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 5th, 2023.
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| Enquiries: |
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| HealthBeacon: Rebecca Shanahan Lar Malone
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| Goodbody (Euronext Listing Sponsor and Broker): David Kearney |
+353 (1) 667 0420 |
| Stephen Kane |
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Drury (Public Relations): |
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| 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.
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