Perth-based medtech Singular Health Group says Sony Electronics is likely to “actively promote” its 3Dicom medical device (MD) as a complementary application for the global giant’s second-generation Spatial Reality Display. The new Sony product allows for 3D displays without the need for special glasses through the deployment of high-speed vision sensors that follow a viewer’s eye movement. Sony’s collaboration with Singular was established mid-last year and has led to the new display by integrating the 3Dicom MD that enables 2D data from MRI and CT scans to be converted into immersive 3D models.
That ultimately makes it easier for medical professionals, such as surgeons and dentists, to plan medical procedures.
The result of the Sony-Singular collaboration was unveiled at a medical conference in the United States in March. Singular says the solution generated by its device has since been positively received by industry professionals and the company anticipates its relationship with Sony will now deepen. Management says it expects Sony to promote 3Dicom MD through tradeshows, press events and internal Sony events.
It comes as Singular embarks on its transition from a recent period of research and development (R&D), core product development and attaining regulatory approvals, into the next phase of its growth. That will include product commercialisation, distribution and the manufacture of products from its wholly-owned 3D printing subsidiary, Singular 3DP.
That subsidiary purchased the assets of Global 3DP late last year, opening up new opportunities for Singular in industrial and medical 3D printing, particularly in the orthotics and prosthetics markets.
In tandem, Singular is implementing a raft of cost control measures driven by the company’s pivot towards commercialisation. For example, R&D expenditure was down by nearly 70 per cent in the quarter ending in March this year and advertising and marketing expenditure was down 50 per cent as the company embarked on a shift to internalise marketing and investor relations and optimised its advertising and go-to-market channels.
Staffing costs were also reduced, partly due to the dissolution of the company’s advisory board following its successful application to the US Food and Drug Administration (FDA) for its 3Dicom MD and the ratification of its product development road map. FDA approval was granted in October last year, opening the door to the lucrative American medical imaging software market that is estimated to be worth more than US$1 billion (AU$1.5 billion).
Singular also appointed several sales partners in the quarter, including one in China in March that established an important presence in that country. Yikun Technology became a 3Dicom sales partner and the appointment was soon followed by an initial order for 100 licences for a translated version of the 3CDicom MD from the Yancheng N1 Peoples Hospital. Management says the enterprise order adds up to a total annual contract value of US$50,000 (AU$75,000).
On the liquidity front, Singular reports it is in a “strong” position and currently has $1.5 million in cash. The company predicts it will continue to enjoy the current net level of net operating cash flows in the foreseeable future because of its cash raise in April through a placement to private and sophisticated investors that generated $1.05 million.
Shareholder approval to complete that placement will be sought in the next quarter. If granted, management says it will use the funds for various purposes, including at its Singular 3DP facility to unlock the orthotic and prosthetic market for custom-made medical devices and the development of enterprise-grade solutions for 3Dicom MD software to close currently outstanding and well-progressed enterprise opportunities.
Last year saw Singular achieve the all-important breakthrough that every biotech dreams about – FDA approval to allow sales of its 3Dicom MD product into the world’s single-biggest life sciences market, the US. This year, all eyes will be on the company to see how well it can consolidate sales from that breakthrough while at the same pushing ahead into new 3D printing for the medical and industrial markets.
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