MINER'S REBIRTH AS ALCIDION COMPLETE
Written on the 29 February 2016
THE transformation of Naracoota Resources into Australia's newest health technology company, Alcidion (ASX:ALC), is complete with shares in the new-look company resuming trading for the first time since December.
Shares in the Adelaide-based company rose as high as 21 per cent to 6.8c today, before settling just above the previous close of 5.6c.
The shares resumed trading after Naracoota shareholders approved the company's $12.4 million acquisition of Alcidion, which was an effective reverse takeover of the former Perth-based miner.
Alcidion's key asset is the Miya software, designed to provide advanced clinical decision support for clinicians and care teams.
The platform, already used in Victorian hospitals, can be accessed on a variety of mobile devices and guides clinical decision making processes to maximise efficiencies, avoid clinical errors, and reduce costs.
The software is soon to be adopted by Tasmania and the Northern Territory.
Alcidion executive director Nathan Buzza (pictured) says the company has set its sights on expanding into the US market, seizing on the opportunities Obamacare has provided to improve patient care.
"Obamacare means hospitals have to prove they are investing in technology like Miya, otherwise they'll be penalised," says Buzza.
"Add this incentive to the rising costs of healthcare, which technology can help to alleviate, and it is a very good time to be in health informatics."
However, conquering the Australian market is Alcidion's first priority.
South Australian Premier Jay Weatherill, who spoke at Alcidion's ASX launch in Adelaide, says health industries are now the driver of economic activity in Australia, rather than a burden.
"Healthcare and social assistance is the fastest growing sector of our state's economy with total employment increasing by more than 13 per cent between 2012 and 2015 alone," says Weatherill.
"Alcidion has demonstrated that by focusing on practical problem-solving and better patient care, we can both create economic growth and improve people's lives."
Nick Dingam, investment director at Brisbane-based Blue Sky Private Equity which invested $2 million to fund the development of the Miya platform, says the ambitious US strategy could well turn Alcidion into a $100 million company.
"Alcidion's success shows that Australia makes great software that is scalable to larger markets such as the US," says Dingam.
"The listing is a huge opportunity for Alcidion and a great opportunity for investors to get exposure to a health tech business with massive growth potential."
Based on the current share price, Alcidion is valued at $19 million.