HEALWELL AI Inc. (“
HEALWELL” or the
“
Company”) (TSX: AIDX, OTCQX: HWAIF), a healthcare
technology company focused on AI and data science for preventative
care, is pleased to provide a corporate update highlighting updates
on the Company’s recent commercial successes and acquisition
strategy.
Dr. Alexander Dobranowski, CEO of HEALWELL
commented, “We live in a world where we know that healthcare costs
are on the rise and burdening the economies of most industrialized
and modern medical systems globally in an unsustainable manner.
This has ushered in a new era of focus on Value Based Care related
trends that are designed to drive down costs, improve efficiency,
alleviate provider burnout, and improve patient outcomes. One of
the most powerful tools being enlisted by health systems globally
is to add data driven clinical decision support systems to EHR
platforms to better support providers. The prevalence of AI in
healthcare is now poised to firmly disrupt clinical decision
support systems.”
Dr. Dobranowski adds, “At HEALWELL, we’ve
acquired a competitive suite of AI technology not only in Canada
but globally, and we are poised to not only drive the proliferation
of this technology to clinical decision support systems, but we
also intend on vertically integrating our AI technologies to create
far superior clinical decision support capabilities that will
support Value Based Care trends.”
Active Capital Allocation Program
Supported by a Strong Balance Sheet
In a short time since the Company’s
recapitalization event on October 1, 2023, that was led by
strategic partner WELL Health Technologies Corp. (“WELL”), HEALWELL
has raised approximately $29.5 million, completed the majority
stake acquisition of Pentavere Research Group (“Pentavere”), which
to our knowledge and research is one of the foremost healthcare AI
data science companies in Canada, and completed a minority
investment and strategic alliance in a rapidly growing German based
EMR company, doctorly.
HEALWELL’s acquisition pipeline is robust and
expanding daily. The Company has looked at over 100 potential
acquisition opportunities. Heading further into 2024, HEALWELL is
in conversations with multiple parties and is working to identify
additional investments and acquisition opportunities in the near
future. Part of our M&A philosophy is to target companies that
have mature revenue, strong positive EBITDA and a compelling growth
opportunity going forward.
An important part of HEALWELL’s forward growth
and value creation strategy involves acquiring, investing in and/or
partnering with data focused companies such as EMR, EHR, patient
flow and/or other similar businesses and integrating our
best-in-class AI capabilities that will provide next-generation
AI-powered clinical decision support capabilities that will provide
patients and providers with powerful tools to drive better health
outcomes at lower costs in a manner aligned with global Value Based
Care (“VBC”) trends.
Digital software offerings combined with AI
technologies are expected to drive transformational change in
healthcare. In other words, software (such as EMRs) combined with
AI are the future of healthcare. HEALWELL plans to add its
disruptive AI capabilities in order to drive next generation
benefits for physicians, clinics, hospitals and the pharmaceutical
industry. This will further ease burdens on healthcare providers
and systems, while dramatically improving the time to intervention
as a result of using HEALWELL’s tools and technology.
Accelerating Commercial
Success
Another key growth strategy for HEALWELL is to
grow its operating businesses that work closely with the life
sciences and pharmaceutical industries. Companies that advance
scientific research initiatives with and on behalf of
pharmaceutical companies benefit from the integration and
leveraging of HEAWELL’s AI systems.
Including both the KHURE HEALTH (“KHURE”) and
Pentavere divisions, as of December 31, 2023, HEALWELL had 17
services agreements in our development pipeline with pharma
companies. In addition, the Company has services agreements with 7
hospitals and provincial health authorities in Canada, and 3
service agreements with US based healthcare systems. The
combination of KHURE and PENTAVERE has expanded the Company’s
pipeline of existing pharma relationships. Moreover, in 2024, the
Company expects to launch new AI commercial initiatives in a number
of additional specializations including dermatology, ophthalmology,
migraine, diabetes, oncology (Breast, Lung, Prostate) heart failure
and vascular disease.
KHURE has made progress reaccelerating its
Clinical Decision Support (CDS) commercial roadmap with life
sciences and pharmaceutical companies. This has resulted in new
commercial activity, repeat/extended projects, and the addition of
new pharmaceutical customers amongst the largest global
pharmaceutical and life science companies. Part of this success has
been attributed to the adoption of the KHURE technology within the
WELL ecosystem as WELL AI DECISION SUPPORT. This has now provided
KHURE with access to thousands of WELL providers as per the
strategic alliance agreement executed on October 1, 2023. KHURE has
also expanded its core capability by developing and validating
additional algorithms in a wider disease purview that now also
includes chronic conditions in addition to rare and ultra-rare
diseases. Previous pharmaceutical and life sciences customers are
repeating or extending business with KHURE; a positive indicator
that re-enforces our confidence in the outlook for 2024.
Pentavere is also excited to announce it
has launched an innovative and first-of-its-kind; Real-World
Evidence (RWE) insight and quality improvement product for
Dermatologists and life sciences companies to better support unmet
patient needs in the community. This product is called DERMAID, and
it harnesses PENTAVERE’s DARWEN™ artificial intelligence
platform to extract valuable and actionable clinical insights that
support dermatology patient care pathway decisions. DERMAID has
already established its market presence with relevant commercial
activity with a top 5 pharmaceutical company.
