REG - Trellus Health PLC - Trading update

Trellus HealthAnnouncement

14/12/2021 07:00

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RNS Number : 5136V  Trellus Health PLC  14 December 2021

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE UK
VERSION OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014, AS IT FORMS PART OF
UK LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018 AND CERTAIN OTHER
ENACTING MEASURES ("UK MAR").

 

Trellus Health plc

("Trellus Health" or the "Company")

 

Trading update

 

LONDON, UK. AND NEW YORK, U.S. (14 December 2021). Trellus Health plc (AIM:
TRLS), which is commercialising a scientifically validated, resilience-based,
connected health solution for chronic condition management, provides an update
on trading expectations for the current financial year, on operational and
strategic progress during the year and on the Company's outlook for 2022.

 

Shares in Trellus Health were admitted to trading on AIM in May 2021, with the
Company successfully raising £28.5m (gross) in a significantly oversubscribed
fundraising allowing it to further develop and enhance the TrellusElevate(TM)
platform and, amongst other things, fund its clinical operations,
commercialisation, and business development strategy.

 

The Company is able to report good progress during 2021 and has seen strong
operational performance with the TrellusElevate(TM) technology platform V1.0
launched in July and, as announced in September
(https://www.londonstockexchange.com/news-article/TRLS/new-partnership-agreement-licensed-clinical-team/15136921)
, a licensed clinical team established, comprising an IBD Nurse, a Licensed
Behavioral Specialist and a Registered Dietician Nutritionist.

 

Trellus also announced its first Demonstration contract with the Mount Sinai
Health System employee health plan in August 2021 and the following month
confirmed that a Managed Services Organization Agreement was executed with
Connected Health Medicine PC to deliver resilience-based multidisciplinary
care using licensed clinical professionals trained on applying the
GRITT(TM) methodology for assessment and treatment via the
TrellusElevate(TM) platform.

 

The Company's focus has been on ensuring operational and user experience
excellence with the platform, and live testing with IBD patients, currently
being conducted, is very encouraging. The Company now plans to deliver the
clinical operational launch of the TrellusElevate(TM) technology platform from
January 2022 in New York, New Jersey and Connecticut.

 

The Company has a robust pipeline of potential payers (i.e. regional and
national health plans, employers, health systems, GI provider networks, and
pharmaceutical companies) engaged in ongoing discussions. Several B2B payer
contracts are in late-stage negotiations with expected completion in Q1 2022,
reflecting longer lead times and processes to negotiate and conclude than
originally anticipated. Accordingly, the Company has expedited plans to launch
a direct-to-consumer (DTC) offering to support the more widespread expansion
of its services to IBD patients in the US. Trellus therefore expects to see a
move towards greater revenue generation through DTC over payer channels in
2022. The DTC offering will also be launched in early 2022 in the same states
as the first clinical launch of the platform.

 

The Company continues to keep a very tight control of costs and to manage
investment in the business closely, as it begins to transition from
development phase into early revenue generation. In respect of the financial
year ending 31 December 2021, the Company expects to generate revenue of $25K
and incur an EBITDA loss of $5.9m. As a result year-end cash is expected to be
not less than $30m as at 31 December 2021, higher than market expectations and
reflecting the realignment of expenditure with the pace of development of the
business.

 

The focus for 2022 will be on the establishment of additional demonstration
programmes, B2B contracts and recruitment of DTC patients to gather real world
evidence to validate and reinforce outcomes shown in the co-founders'
published research.  This demonstrated that IBD patients show significant
improvements in resilience and reductions in expensive unplanned healthcare by
using the Company's proprietary GRITT(TM) methodology and resilience-building
multidisciplinary care model.  As greater evidence is amassed during 2022,
the Company expects to enter into regional and national multi-year contracts
with payers from 2023 onwards.

