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Cardio Diagnostics' study shows cost savings with new CHD test

EditorBrando Bricchi
Published 30/04/2024, 18:58
CDIO
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CHICAGO - Cardio Diagnostics Holdings, Inc. (NASDAQ: CDIO) has announced the publication of a study indicating its PrecisionCHD™ test could significantly reduce healthcare costs for coronary heart disease (CHD). The study, published in Advances in Therapy, suggests that the AI-powered multiomic DNA test may save up to $113.6 million annually for a health plan with one million members.

PrecisionCHD™ uses a combination of epigenetic and genetic biomarkers, analyzed through proprietary AI algorithms, to detect stable CHD. The test, which evaluates six DNA methylation and ten genetic biomarkers, has reported sensitivity and specificity rates of 79% and 76%, respectively.

The study's budget impact model compared PrecisionCHD™ with traditional tests like exercise electrocardiograms, coronary computed tomography angiography (CCTA), and angiograms. Results indicated that PrecisionCHD™ could lead to significant cost savings for payers, driven by the test's lower cost and reduced need for follow-up testing. These savings were consistent across various patient demographics and insurance plan designs.

David Frisvold, PhD, Associate Professor at the University of Iowa and lead author of the study, stated that broader use of PrecisionCHD™ could lead to increased access to care and improved patient outcomes. The test's multimodal delivery, including telemedicine and at-home blood sample collection, could further enhance its cost efficiency and accessibility.

The American Medical Association has awarded PrecisionCHD™ a Current Procedural Terminology (CPT) Proprietary Laboratory Analyses (PLA) code, effective April 1, 2024, and it has also received an Innovation Technology contract from Vizient, a large group purchasing organization.

PrecisionCHD™ provides a scalable and less resource-intensive alternative for initial CHD detection, avoiding risks associated with radiation and contrast dyes. It aligns with the industry's shift towards precision medicine and value-based care (VBC) models, which aim to improve patient outcomes while managing costs.

Cardio Diagnostics, a company focused on AI-powered precision cardiovascular medicine, believes that PrecisionCHD™ will benefit healthcare stakeholders, including patients, providers, and payers. The study's findings are based on a press release statement and reflect the company's commitment to improving cardiovascular disease prevention, detection, and management.

InvestingPro Insights

Cardio Diagnostics Holdings, Inc. (NASDAQ: CDIO) has recently made headlines with its PrecisionCHD™ test, which shows potential in reducing healthcare costs for coronary heart disease. While the medical community may find this news promising, investors are looking at different metrics to evaluate the company's financial health and stock performance. According to InvestingPro data, Cardio Diagnostics has a market capitalization of 14.9 million USD, indicating it is a smaller player in the market. Despite the potential for sales growth, the company is not expected to be profitable this year, as reflected by a negative P/E ratio of -1.68 for the last twelve months as of Q1 2023. This suggests that the company has not generated positive earnings in the recent period.

The stock has experienced significant price volatility, with a 6-month total return of 201.44%, yet it has seen a substantial decline of 70.26% over the last year. This could be a point of concern for investors considering the company's long-term performance. Additionally, the Revenue Growth metric shows an impressive increase of 1696.32% in the last twelve months as of Q1 2023, illustrating a surge in the company's sales. However, this should be viewed in the context of the company's overall financial health, including its cash burn rate and profitability outlook.

InvestingPro Tips highlight that the stock price has been quite volatile and has taken a significant hit over the last month. This aligns with the company's recent price performance, which has seen a one-month total return of -51.41%. The Relative Strength Index (RSI) suggests that the stock is currently in oversold territory, which could be of interest to investors looking for potential buying opportunities.

For those interested in a deeper analysis, there are additional InvestingPro Tips available, which can provide further insight into Cardio Diagnostics' financials and stock performance. To explore these tips and make more informed investment decisions, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at Investing.com/pro/CDIO.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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