Whywe like BCAL Diagnostics:
- High Efficacy. As a stand-alone diagnostic for all women, the BCAL test has strong (initial) efficacy of 91% sensitivity and 87% accuracy across a broad range of breast cancers. This compares very favourably against mammograms which are generally only effective as a diagnostic tool for older women (>40)
- Path to a Large Market. BCAL has a strong clinical pathway to very large target markets; initially targeting Australia, USA and Europe. There are >2m new cases of breast cancer diagnosed annually with 627,000 resulting deaths; with the diagnostic market valued at ~US$5 billion in 2019 (CAGR of 7.3%)
- Quality Clinical Evidence. BCAL has quality clinical evidence which has been validated in Australia & the USA. Breast surgeons have reviewed the data allowing BCAL to take the test into clinic trials at RPAH, NSW BreastScreen and Lifehouse
- GenesisCare Global Partnership. In May 2021, BCAL partnered with international cancer & cardiac care company, Dr Brian McNamee-Chaired GenesisCare (in 2019, KKR invested $200m for 20% holding), to act as Clinical Research Organisation (CRO) for BCAL through clinical trials programs in Australia, Spain, the UK & USA. The partnership also includes the commercialisation, regulatory approvals & market entry points for BCAL’s products – it’s very rare for a company at BCAL’s stage of development to secure such a broad partnership with such a significant global partner
- Opens New Markets. Via its targeted roll-out strategy, the BCAL test opens new markets to breast cancer screening (hence, future revenue), for example:
- Women <40 with higher breast density (currently rely on self-examination for primary screening)
- Women who have previously been diagnosed with breast cancer and require annual screening &/or those with the BRCA1 and BRCA2 gene
- Women who self-exclude for religious or other reasons, noting that mammograms can be painful procedures (which often leads to self-exclusion)
- Higher Combined Efficacy Driving High Adoption. The BCAL test will initially be a complementary test which, together with a mammogram, will provide a very high combined efficacy with minimal additional cost to the patient. BCAL is not seeking to re-train clinicians to undertake an alternative, disruptive test to the gold standard. It is anticipated that will lead to high test adoption
- No Specialised Lab Equipment Required. The equipment required to undertake a BCAL test is standard, unspecialised equipment that most laboratories (internationally) already operate
- Existing Reimbursement. Reimbursement pathways for a breast cancer blood test exist
- Platform for Future Expansion. BCAL’s platform technology (exploring blood lipid profiles in cancer) provide future expansion opportunities into other indications, including prostate & lung cancer
- Strong IP Portfolio. Strong existing & lodged patents with focus on broadening out the IP portfolio
- Strong Chief Scientist. Dr Amani Batareh (magna cum laude La Roche College, Pennsylvania + Pacem in Terris Scholarship for academic excellence; PhD Georgetown University, Washington; post-doctoral studies Harvard University, McGill University & Wollongong University)
- Experienced Board. Jayne Shaw & The Hon. Ron Phillips (sold Sydney Breast Clinic to Healthscope), Mark Burrows (CSFB banking veteran, multiple past ASX10 Chair roles), Jonathan Trollip (Propel Funerals, Kore Potash, ex-Freehills Partner) and Dr Merilyn Sleigh (EvoGenics, Clover Corp, Tyrian Diagnostics, AdAlta, Peptech, CSIRO)
