Australian Health Tech Business Lists on ASX, Sets Sights on Obamacare

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Leading Australian health informatics company Alcidion, which is backed by Blue Sky Private Equity and Allure Capital, listed on the Australian Securities Exchange today (ASX: ALC). The listing gave Alcidion an initial market capitalisation of $33.76 million.

The listing is a huge opportunity for Alcidion and a great opportunity for investors to get exposure to a health tech business with massive growth potential.”

The capital injection will help Alcidion expand in Australia, particularly in the private sector. The business is also well positioned to grow into the US as the country starts to mandate clinical decision support technology to overcome the poor results achieved from the rolling out Electronic Medical Records (EMR) to hospitals. The clinical decision support systems market is set to be worth $USD4.65 billion globally by 2018.

Alcidion’s Miya software was designed to provide advanced clinical decision support for clinicians and care teams and its products are used for emergency departments, patient flow and outpatient services. The software also provides hospital executives with bed management and resource allocation services from the real time, point of care flow of patient data.

Hospital Executives also benefit from the technology as powerful bed management and resource allocation services can be provided from the real time, point of care flow of patient data, it combines a holistic patient profile bringing together data from pathology, oncology, care history and other sources with customised best practice modules.

The platform, which can be accessed on a variety of mobile devices, guides clinical and allied health staff’s decision making processes while they are treating patients to maximise efficiencies, avoid clinical errors and reduce costs.

Miya is live in several sites, including three Western Health hospitals in Victoria. Alcidion has also secured contracts with the Departments of Health in Tasmania and the Northern Territory.

Alcidion was founded by former chairman and CEO of the SA Health Commission, Ray Blight and associate dean of health informatics at the University of Adelaide Medical School Professor Malcolm Pradhan, who holds a PhD in medical informatics from Stanford University.

Blue Sky Private Equity first invested $2 million in Alcidion in 2012 to help fund the development of the Miya platform. The private equity manager led a second $1.5 million funding round in 2015 alongside Allure Capital and the Alcidion co-founders.

South Australia Premier Jay Weatherill spoke at Alcidion’s ASX launch in Adelaide, stating the Health Industries were now a driver of economic activity, rather than just a cost to the state.

“Health care and social assistance is the fastest growing sector of our State's economy with total employment increasing by more than 13 per cent between 2012 and 2015 alone,” Mr Weatherill said.

“Alcidion has demonstrated that by focusing on practical problem-solving and better patient care, we can both create economic growth and improve people’s lives.”

Blue Sky Private Equity investment director Nick Dignam said the listing would provide capital to expand faster in Australia and overseas.

“Alcidion’s success shows that Australia makes great software that is scalable to larger markets such as the US,” Mr Dignam said.

“The listing is a huge opportunity for Alcidion and a great opportunity for investors to get exposure to a health tech business with massive growth potential.”

Nathan Buzza, Alcidion executive director and founder of Allure Capital, said the ambitious US strategy has the potential to see the company become a $100 million business.

“Obamacare means hospitals have to prove they are investing in technology like Miya, otherwise they will be penalised,” Mr Buzza said.

“Add this incentive to the rising costs of healthcare, which technology can help to alleviate, and it is a very good time to be in health informatics.”

Alcidion co-founder Ray Blight said South Australia’s sophisticated capability in health, medical, nursing and surgical research, coupled with that of its three universities, meant technology SMEs in Adelaide could leverage a local eHealth ecosystem with great economic development prospects.

“The listing shows other South Australian businesses in the eHealth space, and their collaboration partners that they have the potential to become very successful global operations,” Mr Blight said.

Alcidion listed through a reverse takeover of mining shell company Naracoota Resources.

Blue Sky Private Equity is a division of Blue Sky Alternative Investments (ASX:BLA).

Alcidion is a leading provider of intelligent informatics for high performance healthcare that empowers clinicians with decision support tools to ensure the highest quality of care for their patients. By providing clinicians with decision support tools and making recommendations about patient care, patient flow and patient safety the organisational efficiency may be optimised and key clinical risks eliminated.

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