Trial success may open up options for BPH

By Trevor Hoey. Published at Jul 3, 2019, in ASX Biotechs

BPH Energy Ltd (ASX:BPH) has provided a promising update relating to further trials for the BARM System of investee Cortical Dynamics Ltd.

The Brain Anaesthesia Response (BARM) system measures a patient’s brain electrical activity, the electroencephalogram (EEG), in order to indicate how deeply anaesthetised a patient is during an operation via an adhesive sensor applied to the forehead.

The BARM System is designed to assist anaesthetists and intensive care staff in ensuring patients do not unexpectedly waken, as well as reducing the incidence of side effects associated with the anaesthetic.

The BARM System is protected by five patent families in multiple jurisdictions worldwide through 22 granted patents.

Trials in Australia and the UK

In an important development, the Sydney Adventist Private Hospital in Sydney has commenced trialling the BARM system.

The trial will continue through to the second week of July 2019.

BARM is also gaining international recognition with LiDCO Ltd UK, preparing to trial the system at Southampton University Hospital during the period July to September 2019.

In the UK, the LiDCO Group has a leading market share, with over 50% of NHS acute care hospitals using its technology.

This comes on the back of successful trials of the BARM system at St. Luke’s Private Hospital and the Strathfield Private Hospital in Sydney in late 2018.

At that stage the technology had been used with 109 patients at the hospitals and it was found to meet the three main purchasing requirements, being the provision of technological benefits, clinical benefits and cost effectiveness.

Trial success could open up opportunities for BPH

BPH’s investments in Cortical are via a convertible notes with interest accruing at rates between 8% and 9.4%.

A facility of $500,000 has a termination date of 19 November, 2019, and a $1 million facility has a termination date of 28 February, 2020.

BPH could also exercise an option to convert the financial liability into equity in the group, underlining the significance of these trials in terms of shaping the company’s strategy in fiscal 2020.

From an operational perspective, Cortical is focused on commercialising the intellectual property developed at Swinburne University.

The core product, the Brain Anaesthesia Response (BARM) System has been developed with the objective of better detecting the effect of anaesthetic agents on brain activity, aiding anaesthetists in keeping patients optimally anaesthetised.

The Brain Anaesthesia Response (BARM) System.

The BARM System improves on currently used EEG technologies by incorporating the latest advances in its understanding of how the brain’s rhythmic electrical activity, and how the EEG is produced.

The approach used is fundamentally different from all other devices currently available in the market in that its underlying algorithm produces EEG indexes which are directly related to the physiological state of the patient’s brain.

Global brain monitoring market approaching $1.6 billion

According to Cortical Dynamics, the global brain monitoring market in 2012 was valued at $1.08 billion and is poised to reach $1.63 billion by 2020.

The global brain monitoring devices market is broadly segmented into three categories based on its product, application, and end-user.

Fuelling market growth are the various technological advancements which are leading to high functionality, lower costs, ease of operation, and miniaturization of devices.

Cortical will initially focus on the Total Intravenous Anaesthesia (TIVA) market within Europe.

TIVA provides a method of inducing and maintaining general anaesthesia without the use of any inhalation agents.

Assessment of anaesthesia related risks

The English healthcare body NICE (National Institute for Health and Care Excellence) has recommended EEG-based depth of anaesthesia monitors as options in patients receiving TIVA and in patients who are considered at higher risk of adverse outcomes during any type of general anaesthesia.

This includes patients at higher risk of unintended awareness and/or excessively deep anaesthesia.

It has been estimated that approximately 29 million major general surgery general anaesthesia’s are conducted in the European Union each year, of which 55% are balanced anaesthesia (using a combination of intravenous agents such as propofol and volatile gases), and 20% are total intravenous anaesthesia (TIVA) using propofol.

In Italy, the Society of Intravenous Anaesthesia has reported that TIVA usage has already reached 40% of all anaesthesia procedures.

Emergence of new markets

Cortical’ s technology has a versatility that goes beyond depth of anaesthesia and may be applied to other EEG-based markets, such as neuro-diagnostic, drug discovery, drug evaluation and the emerging Brain Computer Interface (BCI) market.

There are considerable opportunities offered by subsequent expansion of the company’s core technology through developing the product to carry out additional functions including neuro-diagnostics of changes in brain and memory functions to provide early warning of degenerative diseases, pain response and tranquilizer monitoring for trauma patients in intensive care units.

While a number of EEG monitors are commercially available, one that is reliably able to quantify the patient’s anaesthetic state is still desperately needed.

The specific advantages of Cortical’s BARM system over all other competing systems include its production of EEG indexes which are based on physiological mechanisms direct from the patient, unlike other systems on the market which produce EEG indexes based on statistically based empirical approaches.

This provides a fundamental differentiation from competing technologies, indicating that successful adoption could see the emergence of a proprietary technology in an industry segment with high barriers to entry.

One of the other compelling characteristics of the BARM is that it produces a reading within three seconds of start-up and an updated reading every second thereafter, compared to 30 second updates on competing systems.

The technology has also demonstrated its ability to monitor hypnosis and analgesia independently by EEG.

These characteristics afford much greater sensitivity, allowing the monitor to identify changes in brain function and detect several classes of anaesthesia and other brain disorders.

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!