Broker bullish on Singular Health

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Sydney brokerage and research firm, Red Leaf Securities has run the ruler over health tech company Singular Health and says it offers attractive exposure to in demand technologies like VR, AI, blockchain and 3D printing.

Red Leaf says Singular’s bespoke medical technologies, particularly its flagship 3Dicom Surgical 3D imaging product, could be a game changer given its application will promote a vertically integrated “scan to surgery” process. The all-encompassing technology will carry a patient from initial 3D diagnostic scans through to the delivery of individual implants in the operating theatre.

In addition, the broker says Singular’s acquisition of ‘Virtual Surgical Planning’ and the procurement of a 3D printing facility in Melbourne permits the provision of an end-to-end surgical planning process that could deliver a competitive edge, result in high operating margins and open the door to bolt-on M&A opportunities.

The boutique broker says its estimates are supported by strong macro trends in the medical technology and imaging industries.

Healthcare is experiencing strong growth at present as a result of rising global life expectancies and an ageing population. The medical imaging market has ballooned off the back of these factors and is now valued at USD$2.4 billion and growing at a compound annual growth rate or “CAGR” of 8.18 per cent. The medical 3D printing and AI markets are expected to follow suit, growing at a CAGR of 16.3 and 30.4 per cent respectively according to Red Leaf.

Singular Health recently hit the headlines after breaking into the medical “metaverse” with its virtual reality 3D medical visualisation tools that allow practitioners and patients to confer through virtual reality headsets. The company says its virtual surgical planning software is aligned with Facebook’s metaverse and will support the visualisation and design of patient implants.

Singular listed on the ASX on the back of its remarkable technology that can take a 2D CT or MRI scan and convert it into a 3 dimensional picture for patients and medical practitioners alike.

The technology essentially provides a fully interaction 360 degree view of a tumour or some other problem area and removes the need for highly trained practitioners to interpret problem areas from a 2 dimensional scan.

Singular’s business model is to provide its software as a web based service and it has several levels that start with a patient who wants to see his or her tumour or other problem area in 3 dimensions. GP’s also have access to the software and a more advance version is available to surgeons who can use it to guide them when planning surgery.

The technology is also able to take 3D scans of a broken jaw for example and that scan can be used to make a replacement jaw or some other body part by using 3D printing – and perhaps not surprisingly Singular also has access to 3D printing technology.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au



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