The Resonance Health Limited (ASX: RHT) share price has rocketed 20% this morning after the company announced it has entered into a license and royalty agreement with 3DR Laboratories. Under the agreement, 3DR Laboratories has the non-exclusive right to sell Resonance Health's FerriSmart service in the United States.
Over the past 12 months, the Resonance Health share price has grown tremendously from $0.072 to $0.222 at the time of writing, an increase of 208%.
What does Resonance Health do?
Resonance Health is involved in the development and delivery of non-invasive medical imaging software and services. The company's products are used by clinicians in the diagnosis and management of diseases, as well as by pharmaceutical companies in clinical trials. Resonance Health's leading product is FerriScan, a non-invasive test for liver iron concentration.
Royalty Agreement with 3DR Laboratories
As part of the agreement, Resonance Health has granted 3DR Laboratories a license to market and promote the FerriSmart service. The license also allows 3DR to use, sell, market, promote and provide FerriSmart reports to customers in the United States.
3DR is the largest 3D medical post-processing laboratory in the United States. Since its founding in 2005, 3DR has provided post-processing services to hundreds of hospital radiology departments, stand-alone imaging centres, and radiology practices. In October 2019, 3DR was acquired by Arizona-based leading healthcare performance improvement technology firm, Accumen.
Accumen President and CEO Jeff Osborne stated, "We are excited to partner with Resonance Health to provide our clients with this additional resource for mining valuable diagnostic data from their MRI images".
"3DR is already working with 900 hospitals in the United States, creating three-dimensional images from their MRI and computed tomography scans. We consider FerriSmart reports to be a natural extension to the comprehensive MRI analysis services that we already offer to our 3DR clients," he went on to add.
Quarterly Report Update – Q2 2020
Last Wednesday, Resonance Health released its 2nd quarter FY2020 report to the market. The company's cash on hand as of 31 December 2019 was $3.38 million, an increase of $135,000 over the September 2019 quarter. Cash receipts from customers for the December 2019 quarter totalled $846,000, while total revenue in this same quarter was $938,000 (unaudited).
Resonance Health received a research and development tax incentive refund of $240,000 on 10 January 2020 for eligible R&D work performed during FY 18/19.
Recent business activity updates
Last November, Resonance Health reported that work had commenced on a dossier preparation in order to get regulatory approval for the company's new artificial intelligence (AI) tool. The dossier is due for submission by the end of the March 2020 quarter.
This new AI tool provides a fully automated solution for the assessment of liver fat and should be suitable for the diagnosis and treatment of non-alcoholic fatty liver disease (NAFLD) and nonalcoholic steatohepatitis (NASH). The new AI tool may be integrated directly into existing radiology workflows.
One week after this announcement, Resonance Health also reported it had executed a solution partner agreement with Siemens Healthcare GmbH for the distribution of the company's FerriSmart product through the Siemens Digital Marketplace.
