Healthcare

PainChek posts strong revenue growth: US entry likely

Tue 26 Apr 22, 2:21pm (AEST)
Health care FPH medical device
Source: Fisher & Paykel Healthcare

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Key Points

  • PainChek's global revenue has grown 66% in the last quarter
  • The healthcare company is seeing customer retention rates of 97%
  • The company's possible entry into the US market could be a "significant development"

Smartphone-based pain assessment company PainChek (ASX: PCK) has announced strong growth in the company’s latest quarterly report for the period ending March 31.

Despite the positive report, the company has fallen -2.44% today, with the result possibly weighed down by a general weakness in the healthcare sector (down -0.48% today).

Strong revenue growth

PainChek’s global revenue rose to $303,000 in the last quarter, marking a 66% gain from the previous period. 

Year to date, customer revenue sits at $635,000 – a 345% improvement on the previous 9 months to March 2021.  

While research and development incentives have formed a substantial portion of the company’s year-to-date revenue ($1.09m so far this year), no additional R&D Incentive funding was received in the March quarter. 

Likewise, no government grants were received in the quarter, although the company does expect $204,606 of government grant revenue to be recognised in the next quarter. 

As of 31 March, the company’s cash balance sits at $4.7m. 

High retention rates 

Of particular note is the company’s strong customer loyalty.  

“In Australia we continue to achieve strong retention rates of approximately 97% for those customers who have implemented and transitioned to commercial contracts,” says CEO Philip Daffas.   

“The results of the past quarter reconfirm the Company’s positive progress on all fronts.”

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Possible entry into the US

The company’s adult and infant apps are currently undergoing regulatory clearance with the USA’s Food and Drug Administration (FDA). 

PainChek has applied for the company’s Infant App to be recognised as a clinical decision support device to aid the USA’s covid infant vaccination roll out plan.

“Market access for the US in 2022 would be a significant development for the Company and would allow PainChek to align the Infant technology across US, Europe and ANZ as the infant COVID-19 vaccinations roll out,” says the company. 

Entrance into the US market is by no means guaranteed. The company failed to get Australia’s government to consider the Infant App as part of Australia’s own infant vaccine rollout. 

Still, the company has stayed in contact with the Department of Health with regards to the initiative. 

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Overseas sales

In the United Kingdom, PainChek currently has over 5,000 contracted residential aged care (RAC) beds, marking a strong rise from 3,500 in the preceding quarter. 

“PainChek now has integration agreements with care management and medication management partners who can provide a pipeline opportunity of up to 180,000 Residential Aged Care Beds,” says the company. 

In New Zealand, the nation’s third-biggest aged care provider – Summerset Holdings – plans to deploy PainChek’s app across all of Summerset’s centres. Provided that PainChek’s 6-month trial goes successfully, this should see the company reach a further 1,150 beds. 

Key study to commence in May

Melbourne’s Royal Children Hospital has started recruiting research assistants for the Painfaces Study. The clinical study is set to begin in May 2022, and will evaluate the validity of the company’s apps for assessing infant pain.

PCK Price Chart - 3 months - 26-04-2022
PainChek's share price over the past 3 months, with the S&P/ASX 200 Health Care index shown in red.

 

Written By

Jed Herne

Content & Strategy

After graduating with a 99.4 ATAR, Jed won 3 scholarships to Curtin University, where he earned his Bachelor's degree and served as a Student Ambassador. He is primarily interested in long-term passive index funds as a vehicle for financial independence. Outside of covering financial news, Jed is a published author, podcaster, and has an unhealthy obsession with bouldering.

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