Valuing the New Cardiovascular Vertical

• New cardiovascular vertical: Imricor announced its new cardiovascular vertical. The company's NorthStar platform is already going through commercialisation milestones for use in electrophysiology (EP) which examines the heart’s electrical wiring and rhythm. The company's new cardiovascular vertical will focus on cardiac catheterisation (“heart cath”), which examines the heart’s blood flow, arteries, valves and pressures.
• Estimate ~10% upside to consumable TAM: we previously estimated IMR's revenue opportunity per lab (outside of capital sales) to be ~US$3m. We estimate that cardiovascular could contribute a further ~US$0.3m/lab, increasing annual consumable revenue sales by ~10% over the medium-term. (Fig 1).
• Near-term contributor: despite a limited uplift in revenue per lab, we expect cardiovascular to make a more timely contribution relative to VT and Afib, which we expect in FY29-30e. In contrast, we expect cardiovascular to be able to contribute as soon as FY27.

Estimate revisions: increase DCF-based valuation to A$3.1/share (previously A$3.0). Increase FY27-28e revenue 6% and 16% respectively to reflect contribution from new cardiovascular vertical.

Valuation and recommendation: cardiovascular is smaller than other verticals, but will make a meaningful contribution, and bolster nearer-term revenue growth prior to VT and Afib. Imricor's announcement of first U.S. customer provides the first evidence of commercial validation beyond the continuing positive regulatory momentum for Imricor.

Fig 1: Revenue opportunity per lab

Source: Company data, Homodeus estimates