AI Healthcare Partnership
Pro Medicus to Invest A$20M in Echo IQ, Accelerating US AI Diagnostics Expansion
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Key Points
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The convertible notes are secured over all Echo IQ assets, with specific security granted over its aortic stenosis and heart failure algorithms.
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The second A$10 million tranche is contingent on FDA clearance for EchoSolv HF and, notably, Pro Medicus has an option to invest rather than an obligation, exercisable within 12 months after clearance.
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Under the US reseller arrangement, Echo IQ would gain access to Pro Medicus’ extensive US health-system network—including academic medical centers and enterprise customers—via the Visage 7 Cardiology platform.
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Echo IQ is described as fully funded to support US commercialization activities, signaling strong capital backing for the US expansion.
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Definitive legal documentation is required within 20 business days, with the deal potentially lapsing if not executed in that window.
Pro Medicus (ASX: PME) has signed a binding agreement to invest up to A$20 million in AI cardiology company Echo IQ (ASX: EIQ), pairing the cash injection with a US reseller partnership that gives Echo IQ access to Pro Medicus's network of American health systems, according to Motley Fool Australia. The deal starts with a A$10 million tranche of secured convertible notes and includes an option — not an obligation — for a further A$10 million if Echo IQ's EchoSolv Heart Failure product wins FDA clearance.
PME shares climbed 2.05% to A$182.66 on the news, while Echo IQ stock has surged 371% year-to-date, per Grafa. Definitive legal documents must be signed within 20 business days or the deal lapses entirely.
A$10 Million in Notes Secured Against Echo IQ's Core IP
The first A$10 million flows to Echo IQ through secured convertible notes carrying a 12.5% interest rate, according to Stocks Down Under. Those notes are secured over all Echo IQ assets — specifically its aortic stenosis and heart failure algorithms. That structure gives Pro Medicus strong downside protection if Echo IQ struggles to reach profitability on its own.
The second A$10 million is an option Pro Medicus can exercise within 12 months of FDA clearance for EchoSolv HF (Heart Failure). Echo IQ submitted its FDA 510(k) application for EchoSolv HF on January 30, 2026. Its earlier aortic stenosis product, EchoSolv AS, already received FDA clearance in October 2024, per TipRanks.
Pro Medicus Opens Its US Hospital Network to Echo IQ
Under the reseller agreement, Echo IQ's algorithms will be offered inside Pro Medicus's Visage 7 Cardiology platform. That platform already runs at major academic medical centers and enterprise hospital systems across the US. As recently as May 2026, Pro Medicus signed a A$16 million contract with TidalHealth that included the Visage 7 Cardiology module, according to Rask Media.
Pro Medicus CEO Dr. Sam Hupert said the move is "in line with our AI strategy of offering a curated suite of algorithms," adding that Visage 7's future will include in-house, partner-built, and third-party tools like EchoSolv, per Motley Fool Australia. Echo IQ Executive Chair Kim Jacobson said the partnership will "fully fund" US commercial activities.
EchoSolv's Clinical Data Targets a US$70 Billion Market
EchoSolv HF showed 99.5% sensitivity and 91.1% specificity in a validation study of 17,000 echocardiograms run with the Mayo Clinic Platform. Echo IQ already has a clinical presence at Beth Israel Deaconess Medical Center and through the Mayo Clinic's Solutions Studio program, according to Grafa.
The commercial opportunity is large. Roughly 50% of heart failure cases are currently underdiagnosed. Heart failure accounts for 17% of US healthcare spending — part of an estimated US$70 billion annual market. EchoSolv's AI draws on the National Echo Database of Australia, the world's largest echo-linked mortality database, to catch patients missed by standard clinical guidelines.
Analysts Are Bullish but Flag Real Risks Before the Deal Closes
TipRanks holds a Buy rating on both PME (target: A$210.00) and EIQ (target: A$1.50). But analysts at TipRanks warn that Echo IQ still carries negative gross margins and shrinking quarterly revenue. Even with Pro Medicus's endorsement, EchoSolv must "quickly improve sales" to justify EIQ's current market cap of A$812.9 million.
Stocks Down Under describes the broader shift as a "quiet platform pivot" — Pro Medicus moving from a closed-loop software developer into a distribution hub for high-end medical AI. The 20-business-day window for finalizing legal documents is now the single most important near-term milestone. Any slip in that timeline is likely to hit EIQ shares hard.
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