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News: Medibio Limited identifies US$2.3B opportunity for depression test technology

  1. Medibio Limited (ASX:MEB) has identified a $2.3 billion revenue opportunity for the US medical market relating specifically to depression.

    This follows completion of a commercialisation study on its CHR depression test technology conducted by Minnesota-based The Ametus Group, a leading independent medical consulting group in the U.S.

    The results are timely given the company’s recent agreement with the Johns Hopkins University School of Medicine to undertake a study designed to clinically validate the company’s CHR technology for the diagnosis of depression and support an application for FDA certification.

    The key takeaways from the commercialisation study are:

    - Based upon primary market research there is a need and desire to utilise the CHR technology as a device for both the initial differentiated diagnosis of depression and also for ongoing monitoring of therapy effectiveness;
    - There is a series of existing CPT™ codes and payment structures, which cover electrocardiographic monitoring for up to 48 hours, which could be leveraged for MEB’s business plan in the US;
    - The current average US$45 per test rebate net to Medibio under the codes should support strong margins based on Medibio’s likely cost structures;
    - Ametus believes that if a reimbursement strategy is based around expanding indications for payment from existing payors/insurers within the existing CPT & ICD9 codes full national reimbursement coverage is possible within 24 months from FDA approval;
    - Ametus define the total revenue opportunity, based on depression alone, at US$2.3 billion with a potential market share of 5% within 5 years. This would generate revenue of approximately US$100 million annually.


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