Echo IQ Secures $20m Pro Medicus Deal and $110m Placement to Boost US AI Cardiovascular Growth

Strategic Partnership with Pro Medicus Sets Stage for US Market Leap

Echo IQ (ASX:EIQ) has struck a binding Heads of Agreement with healthcare imaging giant Pro Medicus (ASX:PME), securing a proposed $20 million investment and a commercial reseller partnership aimed at accelerating US adoption of its EchoSolv AI platform. The initial $10 million investment will come via secured convertible notes, with a further $10 million tranche contingent on FDA clearance of EchoSolv HF, the company’s heart failure diagnostic tool currently under regulatory review.

Beyond capital, the partnership offers Echo IQ access to Pro Medicus’ expansive US enterprise medical imaging network, spanning major health systems and academic medical centres. Echo IQ’s CEO Dustin Haines highlighted this as a "significant milestone," enabling the company to leverage one of the world’s leading imaging platforms to fast-track commercial adoption across some of the largest and most sophisticated US healthcare providers.

$110 Million Placement Fuels US Expansion and Product Development

Backing this commercial push, Echo IQ completed a strongly supported ~$110 million institutional placement post-quarter, drawing interest from both domestic and international investors. The fresh capital bolsters the company’s balance sheet, underpinning expansion of its US commercial organisation, implementation capabilities, and customer success teams.

Funds will also accelerate R&D efforts, including plans to double research capacity and broaden the EchoSolv cardiovascular AI platform. This sizeable raise reflects growing market confidence in Echo IQ’s technology and strategy as it seeks to establish a leading position in AI-enabled cardiovascular diagnostics.

US Commercial Pipeline Expands with Enterprise Opportunities

Commercial momentum is evident in Echo IQ’s US pipeline, now engaging over 70 hospitals across various sales stages. Notably, three major enterprise proposals collectively represent more than 300 hospitals, highlighting the potential scale of adoption. The company has introduced innovative deployment programs; EchoSolv VIEW and EchoSolv SHADOW; that allow hospitals to trial the technology using historical data or run it alongside existing workflows, reducing barriers to adoption.

These programs have driven a five-fold increase in hospitals reviewing pricing proposals quarter-on-quarter. Echo IQ also unveiled a streamlined installation pathway that simplifies technical integration, aiming to accelerate deployment and revenue recognition. This approach aligns with the company’s land-and-expand strategy, where initial site deployments pave the way for enterprise-wide rollouts across integrated care networks.

EchoSolv AS Usage Surges as Clinical Adoption Accelerates

Usage of EchoSolv AS; the company’s AI tool for assessing severe aortic stenosis; continues to climb sharply, with over 10,200 echocardiograms processed during the quarter. This marks a 20% increase quarter-on-quarter and more than 400% growth compared to the prior year. Cumulative usage in 2026 has surpassed 20,000 scans, underscoring a transition from customer acquisition to sustained clinical utilisation.

Higher processing volumes not only validate the platform’s scalability but also deepen customer engagement and generate real-world evidence to support broader enterprise deployments. Echo IQ views echocardiogram processing as a key leading indicator of recurring revenue growth and market penetration.

Exclusive Data Licensing Deal with Advara HeartCare Enhances AI Development

Shortly after the quarter, Echo IQ secured an exclusive data licensing agreement with Advara HeartCare, Australia’s largest private cardiovascular provider, granting access to between 500,000 and 1 million deidentified echocardiography studies along with linked clinical data. This dataset, combined with the company’s existing collaboration with the National Echo Database Australia, forms a comprehensive cardiovascular AI ecosystem.

The Advara partnership significantly strengthens Echo IQ’s AI training and validation capabilities, supporting future product innovation and competitive differentiation. This move complements the company’s US commercial ambitions by underpinning next-generation AI-powered cardiovascular diagnostics.

Research Collaboration with Mayo Clinic Targets Cardio-Oncology Market

Echo IQ also expanded its research footprint through a collaboration with Mayo Clinic to evaluate its AI platform’s ability to predict heart failure risk in cancer patients undergoing therapy. This study addresses the growing cardio-oncology sector, where early detection of treatment-related cardiovascular complications is critical amid rising cancer survival rates.

Results are expected in the first half of 2027 and could support future product expansion into new clinical applications, further broadening the company’s addressable market.

Regulatory and Reimbursement Developments Provide Potential Catalysts

Echo IQ’s EchoSolv HF submission remains under FDA 510(k) review, though industry-wide delays due to resource constraints have extended timelines. FDA clearance would mark a major commercial catalyst, enabling a broader AI cardiovascular platform and deeper customer integration.

Meanwhile, the US Centers for Medicare & Medicaid Services (CMS) proposed an interim payment policy for Software as a Medical Service (SaMS) technologies, aligning with Echo IQ’s reimbursement strategy. If finalised, this framework would offer clearer interim reimbursement pathways for AI-powered clinical software, potentially easing hospital adoption hurdles for FDA-cleared products like EchoSolv.

Leadership Strengthened as Echo IQ Prepares for Growth Phase

Echo IQ has bolstered its executive team with the appointment of Matthew Dodds as Chief Financial Officer. Dodds brings extensive healthcare and capital markets experience, including senior roles at LivaNova and Johnson & Johnson Medical Devices, enhancing the company’s financial leadership as it scales US operations.

Additionally, the company has expanded its clinical advisory network with leading cardiovascular specialists, reinforcing product development and commercial execution efforts.

Financial Position Supports Strategic Priorities

At quarter end, Echo IQ held $8.7 million in cash and equivalents, a figure bolstered post-period by the $110 million placement and Pro Medicus investment. Operating cash outflows of $2.7 million for the quarter reflect ongoing investment in commercial expansion and R&D.

These funds provide a runway of approximately 3.2 quarters at current burn rates, positioning Echo IQ to pursue its US commercial rollout, regulatory milestones, and platform growth initiatives.