Philips × Imricor = Plug-and-play

• Turnkey solution: The announcement provides a turnkey solution, lowering frictions to adoption of the new platform. The announcement comes shortly after Philips declared compatibility with Imricor, illustrating the rapid pace of collaboration between the two companies.
• TAM unlocked: As highlighted in our previous research (see report: Philips TAM Unlocked!) Philips is one of the 3 major MR vendors in U.S. and EU markets. We estimate that Philips accounts for 17% and 27% of MR hardware in the U.S. and EU, respectively. Philips' software release enables hospitals on Philips MRI systems to connect to NorthStar, substantially increasing the addressable installed base.
• A jumpstart to adoption? The FDA recently issued a class 2 recall for thousands of interventional fluoroscopy systems manufactured by Philips. These are exactly the solutions IMR are seeking to displace. We think the recall, combined with the announcement of this turnkey solution, could catalyse faster-than-expected adoption of IMR's solutions, displacing legacy interventional fluoroscopy systems.

We have a valuation of A$3.3 for IMR which is 70% above today's market price.

Fig 1: Philips × Imricor Cardiac Interventional MR Lab Solution

Notes: ombines Philips’ high-performance 1.5T MRI platform and advanced interventional workflow capabilities with Imricor’s exclusive portfolio of systems and consumables for MR-guided cardiac interventions.

Source: Company data