Putting Intelligence in Medical Images

Imaging Biometrics, the principal investment of IA-QI Ltd. (IQAI:  London,IQAIF:  OTC/QB), has recently received a strong endorsement from a leading pharmaceutical company, Bayer AG.  Imaging Biometrics is focused on providing advanced image enhancement solutions for users of medical imaging technologies such as magnetic resonance (MRI) and computed tomography (CAT scan).   The company’s IB Clinic platform has been chosen to debut in the launch of Bayer’s entrance into artificial intelligence-enabled radiology applications.  

Bayer’s Calantic platform features a small selection of solutions from a few independent companies, which have agreed to partner with Bayer in what is arguably a bold move in the fast-growing radiology applications market.  IB Clinic is featured in Calantic’s Neuro Service line as an oncology application for processing magnetic resonance images (MRI).  IB Clinic is one of nine products in the Calantic offering.  Other vendors include Avidenna and icometrix in the Neuro Services group and Nanox.ai, Riverain Technologies and Vida Insights in the Thoracic Services line. 

The platform is Bayer’s effort to quickly infuse its product line with leading edge technology based on artificial intelligence.  During a launch event in late June 2022, by Todor Khristov, Digital Accelerator Program Lead Radiology, explained that collaborations with external partners are an integral part of the Bayer innovation strategy.  He stated, “We recognized the creative and scientific potential outside of Bayer….By joining forces with external partners and utilizing their respective expertise, we will be much quicker in providing new digital solutions in radiology than we would be alone.”

As noted by Alexandre Salvador, Bayer’s Head of Digital Solutions in a presentation to potential customers during the Calantic launch, radiology is perfectly poised to benefit from technological innovation based on artificial intelligence.  Radiology exams generate massive amounts of data, which can be burdensome for medical professionals to review and correctly analyze.  Artificial intelligence is designed to gobble up data and rapidly use various algorithms to define and process that data for a medical conclusion.

Salvador believes the Calantic platform will be taken up rapidly because it offers state of the art technology that can have a material impact on health care outcomes through faster diagnosis and fewer errors. This in turn will reduce costs and give users a good return on investment.  Bayer’s hospital and clinic customers are driven by an increasing use of medical imaging for diagnostic and treatment purposes.  At the same time there is a shortage of adequately trained radiology professionals.  Increasing workload and inadequate staffing are expected to drive health care institutions with radiology departments to make investments in efficiency-creating software.

For Imaging Biometrics, it is the potential to be introduced to a wide audience that provides an incentive to cooperate with the Bayer team.  Bayer is among the top ten pharmaceutical companies in the world, credited with approximately 3% of world market share of global drug and therapies.  Bayer focuses on immunology, oncology and the nervous system, making it a strong distribution channel ally for Imaging Biometrics. 

Inclusion in this small group speaks well to the technological strength in IB Clinic and the capacity of Imaging Biometrics to support customers.  It is logical that Bayer would only risk its world class reputation with strong partners who can help win and retain customers.  

Despite an uptick in new interest in the shares following this recent announcement, the IQAI stock price has traded downward in sympathy with the broader U.S. equity market.  This is unfortunate, given that worries about inflation that have weighed on investor sentiment apply only tangentially to IQ-AI and its channel partners.  We believe hospitals and clinics making capital investments in efficiency-creating products are not likely to alter decisions based on the prospect of inflation rates.  The upcoming report on financial results in the first half 2022, could be the next catalyst for the stock.  Investors can look for that filing in late August or early September.

 

Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.