Conversation 150:

Why G Medicals news today may be bigger than it appears.

Israeli based G Medical [ASX: GMV] told the ASX today that it's been granted US FDA ‘Emergency Use Authorisation’ for one of its products because of shortages caused by US hospital system, overwhelmed by COVID-19 patients.

While there are nearly one and a half million Americans diagnosed with COVID-19, it is very difficult to get an accurate picture of how many people are actually in hospitals.

So just how many G Medical monitoring patches might be used?

The specific answer is unclear but more significantly, it will almost certainly expose thousands of health care professionals working in America's six thousand hospitals to the G Medical technology.

The FDA authorisation means that G Medical's Vital Signs Monitoring System (“VSMS”) can be used when traditional ECG machines are not available.

The alternative technology is literally a patch that is placed on the patient. It is a clinical-grade 6 channel ECG monitor. Traditional monitors are 12 channels.

Emergency Use Authorisations are withdrawn once the crisis is over but this news means the G Medical brand and some of its tech, gets deep into the US medical market.

I interviewed CEO of G Medical a couple of weeks ago from Israel and thought it timely to re-post it.

THE RECENT MARKET ANNOUNCEMENT BY G MEDICAL RE FDA:

• Patch now authorised in the USA for emergency use for patients undergoing treatment for COVID-19

• Patch entitled for reimbursement under US CPT code scheme – adds to GMV’s growing revenue profile

• Large addressable market for G Medical - ~1.5m confirmed cases of COVID-19 recorded in the US so far

• Fast route to market - manufacturing ramp-up of patch now underway at established facility in Israel ahead of future production at GMV's China production facility

• Patch will remotely monitor the QT syndrome prolongation on a patient’s electrocardiogram – all data will be compiled with extensive reports sent to healthcare professionals and GMV call centres for analysis