HealthBeacon PLC HealthBeacon - HBCN - Trading and Management Update, Commercial Outlook

Healthbeacon

26/09/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230926:nRSZ6061Na&default-theme=true

RNS Number : 6061N  HealthBeacon PLC  26 September 2023

Trading Update, Commercial Outlook and Management Update

HealthBeacon plc ("HealthBeacon" or "the Company") today issues a trading
update and commercial outlook which sets out revised revenue guidance, an
update regarding the funding of the Company and a change to management.

HealthBeacon is making progress with the roll-out of its technology across key
channels. However, the scale and complexity of implementations, and the
contracting and planning phases of these new launches, are running up to 9
months longer than previously estimated.

HealthBeacon's exit Annual Recurring Revenue guidance for December of 2023 is
approximately €3.2m versus previous estimates of mid-teens by the end of
2023. The Company is therefore revising its ARR guidance to approximately
€17m by the end of Q4 2024.

To accelerate its path to profitability and improve cash management the
Company has initiated the activation of the Hamilton Beach supply chain
project; further reductions in operating expenses effective by year end; a
focus of resources on our key US Specialty Pharmacy and clinical launches; and
an improvement of commercial terms on new contracts.

The combination of these activities will reduce monthly cash burn to
approximately €0.7M per month by the end of 2023 and is currently expected
to result in cash breakeven being achieved by Q2 2025. However, to achieve
cash breakeven and scale at the pace now expected, the Company has a gross
funding requirement of approximately €11m over the next 18-24 months.
Therefore, the Company has initiated a review of funding options to provide
the required resources to deliver the forecasted growth into 2024.

 

Management Update

Today the Company is also announcing that CEO and Co-Founder Jim Joyce is to
step down from his role with immediate effect. Jim will remain as an adviser
to the board, and a non-executive director.

Rebecca Shanahan, an independent non-executive director of the Company, will
assume the role of CEO on an interim basis. Rebecca is an accomplished
Healthcare CEO, Board Chair & Board Member.  She has a track record of
starting, building and growing businesses to sustain stakeholder value across
publicly-traded, private-equity sponsored, founder-owned, and tax-exempt
healthcare services companies. Her firm, Shanahan Capital Ventures, LLC,
focuses on developing, scaling and re-structuring healthcare businesses and
supporting investors in the acquisition, growth and sale of healthcare assets.
She has previously served in leadership roles in companies including Avella
Specialty Pharmacy, Aetna Specialty Pharmacy, Oncology Therapeutic Network,
Shopper's Drug Mart, and Cardinal Health.

HealthBeacon chairman Robert Garber said: "We thank Jim for his efforts as the
co-founder and CEO, Jim invented the technology and launched it globally
taking the company public in 2021. We thank Jim for his efforts as CEO and
will continue to benefit from his expertise in his new role as a board
adviser. As we look to identify a permanent successor, the Board is pleased to
announce that Rebecca Shanahan will assume the role of interim CEO. Her
accomplishments, and the depth of experience she has as a senior executive in
a number of specialty pharmacy and healthcare companies, mean she will bring
valuable insights to the role."

 

Business update

HealthBeacon launched its Injection Care Management System (ICMS) with US
Specialty Pharmacy partner Accredo for a major global blockbuster injectable
medication in July 2023. The Company is now receiving over 1,700 patient
referrals each month and has shipped over 1,100 units to date.

The Company is in final launch planning with its next large Specialty Pharmacy
Organisation and in contracting and negotiations with three others.
HealthBeacon anticipates partnering and launching its ICMS with four of the
top five Specialty Pharmacy organisations by the end of 2024. These launches
will provide HealthBeacon access to over 60% of the US Specialty Injectable
Market.

Separately, HealthBeacon has successfully introduced its ICMS directly to US
clinicians through its Medico CX partner and individual clinicians. This
offering follows Medicare and Medicaid establishing Remote Therapeutic
Monitoring (RTM) insurance reimbursement for FDA cleared adherence devices in
certain therapeutic areas in 2022.  We have successfully onboarded the
initial group of clinicians and patients and worked with our partners to
initiate the first insurance claims.

 

The Patient Software Platform continues to grow profitably and will see new
medications, additional manufactures and geography launches (New Zealand and
Australia) throughout 2023 and into 2024.

HealthBeacon will announce Interim Results for 2023 on October 5(th), 2023.

-Ends-

 Enquiries:                                       Investor.Relations@HealthBeacon.com
                                                  (mailto:Investor.Relations@HealthBeacon.com)
 HealthBeacon:

 Rebecca Shanahan

 Lar Malone

 Goodbody (Euronext Listing Sponsor and Broker):  +353 (1) 667 0420

 David Kearney
 Stephen Kane

 Drury (Public Relations):
 Cathal Barry                                     +353 (0) 87 227 9281
 Gavin McLoughlin                                 +353 (0) 86 035 3749

 

About HealthBeacon

Headquartered in Dublin, HealthBeacon is an Irish digital therapeutics company
that develops smart tools for managing medications for patients in the home.
The HealthBeacon Injection Care Management System tracks adherence and
persistence with medication schedules through the provision of medication
management reminders, safe and sustainable sharps disposal devices,
educational tools, and artificial intelligence (AI) driven data analytics.
Peer reviewed evidence supports a 19% improvement in therapy persistence by
patients and up to 26% improvement in adherence to therapy, which improves
clinical outcomes and significantly improves efficiency in health systems. The
Company has expanded its offering to growth management with the launch of its
integrated Smart Scale and oral adherence with the launch of HB Wave which
integrates with its existing technology. The Company operates across Europe,
North America and the United Kingdom and employs more than 70 people and has
obtained more than 30 design and utility patents. The Company's mission is to
become the world's leading digital therapeutics platform for patients managing
medications in the home.

End

 

Disclaimer - This announcement contains inside information.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ISEXELLLXKLZBBF