Algernon Announces CAD $4 Million Non-Dilutive Financing to Open Four Brain-Specific PET Scan Clinics in the U.S. for Early Stage Alzheimer’s Detection

Core Insights - Algernon Pharmaceuticals has signed a definitive equipment order and financing agreement with Catalyst MedTech for four FDA-cleared Oncovision CareMiBrain™ PET scanner systems, valued at over CAD $4 million, to be used in planned neuroimaging clinics [1][2] - The PET scanners will primarily focus on early-stage detection of Alzheimer's Disease and other neurological conditions, addressing a significant market need [3][4] Financial Terms - The financing agreement includes a 20% deposit, monthly payments at an average annual interest rate of 7%, and a balloon payment after two years [2] - The PET scanner costs represent approximately 80% of the capital required to open a neuroimaging clinic, making this transaction crucial for the company's initiative [2] Market Opportunity - The global economic burden of Alzheimer's was estimated at US$1 trillion in 2019, projected to rise to US$10 trillion by 2050, indicating a substantial market opportunity for Alzheimer's diagnostics and treatment [4] - The recent FDA approval of new Alzheimer's therapies requiring brain-specific PET scans has created a billion-dollar market opportunity in this sector [4] Clinic Operations - The new clinics will be the first dedicated brain-specific PET neuroimaging facilities in the U.S., focusing on early detection of Alzheimer's and other neurological disorders [3] - Each Alzheimer's PET brain scan will cost approximately US$5,000, covered by private insurance, Medicare, and Medicaid [6] Strategic Partnerships - Catalyst MedTech is a leading provider of molecular imaging technology and has secured exclusive distribution rights for the CareMiBrain™ system in the U.S. [7][16] - The partnership will enhance patient access and experience while reducing radiation exposure by up to 25% compared to traditional PET/CT units [8][11] Future Plans - Algernon plans to expand its network of neuroimaging clinics across North America and will soon announce the location of its first U.S. flagship clinic [13] - The company is also changing its name to Algernon Health Inc. to better reflect its focus on Alzheimer's diagnostics [13]