 

Under the emerging DTC model, the fees payable by the consumer to access and
engage with the Company's platform will be paid directly by patients or
reimbursed through billing to insurance claims using pre-existing procedural
codes. These DTC fees are lower on average than those planned for B2B
customers. Trellus Health's investment plans for 2022 are being phased such
that the Company anticipates having funding sufficiency to sustain business
growth and expansion through H1-2023.

 

Monique Fayad, CEO of Trellus Health commented: "We are extremely pleased with
the progress made this year against our technical, operational and
commercialization plans. Initial feedback from IBD patients using the
TrellusElevate(TM) platform has been consistently positive, as they are
delighted by its ease of use and the level of support and interaction received
from their licensed multidisciplinary care team.

 

"Our robust pipeline of discussions and late-stage contract negotiations
across a range of B2B payers and business development partners demonstrates
the market's interest in and need for validated digital health solutions that
improve outcomes while significantly reducing health care costs. While the
sales cycle has proven lengthier than expected, we remain excited by the
medium-term prospects for the business on B2B growth and are pleased to be
able to offer a DTC service much sooner than we first anticipated. With
clinical operations commencing in January through our partnership with
Connected Health Medicine, we look forward to gathering and reporting real
world evidence and user feedback regarding the positive health and economic
outcomes of utilizing the proprietary GRITT(TM) methodology and whole-person
care management approach for complex chronic conditions."

 

For further information please contact:

 

 Trellus Health plc                                       www.trellushealth.com (http://www.trellushealth.com)
 Monique Fayad, CEO                                       Via Walbrook PR
 Julian Baines, Chairman

 Singer Capital Markets (Nominated Adviser & Broker)      Tel: 020 7496 3000
 Aubrey Powell / Jen Boorer

 Walbrook PR Limited                                      Tel: 020 7933 8780 or trellus@walbrookpr.com (mailto:trellus@walbrookpr.com)
 Paul McManus / Sam Allen                                 Mob: 07980 541 893 / 07502 558 258

 

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

Trellus Health (LSE: TRLS) is a leading pioneer in resilience-driven care and
the first digital health company focused on the intersection of chronic
physical conditions and mental health. Trellus Health's digital-first chronic
care management solution integrates convenient access to a licensed
multidisciplinary care team with a suite of tools for resilience assessment,
education and behavior modification, remote monitoring, health maintenance and
prevention. Through its TrellusElevate™ connected care platform and
companion App, the company enables coordination and delivery of expert
whole-person care, addressing both clinical and behavioral health together, in
context, to improve outcomes and reduce healthcare costs for patients,
employers, and the healthcare system.

 

Trellus Health is commercialising the provision of digital chronic condition
management solutions for employers and health plans that utilise the
scientifically validated resilience-based methodology and a proprietary
HIPAA-compliant technology platform called TrellusElevate™ to coordinate and
deliver personalised care remotely via telehealth. The Company is initially
focused on Inflammatory bowel disease ("IBD"), which includes the chronic
incurable conditions of Crohn's Disease and ulcerative colitis, but considers
its approach to have potential utility and demand across many chronic
conditions.  A direct-to-consumer (DTC) offering is also being devised for
IBD, allowing patients to pay directly or submit claims for insurance
reimbursement utilising existing procedural codes.

 

The TrellusElevate™ platform is the Company's proprietary connected health
platform that incorporates the proprietary methodology and learnings on
resilience from clinical research and practice conducted at the Mount Sinai
IBD Center for more than five years. The proprietary methodology and
resilience-driven multidisciplinary care model have been scientifically
validated to demonstrate meaningful improvements in patient outcomes and over
85 per cent. reduction in unplanned healthcare utilisation (emergency
department visits and hospitalisations) which the directors of the Company
believe indicates the potential for significant cost savings for healthcare
payers.

 

The Company was founded by Dr. Marla C. Dubinsky, MD and Dr. Laurie Keefer,
PhD, both with decades of combined experience in IBD and
psychogastroenterology, respectively. Trellus Health's patent-pending
GRITT(TM )resilience assessment and personalized treatment 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 (https://trellushealth.com/)

 

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