2 of the most innovative ASX companies you might not have heard of

In 1983, in Melbourne, a radiology software company was founded to zero fanfare. That same company listed on the ASX on October 10, 2000 – once again, to little pomp.

Today, that company – despite a recent selloff in the share price – has a market cap around $20 billion. It has made its founders and many of its shareholders incredibly wealthy.

It has only really been discussed with any degree of regularity since 2016, when it was trading around $5 per share, and it might fairly have been considered a market darling since 2019, when it was trading around $20. It peaked near $300 earlier this year.

If you haven’t figured it out already, the company that I speak of is Pro Medicus (ASX: PME).

Why do I highlight it? Well, for the best part of three decades, hardly anyone knew this company existed. Then, in less than 10 years, it exploded onto the scene.

The Pro Medicus story is now quite mature. So how do we find the next one? How do we find those companies with incredible potential, doing something innovative, cutting-edge, and disruptive – or all three?

To help with the search, I reached out to Joel Fleming from Yarra Capital Management and Shaun Weick from Wilson Asset Management.

Below they each share an exciting ASX name that you might never have heard of.

DIMERIX (ASX: DXB) - JOEL FLEMING - YARRA CAPITAL MANAGEMENT

What is the company and what is it doing?

Dimerix is a biotech company with a market cap of $230 million, currently conducting a Phase 3 clinical trial for a treatment targeting focal segmental glomerulosclerosis (FSGS), a rare kidney disease that attacks the kidney’s filtering units, leading to irreversible damage and eventual kidney failure. With no approved treatments available, the company has secured orphan drug designation from both the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA), supporting the development of therapies for rare diseases.

How could it change people's lives?

Successful drug development can be life-changing for those suffering from a disease, particularly when no other treatment options are available. 

It is meaningful not only for patients but also in helping to reduce the burden on the global healthcare system. Success in rare diseases can also pave the way for further scientific breakthroughs and deeper understanding.

Why do you like it?

I also like the near- and medium-term news flow around FDA updates, potential licensing deals and the longer-term trial results.

What needs to happen for it to go to the next level?

We also see near-term positive catalysts before reaching this decision point. Recent discussions with the FDA will either confirm the status quo of the current trial or introduce the potential for modified endpoints and accelerated approval.

The company has signed three licensing deals to date, but large market opportunities in the US and China remain unlicensed. Securing agreements in these regions represents a significant opportunity for the business and would further validate its potential. Positive changes to trial endpoints and additional licensing deals are likely to be well received by investors.

What are the risks to the thesis?

Dimerix is fast approaching a pivotal decision point, where failure to meet its primary endpoint could result in significant value destruction. We remain optimistic based on the promising data observed so far. Our investment process is based on carefully balancing potential upside with substantial risks while adjusting our position size to manage exposure accordingly.

CATAPULT GROUP INTERNATIONAL (ASX: CAT) - SHAUN WEICK - WILSON ASSET MANAGEMENT

What is the company and what is it doing?

Catapult exists to unleash the potential of every athlete and team on earth. Operating at the intersection of sports science and analytics, Catapult products are designed to optimise performance, avoid injury, and quantify return to play. The business is listed on the Australian Securities Exchange, with more than 400 staff across 24 locations. It works with over 4,400 teams in over 40 sports globally, including the NFL, EPL, MLB, NHL, AFL, and NCAA.

How could it change people's lives?

Catapult’s product suite spans wearable tracking devices, athlete management platforms and video analysis tools. 

It changes the way athletes train and perform on match day, aiming to deliver the extra “1%” that could mean the difference between winning and losing in elite sport.

Why do you like it?

We believe the company has reached an inflection point. Catapult has exited a heavy investment phase, resulting in a significantly enhanced product suite that will likely drive accelerated customer adoption. 

The product is sticky, and the “land and expand” strategy adopted to date means pricing power remains underutilised.

Four years ago, management set a target to 10x annual contracted value (ACV) over the medium-to-long term, with ACV being a direct proxy for revenue growth. Since then, they’ve achieved a 5x uplift. At the March 2025 investor day, they outlined a blueprint to grow ACV a further 10x to ~US$1 billion.

Importantly, the cost base appears largely fixed, with significant operating leverage expected over the medium term as the company targets the “Rule of 40+”.

Catapult has now passed its positive free cash flow (FCF) inflection point and is, in our view, in the strongest position it’s ever been to grow and deliver shareholder returns — yet it still trades at a significant discount to listed peers. With ASX-listed tech companies continuing to be consolidated, we believe Catapult is a standout opportunity.

What needs to happen for it to go to the next level?

Catapult currently services over 4,400 pro teams out of a total addressable market (TAM) of 20,000. With only approximately 25% of that market using wearables today, adoption is still in its early stages. The company expects a disruptive event where data becomes central to day-to-day decision-making in elite sport — a shift that could double the market to approximately US$72 billion over the next five years.

To hit the US$1 billion ACV target, Catapult will need to double its customer base and increase the average invoice value fivefold — via upselling, new features, pricing increases and integration of third-party products. 

Confidence in achieving this stems from:

• Its leadership in the wearables market;
• Accelerating cross-sell of video products (19% of pro teams used multiple products in 1H’25); and
• The relatively low effort required to maintain a competitive edge.

What are the risks to the thesis?

Volatility in the global macroeconomic environment is a factor that should be considered, particularly in how it may affect spending within sport. However, we believe Catapult is largely unaffected, with investment into sport continuing to rise rapidly.

Sports content enjoys very high engagement, making it extremely valuable in today’s fragmented media landscape. For example, a 30-second ad during the 2025 Super Bowl cost approximately US$7 million. A further indicator is the influx of capital into sports franchises. The recently developed Ross-Arctos Sports Franchise Index (RAFSI), which tracks returns from investments in the four major North American leagues (MLB, NFL, NBA, NHL), has outperformed all other asset classes.

As investment continues to pour into sport, the adoption of technology such as Catapult’s will likely accelerate.