REG - Trellus Health PLC - Trading Update & Related Party Transaction

Trellus HealthAnnouncement

20/12/2022 07:00

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RNS Number : 2343K  Trellus Health PLC  20 December 2022

 

Trellus Health plc

("Trellus Health" or the "Company")

 

Trading Update & Related Party Transaction

 

LONDON, U.K. AND NEW YORK, U.S. (20 December 2022).  Trellus Health plc (AIM:
TRLS), which is commercializing a scientifically validated, personalized
resilience-driven self-management solution for chronic health conditions at
their intersection with mental health, provides an update on trading
expectations for the current financial year and additional disclosures under
AIM Rule 13.

 

In respect of the financial year ending 31 December 2022, the Company expects
to report that it will have generated modest revenue and an EBITDA loss in
line with expectations. As at 31 December 2022 the Company's net cash position
is expected to total no less than $18 million, slightly better than expected
and reflecting the Company's close control of cash. As previously announced in
the Company's interim results announcement, and assuming only the level of
revenue at that time is maintained, the Company's cash runway is expected to
extend into 2025.

 

The Company expects to provide a more detailed trading update by early
February 2023.

 

As previously announced, the Company signed two contracts with the Mount Sinai
Health System ("Mount Sinai") to provide certain patients with access to the
Trellus Resilience Training and Self-Management Program for Inflammatory Bowel
Disease (the "Trellus IBD program") (the "Contracts").

 

The first contract will see Mount Sinai make the Trellus IBD program available
to, and paid for, as a wellness benefit, to all Mount Sinai Health System
employees, focusing initially on Inflammatory Bowel Disease ("IBD"), including
Crohn's Disease and ulcerative colitis.Mount Sinai has a robust employee
wellness program which is offered free of charge to all faculty and staff. The
second contract is to make the Trellus IBD program available, again as a
wellness benefit, to eligible patients who are members of a large NY state
labor union, which provides health services and benefits to its members
through Mount Sinai.

 

Whilst there is no minimum revenue guarantee under the Contracts, the Trellus
IBD program is being made available from 1 January 2023 as a wellness benefit
to eligible participants who have been made aware of the offering. These
Contracts support the Company's strategy of rolling out its solution to a
wider patient audience.

 

The Company expects to provide further commentary on its business development
opportunities when it issues its further update in early 2023.

 

Related Party Transaction

Mount Sinai is a substantial shareholder in the Company and is represented on
the Trellus Health Board by Dr. Erik Lium. Dr. Marla Dubinsky, CEO of Trellus
Health, is also a professor of pediatrics and medicine at the Icahn School of
Medicine at Mount Sinai. As the Contracts have the potential to generate
revenue which could exceed the relevant threshold for classification as a
related party transaction under the AIM Rules, the Contracts are classified as
related party transactions pursuant to the AIM Rules for Companies.

 

The independent directors of the Company (being Julian Baines, Mike Salter,
Christopher Mills, Dr. Daniel Mahony and Traci Entel), having consulted with
Singer Capital Markets as the Company's Nominated Adviser, consider that the
terms of the Contracts are fair and reasonable insofar as the Company's
shareholders are concerned.

 

 

 

 

For further information please contact:

 

 Trellus Health plc                                                         https://trellushealth.com/ (https://trellushealth.com/)
 Julian Baines, Non-executive Chairman                                      Via Walbrook PR
 Dr. Marla Dubinsky, Chief Executive Officer
 Steve Young, Chief Financial Officer

 Singer Capital Markets (Nominated Adviser and Broker)                      Tel: +44 (0)20 7496 3000
 Aubrey Powell / Jen Boorer

 Walbrook PR                                  Tel: +44 (0)20 7933 8780 or trellus@walbrookpr.com
                                              (mailto:trellus@walbrookpr.com)
 Paul McManus / Sam Allen / Phillip Marriage  Mob: +44 (0)7980 541 893 / 7748 651 727 / 7867 984 082

 

 

About Trellus Health plc (www.trellushealth.com (http://www.trellushealth.com)
)

Trellus Health (LSE: TRLS) is the first resilience based digital health
company focused on the intersection of chronic illness and mental health.
Trellus Health integrates its proprietary resilience-based methodology with
the technology, tools and team to deliver a whole-person technology-enhanced
experience that results in relieving disease burden, building self-management
skills and promoting individual health behaviors that enable thriving in the
face of a chronic condition. Through its TrellusElevate™ connected health
platform and companion App, the company addresses both physical and behavioral
health together, in context, to improve outcomes and reduce healthcare costs
across the healthcare ecosystem.

 

The Company is initially focused on Inflammatory bowel disease ("IBD"), which
includes the chronic incurable conditions of Crohn's Disease and ulcerative
colitis, and shortly Irritable Bowel Syndrome ("IBS"), but, given the common
struggles of self-management, considers its approach to have potential utility
and demand across many chronic conditions.

 

The TrellusElevate™ platform is the Company's proprietary connected health
platform that incorporates the GRITT™ methodology and learnings on
resilience from clinical research and practice conducted at the Mount Sinai
IBD Center for more than five years. This proprietary, resilience-driven
methodology has been scientifically validated to demonstrate meaningful
improvements in patient outcomes, 71% reduction in Emergency Department
(A&E) visits, and 94% reduction in unplanned hospitalisations, which the
directors of the Company believe indicates the potential for significant cost
savings for healthcare payers. Patients with IBD treated using the methodology
also experienced a 49% reduction in required opioid use and a 73% reduction in
corticosteroid use 12 months following starting the program(2).

 

The Company was founded by Mount Sinai faculty members Marla C. Dubinsky, MD
and Laurie Keefer, PhD, both with decades of combined experience in IBD and
psychogastroenterology, respectively. Trellus Health's patent-pending GRITT™
resilience assessment and personalized resilience training methodology was
developed and validated at the Mount Sinai Health System to build resilience
and wellness for improved outcomes at lower cost.

 

Shares in Trellus Health were admitted to trading on AIM in May 2021, under
the ticker TRLS. For more information on Trellus Health, visit:
www.trellushealth.com (http://www.trellushealth.com)

 

1) Source: https://www.cdc.gov/chronicdisease/about/costs/index.htm
(https://urldefense.proofpoint.com/v2/url?u=https-3A__www.cdc.gov_chronicdisease_about_costs_index.htm&d=DwMFaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=fSst1AtlXyuqcs3cHJXcCRilbI1Qm1WfjNYkVgQfiLE&m=IjQVBqsF0mJCc4cCch3kNewShI3X349VlYSUrh3C5-c&s=lilxcTv-hIGGEbeSix8wsDKl8TOyuP3Vw__GebvZFro&e=)
)

2) Source: https://www.sciencedirect.com/science/article/pii/S1542356521012258
(https://www.sciencedirect.com/science/article/pii/S1542356521012258) ).

 

 

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