Advantages of Bionik's ARKE
Bionik has one lead product in development, a lower body exoskeleton called ARKE. At first glance, Bionik may seem a little behind the curve that ReWalk is spearheading, with ARKE currently still in clinical development and not yet generating revenues for the company. However, the ARKE has some advantages over ReWalk, in addition to the fact that Bionik's being behind in clinical development may actually work to its advantage.
As ReWalk is demonstrating, it is a drawn out and costly process to forge a new industry. ReWalk is bearing the brunt of this cost with its current revenue generation efforts, and Bionik may benefit from a slightly later entry into a somewhat more established space. The company reported a net loss of $2.4 million last quarter, but raised $13 million earlier this year and as a result, shouldn't have any issues carrying through to production, which just began in mid September.
Bionik's advantages over ReWalk are, first and foremost, its technology. The ReWalk system is based on 2001 technology, while the ARKE operates on modern software. Second, the ARKE has a targeted price point 33% lower than the ReWalk. The ReWalk retails for about $75,000 while the ARKE is targeting $50,000. A third advantage may be its executive staff. Bionik's CEO Peter Bloch was the CFO and once the Co-CEO of Sanofi Canada, with extensive knowledge of the connection between healthcare and the medical insurance industry. Cultivating relationships with insurers will be key for any company in this space, and Bionik's top executive comes from that very background.
