4.7% - 10.4%
min - max equity offered
NZ$840,000 - NZ$1,999,200
min - max investment sought
min investment parcel
Do these scanners require FDA clearance ? How feasible is it getting clearance in China for these scanners? I am sure there must be some regulatory approvals required to get these approved for use in clinical practise
I want to know which companies you will be competing against? Are GE, Siemens, PHilips unaware of this need in the market and do they not have any high field compact speciality head scanner MRI product available in the commercial market or in development to reach market sooner?
How is your technology different than others?
The global MRI equipment market was estimated at US$4.6 billion in 2013 and is projected to reach US$6.3 billion by 2018, exhibiting a compound annual growth rate (CAGR) of 6.2%. The USA represents the largest market for MRI equipment with an estimated share of 34.6% in 2013. Asia Pacific represents the fastest growing market, exhibiting a CAGR of 11.9%.
Magnetica is confident that its technologies represent a value proposition for both mature MRI markets such as the US and Europe and the rapidly emerging markets in Asia, and particularly in China.
China is emerging as one of the fastest growing healthcare markets, and presents huge market potential for MRI systems with sales for 2013 reported at USD$483.9m. At present, in China, there exists only one MRI scanner per one million people, where the US has over 50 MRI scanners per one million people.
Developed or mature MRI markets such as the US and Europe have taken up speciality or dedicated MRI systems. Dedicated systems are attractive to both clinicians and administrators. Clinicians can tailor reliable specialised scans versus whole body generalist systems, while administrators can rely on improved asset utilisation and patient throughput with lower capital and running costs.
Currently there is no very high field compact speciality head scanner MRI product available in the commercial market. The concept of smaller, high performance, cost effective systems is expected to be economically and clinically very effective.
The size of the potential markets for dedicated systems is also easily recognisable as a percentage of total scans taken as shown in Figure 3 below.
Figure 3: US MRI Procedures by Type
US, Europe and the expanding and underprovided Asian market.
Magnetica’s has advanced and niche MRI technology. This proprietary knowledge could have significant value in the eyes of other industry players. It is likely that the returns will be driven by a trade sale to another company in the broader healthcare market.
Liquidity Event – Trade Sale/IPO
The company’s goal is to achieve a successful trade sale or IPO liquidity event on successful commercialisation of its 3.0T extremity/head scanner products.
Examples of a comparable company/industry and their deal flow/pricing is as follows:
Micro-X Ltd (ASX: MX1)
This company achieved a successful IPO on the ASX on 21/12/2015 with a market capitalisation of $59.7m. It is focused on the design, development and manufacturing of ultra-lightweight CNT based X-ray products for the global healthcare and counter IED imaging security markets. Audited Accounts show its 2015 revenue at $160,716.
The investors below have committed capital to the business in this funding round.