The Future of Healthcare: Treatment AI’s Innovative AI Solutions

We are at the brink of a new industrial era, propelled by the incredible advancements in Artificial Intelligence (AI). This innovative technology is not only reshaping industries but also creating unprecedented opportunities and redefining our understanding of what's possible. Overlooking this AI-driven transformation would be a significant oversight for any savvy investor.
Leading this charge is NVIDIA, a company whose stock has skyrocketed nearly 3,000% in recent years, establishing it as the most valuable publicly traded company in the world. To illustrate, a $1,000 investment in NVIDIA a decade ago would now be worth a remarkable $297,605.
The Exceptional Opportunity with Treatment AI
While industry titans like NVIDIA and Microsoft offer exposure to AI, their massive scale might not appeal to investors seeking substantial returns. Enter Treatment AI (CSE: TRUE | OTC: TREIF), a dynamic and innovative company poised at the intersection of AI and healthcare. Treatment AI not only provides access to the AI revolution but also presents an exciting high-growth investment opportunity in the sector.
The Healthcare Industry’s Urgent Need for AI
Over recent years, AI has been transforming nearly every industry, reshaping our global landscape. However, the healthcare sector has been slow to adopt AI, resulting in outdated systems that struggle to meet the demands of providers and patients. With three in five people worldwide believing their healthcare systems are overstretched, the industry is ripe for disruption.
Accessibility remains a significant barrier. In many regions, healthcare is prohibitively expensive and inaccessible to many, even in well-established infrastructures. Have you ever turned to Google or WebMD when feeling unwell? You're not alone. Millions do this daily, but these tools often lead to misdiagnosis, worsening the problem rather than solving it.
Treatment AI’s Revolutionary Solution
Treatment AI (CSE: TRUE | OTC: TREIF) offers a groundbreaking solution to these challenges. The company has developed an advanced, personalized AI engine that assists doctors in diagnosing patient ailments with greater accuracy and efficiency. Unlike generative models like ChatGPT, TRUE’s AI is non-generative, ensuring it provides fact-based, reliable information that cannot be contaminated.
The AI system is powered by Treatment AI’s proprietary Global Library of Medicine, encompassing data on over 1,000 diseases and more than 10,000 symptoms and risk factors, all derived from real medical tests and peer-reviewed data. This comprehensive database took over five years, approximately $10 million, and the expertise of hundreds of doctors worldwide to build.
Unmatched Diagnostic Accuracy
TRUE’s AI capabilities were rigorously tested by allowing an undergraduate non-medical student to use the software during the OSCE exam—a medical school graduation requirement in 57 countries. The student, using TRUE’s AI, achieved a 92% success rate, correctly diagnosing the “most likely diagnosis” in 11 of 12 complex scenarios and the “second most likely diagnosis” in the remaining case. This demonstrates the software’s exceptional accuracy.
Expansive Market Opportunities
Treatment AI’s market is divided into two segments: 1) ENT for Enterprise and 2) MES for Schools and Educators. Both segments offer vast market opportunities.
Enterprise Solutions with Treatment ENT
Treatment ENT leverages the Global Library of Medicine platform to provide enhanced clinical support to healthcare enterprises and partners. Applications include integration with electronic medical records, health bots, virtual health services, medical call centers, and national triage services. Benefits for enterprises include expanded diagnostic support, seamless integration with existing systems, increased time for patient interactions, and reduced administrative costs. Additionally, Treatment ENT ensures security by operating behind enterprise firewalls and opens new revenue streams by enhancing existing healthcare services.
In the US alone, there are over 6,100 hospitals, 338,000 active physician group practices, and 1.1 million physicians. Globally, these numbers are exponentially larger.
Educational Excellence with Treatment MES
The Treatment MES platform supports medical and nursing schools by streamlining the creation and grading of national exams. It reduces the time, resources, and costs associated with exams such as MCQs and OSCEs while minimizing administrative work. The platform ensures consistency in case testing and scoring, provides suggested remedial guidance, and enhances school PR and intake processes. For students, Treatment MES offers the ability to practice for exams, take continuous remedial actions, and access an authentic, always-available platform, ensuring they are well-prepared for their exams.
In the US, there are over 300 potential medical schools, 900 nursing schools, and hundreds of thousands of students.
Strong Partnerships and a Promising Pipeline
Treatment AI has established several key partnerships leveraging its technology and boasts a robust pipeline of over 50 potential customers starting to sign contracts. This underscores the software’s value to users. Notably, partners include the prestigious Mayo Clinic and the University of Minnesota Medical School, both of which have substantial budgets and could lead to significant contracts.
A recent partnership with the AI tool marketplace aiXplain allows Treatment AI to claim 80% of the revenues, making their software the first healthcare solution on aiXplain’s platform. Additionally, their partnership with Novus Health exposes their software to an audience of 1.5 million members and their families.
Market Comparisons and Valuation
There are few companies like TRUE. The closest comparable in the Canadian public market is HealWELL AI, which has surged over 220% in 2024. Other similar players are mostly private and significantly larger.
In the future, many of these companies are expected to go public with multi-billion dollar valuations, or be acquired. Notable acquisitions in 2023 included NextGen Healthcare and Viewgol, bought at around 2.6 times revenue and 15 times EBITDA, respectively. Health Navigator, a private company similar to TRUE, was acquired by Amazon in October 2023 to support its Amazon Care service. While mergers and acquisitions have slowed recently, a resurgence could spark a re-rating of TRUE shares, especially with new deals or buyer interest.
Comparative Valuation
The only other true comparable for Treatment AI in the Canadian public market is HealWELL (TSX: AIDX). A comparative analysis highlights how undervalued TRUE is.
HealWELL has a market cap of ~$384 million, trading at a 16.5x EV/sales multiple based on projected 2024 revenues. Applying this multiple to TRUE’s projected 2024 revenues of $4.5 million suggests an implied valuation of $1.98 per share, or 103% upside from current prices.
Looking ahead to 2025, TRUE’s revenues are expected to reach CAD$19 million. Using the same 16.5x multiple, the implied valuation would be CAD$6.97 per share, or 1180% upside from current prices, factoring in potential dilution.
This conservative estimate doesn't account for two key factors: All of TRUE’s revenues are AI-driven, which are valued higher than traditional medical service revenues. TRUE’s profit margins (84-95%) are higher than HealWELL’s (70-80%).
Therefore, the actual valuation could be even higher.
High-Margin SaaS Model and New Product Launches
Treatment AI focuses on software subscription revenue, achieving profit margins between 84% and 95%. Without needing to pay providers for user access, more revenue goes straight to the bottom line, benefiting shareholders.
The company plans to launch two new monthly SaaS products: AI Patient for educational purposes and AI Doctor in a Pocket for enterprise use. These high-margin products are poised to quickly generate revenue, offering efficient software solutions to both current and new partners.
Conclusion
Treatment AI (CSE: TRUE | OTC: TREIF) is on the brink of transforming the healthcare industry with its innovative AI technology. By addressing critical diagnostic challenges and offering reliable, fact-based solutions, they are revolutionizing healthcare delivery. Their extensive medical database and proven diagnostic accuracy highlight their potential.
With key partnerships and a focus on high-margin, subscription-based revenue, Treatment AI is positioned for sustainable growth. The dual focus on enterprise and educational sectors opens vast market opportunities, making them an appealing choice for investors. As AI continues to drive advancements across industries, Treatment AI stands out as a leader in healthcare innovation. Their dedication to improving patient care and strategic market positioning ensures they are not just part of the AI revolution—they are leading it. For investors seeking significant returns and a stake in the future of healthcare, Treatment AI offers a compelling opportunity.
