LBT Innovations

BRENT BARNES

CEO & MANAGING DIRECTOR

(ASX:LBT)

◾ Company Name: LBT Innovations ◾ Company ASX code: LBT ◾ Key areas: Medical devices, diagnostics ◾ Key Personnel: Brent Barnes, CEO & Managing Director | Ray Ridge, Company Secretary & CFO ◾ Locations: Adelaide, South Australia, United States, Europe ◾ Market Cap as of 15/09/22: $26.97M ◾ 52 Week share price as of 15 September: $0.064 - $0.158 ◾ Company Website: lbtinnovations.com

COMPANY PROFILE

LBT Innovations uses disruptive artificial intelligence (AI) and intelligent imaging technology to automate the imaging, analysis, and interpretation of culture plates for busy microbiology laboratories.

Currently, around 70% of clinical decisions are based on in vitro diagnostic lab results and thousands of plates are assessed each day by busy microbiologists for the presence of clinically significant bacterial colonies, which can result in human error and extensive delays.

The company’s Automated Plate Assessment System (APAS) Independence automatically screens, interprets and sorts these plates, overcoming the bottleneck in lab workflows and freeing up microbiologists’ time. And the AI tech has been clinically proven to go beyond being purely assistive.

Through extensive clinical trials, LBT has demonstrated the system’s ability to accurately detect the presence of significant disease-causing pathogens on a variety of culture mediums.

This means major time savings for busy laboratories and microbiologists, along with faster, more accurate results for doctors and their patients.

Plus, the APAS platform is the only United States Food and Drug Administration (FDA)-cleared AI technology for automated imaging, analysis and interpretation of culture plates following incubation.

Last year, LBT’s joint venture company (which it now owns 100%) Clever Culture Systems (CCS) received 510(k) clearance for the APAS Independence with MRSA analysis module as a Class II medical device.

MRSA – which stands for Methicillinresistant Staphylococcus aureus – is one of the leading causes of multidrug resistant infections, with patients suffering from MRSA infections around 64% more likely to die than people with drug sensitive infections.

The company now has regulatory cleared analysis modules covering the largest two specimen types by volume – Urine and MRSA – meaning they are able to sell the modules commercially to customers in the United States.

Each analysis module is sold to customers under a separate software licence and is available to customers as a software upgrade, which enables laboratory customers to customise the configuration of the APAS Independence for their laboratory workflow and range of specimens – as well as increasing the revenue opportunity for each APAS instrument sold.

Pursuing FDA clearance was widely considered to be a smart move, especially since the United States has over 5,000 clinical laboratories, representing the single largest market in the world for the LBT’s product.

In fact, the company estimates that the addressable market for the platform in the United States is over 1,500 laboratories – and it’s already making sales.

During the June Quarter 2022, four APAS Independence instruments were sold following shipment to Thermo Fisher, with a fifth instrument scheduled for shipment in August.

LBT says commercial activities have continued to accelerate under the expanded sales reach of Thermo Fisher – who have an existing portfolio of microbiology products in the US and an established network of sales representatives with existing customer relationships across several large clinical microbiology laboratories.

In Europe, LBT’s channel partner is Beckman Coulter, Inc, and the aim is to advance sales opportunities following recent evaluations completed by customers in the UK, Germany and France.

LBT is confident that APAS’s revolutionary platform technology for intelligent image interpretation also offers potential for multiple applications across all of microbiology, including both clinical and non-clinical applications, such as, food, water and pharma, just to name a few.

KEY INVESTMENT HIGHLIGHTS

JANUARY 4, 2022: Completed acquisition of remaining 50% shareholding of the Clever Culture Systems joint venture, expected to accelerate time to breakeven for the Company. AUGUST 10, 2022: Exciting new product pipeline increases market opportunity, including expansion into Pharma industry vertical with major multinational partner. AUGUST 31, 2022: 7 sales completed so far in CY2022 (worth >US$350k per instrument). Market traction building follows appointment of Thermo Fisher, exclusive US distributor.