MARS Bioimaging

[Jaa]

Anyone running the ruler over MARS Bioimaging?

Their product looks interesting, financially compelling and useful.

A breakthrough imaging tool to improve medical diagnosis at the point of care. It provides high-resolution imaging that provides faster, more accurate diagnosis at lower radiation doses.

They are raising a decent amount via Snowball for US expansion. Between $6.9m (which they already have) and $15m at a pre money valuation of $30m. Minimum investment is $5,000.

Don't ask about current revenue but the forecast is for 100%+ growth in revenue year on year, targeting $131m in 2029.

First customer, HSS the world’s largest orthopedic hospital group is an investor as is VC Pacific Channel who are in for $4.5m in this round.

https://www.snowballeffect.co.nz/off...oimaging-dwwlf

[whatsup]

Anyone running the ruler over MARS Bioimaging?

Their product looks interesting, financially compelling and useful.



They are raising a decent amount via Snowball for US expansion. Between $6.9m (which they already have) and $15m at a pre money valuation of $30m. Minimum investment is $5,000.

Don't ask about current revenue but the forecast is for 100%+ growth in revenue year on year, targeting $131m in 2029.

First customer, HSS the world’s largest orthopedic hospital group is an investor as is VC Pacific Channel who are in for $4.5m in this round.

https://www.snowballeffect.co.nz/off...oimaging-dwwlf

Getting FDA approval for something like this IMHO will be , well good luck to them , unless there is more info as to how that will go, good luck .

[Jaa]

Yes FDA approval is always harder and takes longer to get than companies think. They barley mention it.

MBI has already received Medsafe (NZ) Certification and has engaged leading international regulatory consultants Medicept and global testing company Eurofins to support the approval process in the US and Europe. MBI expects to achieve FDA approval for US clinical sales by Q4 FY25, with CE compliance in the following year

Six hours left and they are up to $7.79m raised so less than a $1m from what the $6.9m they started with. Think they will be disappointed with that. It is an interesting company with a real shot at success.

[Ferg]

Apologies for the long reply Jaa but I put up a post about them in another thread here. In summation Mars are reliant on the FDA approval and I'm not comfortable with the shareholding structure, nor the achievability of their forecasts.

An overview of what I posted plus some follow up comments from myself, Snoopy & kiora:

Mobile high resolution / low radiation scanning of limbs for orthopaedic purposes in outpatient clinics instead of the large centralised machines currently in use. Atomic level scanning provides for a greater resolution image. The tech has been proved in research centres but requires FDA approval for use on humans.
https://www.marsbioimaging.com/

Where I found it was via their current fundraising round which was possibly posted elsewhere by someone else:
https://www.snowballeffect.co.nz/off...oimaging-dwwlf

I think the technology is good but I am not convinced about the business case. My concerns:

• unrealistic margin predictions (as more sales are made, more competitors will appear)
• convoluted capital structure whereby new investors do not hold directly, instead they are investing in a nominee company (to reduce 'compliance requirements')
• what happened to all the other small shareholders in 2021?
• A few hoops to jump through to get to profitability in 2027
• Is the 9 years remaining on the CERN chip licence enough protection? (or was there other IP I missed in their video?)
• Employee share option scheme where employees get up to 20% of the company
• plus more (funds used to repay debts(?), historic prices for current investors, make machines in NZ and ship to USA, will be reliant on USA VP of Sales, plus more)

In summary, interesting tech but IMO a risky business case. Assuming the FY29 profit target is met, that will be a P/E of around 1.

And some follow up comments:

kiora:

Like PEB have to jump through hoops & expensive for this part?

Sometimes in US market it is better to join up with a partner or license the technology?

"New York’s Hospital for Special Surgery approves trial of MARS scanner

In an exciting milestone for MARS Bioimaging, a clinical trial for the MARS scanner at the Hospital for Special Surgery (HSS) in New York City has been approved to move forward by HSS’ institutional review board (IRB). This study marks the first US clinical trial for the MARS Scanner, set to commence in July 2024.

“This is highly significant for MARS Bioimaging,” says Chief Medical Officer, Professor Anthony Butler. “This sign-off marks our company’s first step into the US market as it involves patient trials that are required for FDA compliance and insurance reimbursements, as well as improving accessibility to health care."

https://www.marsbioimaging.com/2024/...linical-trial/

My response to kiora & the HSS partner:

This does put them one step ahead given the partner will be customer. And the customer has multiple sites where they will use this equipment. Also a friend in the industry reckons if any radiologist was going to win the Nobel prize for physics it would be Anthony Butler. So maybe he is another Peter Beck.....

And a final word from Snoop dog regarding entering into a partnership. Notably Snoopy had an investment in a similar startup (HTS-110) that ended up using their technology in applications other than radiology:

Not just sometimes. Joining up with a partner who is working at the coal face in the industry that you are trying to service the key IMO.
{and}
I really like the 'partner will be a customer' comment. That is what would give this venture a fighting chance. The US is still the principal market globally for marketing high tech ideas to. Perhaps balanced out a bit by the FDA policeman on the corner. But I guess you can't blame the US government for being careful on medical matters.

The thread then talked about FDA risks and scientists selling to other scientists doesn't necessarily result in commercial success.