Resonance Health - MRI for the masses

Stuart Roberts

Pitt Street Research and NDF Research

In December 2016 NDF Research initiated coverage on Resonance Health (ASX: RHT), a Perth-based company which developed the world’s first non-invasive diagnostic for iron overload, an MRI-based test called FerriScan. This test, which gained both CE Mark and FDA approval in January 2005, has been the basis of a small but growing business for Resonance currently worth A$2.0-2.5m p.a. in revenue. A subsequent MRI-based product, called HepaFat-Scan, for the measurement of the liver fat fraction, gained FDA approval in December 2013 and CE Mark in July 2014. Resonance continues to work on new MRI-based diagnostics.

This morning NDF Research published an update note on Resonance Health where we look at the company's recent breakthrough regarding automation of its MRI tests. Resonance announced on 14 June 2017 that it had developed ‘a machine learned artificial intelligence prototype for a low-cost test to measure liver iron concentration’. This is potential very important because FerriScan is widely regarded as the most accurate measure of Liver Iron Concentration in the world, being highly useful in managing a range of conditions from hemochromatosis to thalassemia to sickle cell disease. An automated FerriScan, which we have called 'FerriScan 2.0', has the potential to markedly lower the cost of the FerriScan diagnostic and thereby unlock new market opportunities, most notably in developing countries where there is a critical need for a robust diagnostic. We value Resonance at 7.6 cents per share base case and 14.5 cents per share optimistic case. Our target price of 11 cents per share sits at the midpoint of our DCF range.

You can download a copy of NDF Research's update report on Resonance Health by clicking here or visiting We commend the update report to you. Our initiation report from December 2016 is available here.

1 stock mentioned

Stuart Roberts
Founder and Senior Analyst
Pitt Street Research and NDF Research

I am an equity research professional who worked in stockbroking from 2001 to 2015. After 15 months doing investor relations I returned to equity research with the founding of NDF Research. With Marc Kennis I founded Pitt Street Research in July 2018.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

trending on livewire
Get the best of Livewire by signing up to our popular daily newsletter