LBT Innovations Ltd - More Efficient Pathology with AI and Automation
LBT Innovations Ltd
More efficient pathology with AI and Automation
LBT Innovations (ASX:LBT) is an Adelaide-based company specialising in automation of processes in clinical laboratories. LBT’s flagship product has been in development since 2010 and first received regulatory approvals in 2016. The company’s Automated Plate Assessment System (APAS) uses imaging technology and machine learning to automate imaging, analysis and interpretation of culture plates following incubation. The technology is the only US FDA-approved AI technology for automated plate reading. LBT took control of the 50/50 joint-venture technology partner Clever Culture Systems AG in December 2021 for $4m and has focused on sales growth since. The COVID-19 pandemic has resulted in a substantial increase in testing demand and highlights the need for efficiency gains in testing laboratories. APAS has approval for the two largest specimen testing types in US laboratories and has significant potential in other testing areas. LBT has ten machines active in four countries with interest rising and improved sales focus. The need for automation of clinical testing is expected to increase as labour-force constraints and volumes move in opposing directions. Like many Australian medical technology companies LBT sees the US market as the most easily addressable large market and sought and received FDA approval early in the development process of APAS.
Business model
LBT’s APAS Independence product sells for a list price of US$300,000 plus annual software licences of US$20k-40k. US sales and distribution are through Thermo Fisher Scientific (US) and Beckman Coulter for selected European countries. The company expects improved market conditions in 2023 following the major impact of the COVID-19 pandemic. LBT expects to expand the addressable market (already substantial at an estimated US$3.9b p.a.) by using the existing APAS platform to deliver a suite of products which improve processes for microbiologists in medical and non-medical (eg pharmaceutical) settings.
Commercialisation foundation established in FY22
During FY22 LBT appointed Thermo Fisher the exclusive distributor of the APAS Independence in the US with five orders placed and direct sales made to Albany Medical Centre and LADR Group (Germany). LBT also received FDA clearance for an additional analysis module in October 2021 and is seeing a growing library of independent clinical data supporting APAS. LBT appointed a new chairman and non-executive director adding relevant commercialisation expertise to the board. Annual revenues nearly doubled, and costs were held down, resulting in a smaller full-year loss.
A vibrant sector selling to the US
LBT’s product is currently the only one with FDA approval for automated plate testing. Medical device and technology companies in the Australian market include Oventus Medical, Imicor Medical Systems, Optiscan Imaging, 4D Medical, Alcidion, Pro Medicus, Cochlear and Resmed. The sector is diverse in technology, use, target consumer and maturity. As a company still developing a sales presence LBT is at the smaller end and valuation ratios based on short-term earnings are not yet relevant.
- Unlock research summaries
- Follow top, independent analysts
- Receive personalised alerts
- Access Analytics, Events and more
Join 55,000+ investors, including top global asset managers overseeing $13+ trillion.
Upgrade later to our paid plans for full-access.
- Loading...