocardiograms. The latest rendition of this tech is referred to as VMS+3.0, with the tech enabling three dimensional models to be made from that of a two dimensional echocardiogram.

More significantly, the company has the only tech on the market that is able to provide an accurate model of the heart from 2D imaging via an echocardiogram. Traditionally, such imaging has occurred via expensive MRI’s that require patients to sit still for extended periods of time, while also having the challenge of long lead times for patients due to the relative scarcity of an MRI machine when compared to that of an echocardiography machine, which are significantly more prevalent.

We previously highlighted how the company has managed to find itself in the right place at the right time, given the impacts on the heart caused by COVID-19. Studies conducted late last year in Germany determined that 78% of patients that were subjected to COVID-19 had abnormal findings on their heart, with the diagnosis requiring constant monitoring. Such monitoring can be costly when conducted through the use of MRI’s, however the costs come down considerably if practitioners are able to utilize echo imaging instead, in combination with Ventripoint’s tech.

There also appears to be demand for the emerging technology, given that Ventripoint’s devices have been installed in leading hospitals in Europe, at renowned US-based cancer hospitals, as well as at the Toronto General Hospital. Most recently however, the company announced a study to determine the effectiveness of the VMS+ technology in treating man’s best friend.

The latest development has seen the company collaborate with the Veterinary Hospital of North Carolina State University to test and evaluate the use of the VMS+ software with echocardiography on canines. The theory here is that the tech will enable a better initial assessment in canines than what is presently available on the market, as a result of the embedded software that corrects for movement by the patient.

Ventripoint’s technology here, in conjunction with the artificial intelligence behind it, provides the potential for veterinarians to reliably visualize the heart in three dimensions, based off what is effectively routinely acquired 2D data. The ease of use of the tech is expected to be able to provide a better initial assessment, while also enabling earlier detection and treatment of any cardiac-related disease.

If successful, this would present an additional sales avenue and vertical for Ventripoint, while also providing a much needed service to the animal-care space. Pending the results, the company will also look to use its proprietary technology in the treatment of other animals as well.

Currently, the company estimates that over 40,000 VMS+3.0 devices are required to diagnose and monitor patients with heart conditions across that of Europe and North America. Such estimates don’t include the use of the devices on a post-COVID-19 basis, presenting further opportunity for the firm. With the latest developments with regards to the field of veterinary, the potential market size for Ventripoint’s unique proprietary tech is anyone’s guess.

Ventripoint Diagnostics last traded at $0.18 on the TSX Venture.

FULL DISCLOSURE: Ventripoint Diagnostics is a client of Canacom Group, the parent company of The Deep Dive. The company has been compensated to cover Ventripoint Diagnostics on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

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