Major medical imaging agreement, trading update
Kromek Group has announced a major, seven-year agreement to supply its CZT-based detectors to a Tier 1 OEM manufacturer of medical imaging scanners. The client has a market-leading position across a range of healthcare technology markets. Although specific details are not yet available, we regard this as a ‘breakthrough’ development for the medical imaging arm of Kromek’s business which underlines the significance of its leadership in CZT-based detector technology.The medical imaging market is broadly divided between CT- (computed tomography) and SPECT-based (single photon emission CT) products and dominated by four Tier 1 suppliers - Philips Medical Systems Inc., Siemens Healthineers GmbH, Canon Medical Systems Corp., and GE Healthcare. The difference in scale is striking, with a Tier 1 having an estimated market share of between 15% and 30%, and a Tier 2 player estimated to have a single digit percentage market share.
The group has also announced an agreement to collaborate with the Tier 2 medical imaging specialist Analogic Corporation in the application of CZT-based detection technology to next-generation photon counting CT (PCCT) imaging - for both medical imaging and security applications.
In addition, it issued a Trading Update which underpins our FY23 outlook. Kromek reports that Q3 revenue rose +50%YoY (ED FY23 estimate is +49%YoY) with a gross profit margin expected in the high 40% range (ED FY23 estimate is 47%). The Group reports being ‘broadly cash neutral’ in Q3, continuing into Q4.
Whilst awaiting further details of the agreements we maintain our near-term outlook and a Fair Value of 26p/share.
Kromek Group is a developer of radiation detectors based on cadmium zinc telluride, providing detection and characterization capabilities within the medical imaging, nuclear detection and security screening markets. Co. designs, develops and produces x-ray and gamma-ray imaging and radiation detection products.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.