QMed Innovations is a wireless asset management and data aggregation company formed to develop and commercialize technologies that enable medical device manufacturers, hospitals, labs, and distributors to track surgical trays and instruments, manage inventories, and mitigate loss and expense of inefficiency in the manufacturer to surgical procedure value chain.
QMed Innovations, Inc. has patented technology to track medical device kits with its Quest product, which is a hardware and software solution sold to other companies in the medical device industry. The company’s flagship Quest product offers stakeholders 100% asset visibility, optimized inventory, and capital investment in healthcare surgical environments. It is one of the only autonomous Cellular IoT solutions designed to withstand the rigors of asset processing in healthcare surgical environments. Quest analytics aims to provide daily location updates, historical inventory data, and maintenance tracking; enable ease of regulatory compliance; and enhance recall management. The company’s business model includes an initial trial or test period which provides the customer field use of a sufficient amount of Quest devices and then the company works with these customers to develop a deployment schedule for additional devices sufficient to meet their inventory requirements. The revenue model is license and SaaS-based. The company uses licensing fees and volume of orders to fix the monthly SaaS fees. The contract term is typically 3 years. The primary customers for Quest products are OEMs and distributors.
The orthopedic devices market is approximately $28B in the United States, inclusive of joint reconstruction, spinal devices, trauma devices, arthroscopy devices, and orthobiologic devices throughout in over 6,000 hospitals, clinics, labs, and ambulatory surgical centers. Proprietary instrument kits (surgical tools) are used for every surgical case. The global surgical kits market accounted for revenue of $18B in 2022 and is projected to increase to $22.5B by the end of 2026, representing a CAGR of 6.6% for the forecast period. Given the augmenting number of surgeries due to the increasing prevalence of orthopedic disorders and traumatic injuries and the rapid rise in the aging population, the market for surgical tool management is expected to grow.
The product is fairly new in the market and has entered into trials with several of the industry’s largest and key firms including initial orders from Anika, Accelus, Innovasys, and Medtronic. The company had revenue of $57.27k in 2022 against $16.82k in 2021. The gross margin was 80.48% in 2022 as compared to 46.87% in 2021. The net loss stood at $3.12M in 2022 and $1.69M in 2021.