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Painchek (ASX:PCK), a company once developing medical devices (read: apps) that allowed users with limitations to self-report pain, but which has since turned towards the aged care market, has seen support for its value prop in that latter case on the back of a Scottish trial that used its ‘PainChek Adult App’ in the “Scottish care system.”
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According to the company, an “independent evaluation” from Edinburgh Napier University has confirmed “outstanding” benefits from using the app, which included a 40% reduction in falls and a 25% reduction in the use of painkillers, as well as a decline in the use of antipsychotics. In between the lines, the company is focusing on patients with dementia.
While shareholder enthusiasm on Wednesday was muted, the company reckoned this was further supporting evidence of the company’s overall proposition, noting it already has commercial licences covering more than 42K aged care beds in the U.K. across 1,000 care homes.
That, in PainChek’s own words, leaves it “well placed to commercially capitalise on [Wednesday’s] compelling data.” While coverage over 1,000 aged care homes is a promising metric, meaningful revenues remain elusive.
And as for price action, while Wednesday’s news mightn’t be an FDA approval, for which the company has been angling since early October 2024, it’s another hatfeather.
For those scrupulous investors who bothered to read the report, one risk factor could be a small sample size – data reported on Wednesday was based on an online survey for which “the target was 50 social care staff and 10 carers for the online survey, and 12 social care staff and 3 carers for the key informant interviews.”
Still, if you’re willing to look past the stock’s liquidity issue (and that the stock has 2B shares), 1Y returns are up +50% and YTD gains sit higher at +75%.
PCK last traded at 5cps.
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