Positive Developments in Kardiolytics: VCAST Certification and Strategic Partnerships Fuel Optimism for Future Growth

Kardiolytics

In contrast to the ECG business, the Kardiolytics area has generated positive newsflow recently. The company, in line with our assumptions, started the CE certification process for VCAST technology in October, which will enable the introduction of VCAST to markets in EU countries, the UK, Switzerland and also Australia in 2024E.

Kardiolytics has signed a letter of intent with Polish diagnostics provider Grupa Diagnostyka to use VCAST technology for coronary artery disease testing. This will enable the project to generate its first revenues after registration. In 2024E, the company should also conduct clinical trials and submit a registration application to the FDA.

A commercial launch is projected for 2025. We assume 56% cumulative probability of success. Our valuation of Kardiolytics is PLN 247m, or PLN 24.8 per share.

Recommendation and valuation

We decrease our FV to PLN 41.2ps from PLN 45.2ps following the earlier-than-expected termination of contract with React and since the new FV implies 50% upside vs. the current price, we maintain our BUY rating.

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