HealthBeacon PLC (EURONEXT:HBCN, OTCQX:HBCNF) today announced that Rebecca Shanahan is taking up the position of interim chief executive as Jim Joyce steps down from his role with immediate effect.
Rebecca Shanahan, via her investment firm Shanahan Capital Ventures, focuses on developing, scaling and re-structuring healthcare businesses and supporting investors in the acquisition, growth and sale of healthcare assets, HealthBeacon noted in a statement.
Prior to today’s change, she was the company’s independent non-executive director of the company.
She has a track record of leadership roles, the company noted, included companies such as Avella Specialty Pharmacy, Aetna Specialty Pharmacy, Oncology Therapeutic Network, Shopper's Drug Mart, and Cardinal Health.
"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,” chair Robert Garber said.
“We thank Jim for his efforts as chief executive and will continue to benefit from his expertise in his new role as a board adviser.”
Garber added: “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.”
Updated guidance
Also today, HealthBeacon told investors that it is making progress with the roll-out of its technology across key channels.
However, it noted that the scale and complexity of implementations, and the contracting and planning phases of these new launches, are running up to nine months longer than previously estimated.
Current forecasts now see the company generating €3.2 million of annual recurring revenue for 2023, versus prior expectations of ‘mid-teens’, it added.
Consequently, it is now moving its 2024 guidance to €17 million.
At the same time, the company has initiated a new project which aims to “accelerate the path to profitability and improve cash management”. It also seeks to cut operating expenses by the year end and focus its resources on key US specialty pharmacy and clinical launches.
Commercially, the company will seek improved terms for new contracts.
HealthBeacon expects these actions will reduce monthly cash burn to €700,000 per month by the end of 2023 and it anticipates reaching cash breakeven by the second quarter of 2025.
The company also anticipates that in order to "achieve cash breakeven and scale at the pace now expected" it will require around €11 million of additional funds over the next 18-24 months.
It has, therefore, initiated a review of funding options to provide the required resources to deliver the forecasted growth into 2024.
US specialty pharmacy
HealthBeacon said its Injection Care Management System (ICMS), launched in July with partner Accredo for "a major global blockbuster injectable medication", is now receiving over 1,700 patient referrals each month and has shipped over 1,100 units to date.
It added that the company is now in final launch planning with its next large Specialty Pharmacy Organisation, and in contracting and negotiations with three others.
The company expects to partner and launch with four of the top five Specialty Pharmacy organisations by the end of 2024.
If this succeeds, the company expects to have access to over 60% of the US Specialty Injectable Market.
Separately, it has introduced its ICMS directly to US clinicians through its Medico CX partner and individual clinicians.
The company highlighted that it has successfully onboarded the initial group of clinicians and patients and worked with its partners to initiate the first insurance claims.
This progress follows Medicare and Medicaid establishing Remote Therapeutic Monitoring (RTM) insurance reimbursement for FDA-cleared adherence devices in certain therapeutic areas in 2022.
Meanwhile, HealthBeacon also said its 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.
The company’s interim results are due on 5 October.