Blinklab (ASX:BB1): Is this exciting company the next ResApp?

Blinklab (ASX:BB1), the conclusion to the response to a question of how you could help children with autism – a response that begins with ‘there’s an app for that’.

There is precedent for app-based health companies to succeed, just look at ResApp (ASX:RAP) which was bought by Pfizer for $179m back in 2022. The former chairman of that company was Brian Leederman…and after roughly 15 months in relative obscruity, has stepped back into the world of ASX biotechs and joined the board of this company too. Could lightning strike here too?

Blinklab: Fresh out of Princeton

BlinkLab’s technology originated out of neuroscience researchers at Princeton University. The founders received a US$150k grant in 2020 to develop the technology, and the company BlinkLab was incorporated in 2021 with A$1.3m in seed capital, following Princeton granting the company an exclusive license agreement.

BlinkLab has an e-platform that can help diagnose neurological disorders in children such as ADHD and autism. The device consists of a mobile app to collect Data and a Portal to analyse the data and to customise the tests. Although it is not yet FDA approved, BlinkLab has completed roughly 6,000 individual tests.

Keep in mind that this is a specific check for these conditions as opposed to a general subjective judgement. It will certainly be cheaper than the typical $1-5k cost for a typical evaluation. The test makes a judgement by biomarker detections, evaluating brain function, computer vision and facial reflexes in response to visual and auditory stimuli.

So what is there to look forward to?

The company aims to conduct a clinical trial to obtain FDA approval, followed by CE Mark approval in Europe. It plans to commence the trial later this year and it will examine the ability of the app to diagnose autism in children between 2 and 6 years of age.

BlinkLab signed a deal with Dutch company INTER-PSY to run the study and do so on patients referred to it. It is planned for enrolment to start before this year is out and then for the company to make its case to the FDA in mid-2025, which may facilitate approval in the first quarter of 2026. All the while, the company will lay the groundwork for a commercial launch, including seeking reimbursement code and support from Key Opinion Leaders.

Brian is back

We mentioned Brian Leedman above and his role with ResApp (ASX:RAP), which was a smartphone app that could diagnose respiratory diseases based on a cough and was bought by Pfizer in 2022. Leedman has come onto the board of BlinkLab in early 2024. Another noteable board member is Jane Morgan, the boss of IR firm Jane Morgan Management. Princeton’s team are still involved in the company too.

A big opportunity

As we mentioned above, a typical diagnosis costs $1-5k and is ultimately just one person’s judgement. It can take many months and may not even be recommended to be undertaken until a child is 5 years old, which is generally considered too late for effective therapeutic treatment.

Autism prevalence has grown to 2-4% among children and expenses are soaring – $60k during childhood and $3.6m for a lifetime for individuals with conditions on the autism spectrum. Blinklist can ease the burden by diagnosing children as young as 18 months of age and doing so accurately, thus paving the way for early intervention.

Blinklist is big risk, but one that could payoff

The key risk with this one is that the clinical trial is not a success and or that the app may need refining. Even though the story of ResApp had a happy ending, there were plenty of twists and turns along the way including a failed clinical trial in 2017. Even the Pfizer takeover was not all smooth sailing, with the deal price being reduced after pre-acquisition testing failed to meet the thresholds specified under the acquisition terms, and the deal was repriced from 20.7c per share to 14.6c per share.

But if the company can pass the clinical trial, and potentially even bring it to market, the return for shareholders will be lucrative.

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