Interesting Report....Arrowhead is updating coverage on DIAGNOS Inc. with a fair value bracket of CAD$ 0.10 (Low-Bracket estimate) and CAD$ 0.14 (High-Bracket estimate).
Key Highlights: (1) The company entered into an agreement with a Canadian hospital, the CHUM in Montreal;
(2) The company signed a 3-year contract with its first customer in the USA after a successful pilot. They are currently screening an average of 600 patients per month, with the customers ordering additional cameras;
(3) DIAGNOS entered into its first contract in Saudi Arabia with a local partner;
(4) The company has started working with pharmaceutical companies such as Novo Nordisk to broaden the use of its AI technology for the detection of Hypertension complications in the retina of the eye;
(5) DIAGNOS opened its first of 15 clinics in Panama and a new provincial government state in Mexico. The company also has several new proposals in Latin America with many governments and clinics;
(6) The company established a sales force to cover Latin America and the USA including existing international accounts. The Mexican government had temporarily stopped the mass screening program because of elections in Mexico, but it’s expected to restart soon, given the election is over;
(7) DIAGNOS announced FY18 results with a decline of 32.5% in its top-line on YoY basis;
(8) DIAGNOS signed a contract with Novo Nordisk to monitor the diabetic patient using its CARDIO software tool;
(9) In 2017, DIAGNOS sold its mining division to Majescor Resources;
(10) DIAGNOS has partnered with big pharma companies such as Novartis and Bayer to launch its software tool CARA across different geographies.
CARDIO is another important software being tested by DIAGNOS in four countries, after CARA, and appears to have strong growth potential. A few other healthcare-focused software tools, which are presently in the development phase, include OCT, Sleep Apnea and Alzheimer’s disease.
Arrowhead believes that DIAGNOS fair-share value lies in the CAD$ 0.10 – CAD$ 0.14 bracket using Discounted Cash Flow (DCF), which is our primary valuation methodology.
https://www.abid.co/sites/default/files/Diagnos%20Inc%20-%20ABID%20Report%20-%2024%20September%20%202018.pdf