The final debutante for 2023, Enlitic Inc (ASX: ENL) hit the boards on December 19th after a successful $A21 million capital raise to accelerate the company’s commercialisation in the AI-powered medical diagnostics space.
The Colorado-based outfit listed on the ASX via chess depository interests (CDI) currently trading at A$0.65, down 27% from the IPO offer price.
Using artificial intelligence, the company is developing products that manage medical imaging data in radiology and licences such products to healthcare providers and original equipment manufacturers.
Looking ahead, Enlitic has multiple software releases scheduled for FY2024, set to boost delivery to contracted customers and advance the capabilities of the product and the company’s strategy.
Figure 1: ENL share price chart
Company Overview
Enlitic is a software development company that uses AI to develop software products that manage medical imaging data in radiology (such as MRI, CT scans, X-ray and ultrasound images) and licenses such products to healthcare providers.
Its technology features a host of AI-powered modules that enable data standardisation, de-identification, anonymisation and workflow simplification.
The company’s mission is to "revolutionise" healthcare by leveraging AI and data, empowering evidence-based decision-making, enhancing research, and transforming healthcare delivery.
The Enlitic solution is built upon a software framework, creating a network between applications.
It houses an ecosystem that enables and supports the exchange of information or content between different interdependent applications.
The framework facilitates communications between modalities, Enlitic applications, Electronic Medical Records and PACS.
What are Enlitic’s applications?
Enlitic currently offers the following key products (Figure 2):
ENDEX™: a medical imaging solution that standardises and structures data from medical images - this is Enlitic’s core product; and
ENCOG™: de-identifies medical imaging data.
Enlitic also has in development the following two products in its pipeline:
ENCODE™: will seek to improve data quality that impacts coding and reimbursement; and
ENSIGHT™: will seek to leverage interoperability with data analysis
Figure 2: Real-world medical image database (Source: company website)
What’s been happening lately?
In 2023 alone, Enlitic has secured 10 successful contractual agreements.
Following suit, Enlitic has expanded its subscription license agreement recently with leading diagnostic services provider Unilabs Laboratoire d’Analyses Médicales to provide its ENDEX software to Unilabs’ radiology business.
Unilabs is one of Europe’s largest diagnostics companies with a network of over 180 imaging centres, conducting more than 5 million imaging exams annually.
Unilabs will implement Enlitic’s ENDEX software across its radiology business to normalise its medical image data to a consistent clinical nomenclature and to connect relevant clinical content across its different clinic systems.
The new agreement incorporates the remainder of Enlitic’s 2021 contract with Unilabs’ TMC business which resulted in a 10% increase in radiologist productivity, with faster reporting and the ability to handle higher exam volumes.
FY24 outlook
In the first two months of 2024, Enlitic continued to progress the conversion of its customer opportunity pipeline with several US customer agreements moving through the proof-of-concept phase towards license agreements.
Throughout 2024, Enlitic aims to continue to grow its customer base and pipeline by leveraging its direct and OEM sales force to reach customers across key global markets.
Enlitic also began collaborating with its distribution partners, developing joint go-to-market plans and developing sales training activities.
Furthermore, the company is also developing data monetisation strategies in collaboration with its customers and healthcare providers with a view to brokering the sale of data on behalf of its customers.
Samso's Thoughts
It's amazing how the world of AI is now penetrating everyday life with levels of normality.
Industries far and wide are now adopters of AI and in many cases, the technology is applied without any fanfare. Commercialisation of technology is now a common aspect of the industry. The use in the medical industry gets more attention as human beings need reassurance of its validity but in the movie industry, it is widely accepted. Mining and mineral exploration where I am mostly involved, the technology is now mainstream.
The understanding and acceptance of AI in the medical industry will be where it would thrive the most and this is where companies like Enlitic are going to make headlines. As we can see, the commercialisation with contracts is the key for Enlitic.
I am looking at this industry more now and like many investors in the ASX, I am doing some serious DYOR. Keep your portfolio options open and reach out to the management of the company and get your own thoughts processed in line.
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