ImpediMed Limited (IPD) – SOZO is the go

ImpediMed is a medical technology company that uses bioimpedance spectroscopy (BIS) technology to generate data that is used to improve patient health. Its key product is the SOZO Digital Health Platform, which has been approved by the health and regulatory authorities in the US, Europe and Australia. Its use is approved for multiple indications, including lymphoedema, heart failure, and protein calorie malnutrition.
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FY24 was a transformational year for IPD (reimbursement step-change, governance renewal, strategy reset) and while growth in the US installed base has been below market expectations so far, Ord Minnett views the company as well-positioned for an inflection point in FY25.
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June-quarter unit sales, revenue and cash flow were broadly in-line with our forecasts with some positive momentum emerging on key metrics, e.g. renewal pricing and contract wins with integrated delivery networks. We have made minor tweaks to our operating assumptions and now forecast trough cash of $11m in FY26, with free cash flow accelerating materially there after. We continue to view IPD’s technology and market opportunity positively, with operating momentum set to accelerate in FY25.
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Feedback from tier 1 cancer centres in the US has consistently highlighted reimbursement as the single biggest driver for BIS adoption. We expect IPD to achieve critical mass across the balance of its key markets in FY25E.
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We maintain our Speculative Buy recommendation and target price of $0.15. Key risks to our valuation include installed base growth rates, reimbursement coverage, and access to funding.

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