Sensyne Health PLC (LON: SENS) has paved the way to enter the US as the medical data specialist as it closes its first year as a publicly listed company.
The Oxford-based firm, which uses artificial intelligence (AI) to develop medicines analysing real-world evidence of anonymised data provided by NHS Trusts, has struck deals with “a Fortune 200 company and a data infrastructure specialist” to launch and scale its existing licenced products in the US.
As part of these agreements, Sensyne will develop AI solutions to try and prevent and manage a range of chronic health conditions.
“We understand that these very significant deals will likely yield double-digit million revenues by FY22, rising to high tens of millions within five years. This also includes a revenue share on licences (low single-digit millions from FY21 with a pro-rata contribution in FY20),” said broker Peel Hunt, adding an update is expected in the coming weeks.
Sensyne also signed a research agreement with the UK healthcare products regulator, the Medicines and Healthcare products Regulatory Agency, to develop verification methods for algorithms used in digital health.
Results for the 12 months ended 20 April 2019 showed revenue growth of 40.4% year-on-year to £136,000, with adjusted operating loss swelling 45% to £11.5mln.
The numbers reflected initial revenue recognisable under contracts from the release of two products launched towards the end of the year, but not the first major contract, which was signed with Bayer in July, providing a £5mln income until 2022.
The AIM-listed firm said that the initial strategy of building a portfolio of small contracts with multiple clients negatively impacted revenues in FY 2019 and in the first half of FY 2020 ending 31 October.
The new plan is to focus on building strategic relationships with a small number of larger clients, such as Bayer, boosting the expected revenue for the upcoming financial years.
Exceptional items included £2.6mln related to IPO fees, after floating on the London Stock Exchange in August 2018.
Net cash at year-end was £49.2mln, which with the existing agreements is enough for continuing operations for another two years, the company said.
Shares were up 2.83% to 105.4p on Monday afternoon.