The global market for clinical decision support
systems was estimated to be worth USD $4.9 billion in 2022 and is
expected to expand at a compound annual growth rate (CAGR) of 10.6%
from 2023 to 2030(1). The growing demand for quality care and
alignment with Value Based Care trends coupled with advancements in
data science and artificial intelligence will drive significant
growth in the market for viable clinical decision support
systems.
Footnote: (1)
Source:
https://www.grandviewresearch.com/industry-analysis/clinical-decision-support-system-market
Dr. Alexander DobranowskiChief Executive
OfficerHEALWELL AI Inc.
About HEALWELL AI
HEALWELL AI is a healthcare technology company
focused on AI and data science for preventative care. Its mission
is to improve health care and save lives through early
identification and detection of disease. As a physician-led
organization with a proven management team of experienced
executives, HEALWELL AI is executing a strategy centered around
developing and acquiring technology and clinical sciences
capabilities that complement the Company's road map. HEALWELL is
publicly traded on the Toronto Stock Exchange under the symbol
“AIDX” and on the OTC Exchange under the symbol “HWAIF”. To learn
more about HEALWELL AI, please
visit: https://healwell.ai/.
Forward Looking
StatementsCertain statements in this press release,
constitute "forward-looking information" and "forward looking
statements" (collectively, "forward looking statements") within the
meaning of applicable Canadian securities laws and are based on
assumptions, expectations, estimates and projections as of the date
of this press release. Forward-looking statements in this press
release include statements with respect to, among other things:
HEALWELL’s future plans including it’s ability to execute on its
strategic goals, including HEALWELL’s ability to identify and close
acquisition targets and to launch new AI commercial initiatives,
the achievement of profitability and revenue targets; HEALWELL’s
future growth prospects and business outlook including without
limitation the expected demand for its products, the allocation of
resources and funds, the planned growth of HEALWELL’s customer base
and the expected growth of operations, and the future conditions of
the health care and health care AI market. Forward-looking
statements are often, but not always, identified by words or
phrases such as "to become", "improve", "growth", "ensuring",
"continue", "anticipated", "expects", "proceed", "potential",
"future", "consider", "result in", "increase", "deliver",
"emerging", “is poised”, "plan", "position", "opportunities",
"expansion", "exercise", "ensure", "achieve", "acquire",
"complete", "satisfy", "entitle", "subject to" or variations of
such words and phrases or statements that certain future
conditions, actions, events or results "will", "may", "could",
"would", "should", "might" or "can" be taken, occur or be achieved,
or the negative of any of these terms . Forward-looking statements
are necessarily based upon management’s perceptions of historical
trends, current conditions and expected future developments, as
well as a number of specific factors and assumptions that, while
considered reasonable by HEALWELL as of the date of such
statements, are outside of HEALWELL's control and are inherently
subject to significant business, economic and competitive
uncertainties and contingencies which could result in the
forward-looking statements ultimately being entirely or partially
incorrect or untrue. Forward looking statements contained in this
press release are based on various assumptions, including, but not
limited to, the following: favorable global AI regulations going
forward, the continued adoptions of the software, tools and
solutions created by HEALWELL, the impact of increasing competition
and the ability to market HEALWELL’s products and services
successfully, that HEALWELL will be successful in identifying,
executing and integrating new acquisitions, investments and/or
partnerships, the stability of general economic and market
conditions; HEALWELL's ability to comply with applicable laws and
regulations; HEALWELL's continued compliance with third party
intellectual property rights; and that the risk factors noted
below, collectively, do not have a material impact on HEALWELL's
business, operations, revenues and/or results. By their nature,
forward-looking statements are subject to inherent risks and
uncertainties that may be general or specific and which give rise
to the possibility that expectations, forecasts, predictions,
projections, or conclusions will not prove to be accurate, that
assumptions may not be correct, and that objectives, strategic
goals and priorities will not be achieved.
Known and unknown risk factors, many of which
are beyond the control of HEALWELL, could cause the actual results
of HEALWELL to differ materially from the results, performance,
achievements, or developments expressed or implied by such
forward-looking statements. Such risk factors include but are not
limited to those factors which are discussed under the section
entitled "Risk Factors" in HEALWELL's most recent annual
information form dated March 31, 2023, and in the preliminary short
form base shelf prospectus dated January 19, 2024, both of which
are available under HEALWELL's SEDAR+ profile
at www.sedarplus.com. The risk factors are not intended to
represent a complete list of the factors that could affect HEALWELL
and the reader is cautioned to consider these and other factors,
uncertainties and potential events carefully and not to put undue
reliance on forward-looking statements. There can be no assurance
that forward looking statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Forward-looking statements are
provided for the purpose of providing information about
management’s expectations and plans relating to the future.
Further, these forward-looking statements are made as of the date
of this news release and, except as expressly required by
applicable law, HEALWELL disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise, or to explain any
material difference between subsequent actual events and such
forward-looking statements, except to the extent required by
applicable law. All of the forward-looking statements contained in
this press release are qualified by these cautionary
statements.
For more information:
Pardeep S. SanghaInvestor Relations, HEALWELL AI
Inc.Phone: 604-572-6392ir@healwell.ai
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