TALi Digital Ltd (ASX:TD1) has entered into a strategic licensing agreement with Akili Interactive Labs Inc to become the exclusive commercialisation partner for all of Akili’s paediatric cognition products in the US.
The agreement is transformational and highly strategic for TALi and is estimated at A$51 million in total future contingent milestone payments plus royalties on potential revenues.
Promisingly, this deal validates the first-to-market TALi technology platform and opens the potential for long-term sustainable revenues from the US, and other key global markets where strategic discussions are also progressing.
“Digital-first support to millions of children”
TALi managing director Glenn Smith said: “Akili is leading the digital therapeutics industry with its ability to dramatically scale into mainstream medicine while maximizing value to patients and to the business, making it an ideal partner for expanding the reach and impact of our technology.
“We’re looking forward to working with the Akili team to provide solutions that deliver digital-first support to the millions of children living with attention issues.”
Rise in digital health adoption in developing economies
Akili has commercialised the first FDA-cleared and CE-marked video game treatment, EndeavorRx as a prescription digital therapeutic (PDT) to improve attention function in children aged 8-12 with Attention Deficit Hyperactivity Disorder (ADHD).
The ADHD therapeutics market in the US is estimated at US$10 billion, with over 6 million children aged 8-18 in the US diagnosed with ADHD.
It is estimated that around 50% of ADHD paediatric patients are willing to try non-pharmacological treatments.
TALi to lead clinical and regulatory clearance
Akili recently completed a US$160 million funding round led by the top-tier global investment management group, Neuberger Berman Funds.
TALi will lead the clinical and regulatory clearance, while Akili will lead the commercialisation of paediatric cognition digital solutions in the US with an initial milestone payment to TALi of US$2 million upon FDA clearance estimated in FY2023.
Akili co-founder and CEO Eddie Martucci said: “Focused on early childhood intervention targeting attention, TALi’s impressive technology is an ideal addition to Akili’s portfolio.
“We are committed to changing the way people think about medicine, and strategic agreements like this will allow us to expand our vision to treat cognitive impairments in entirely new ways and usher in the next generation of digital therapeutics.”
Forward Plan
With a scalable technology platform and validation from global leaders, TALi now have access to the world’s largest market in the US through Akili to establish recurring revenues through royalties.
In addition, the company is in the process of being listed on the Medicare Benefits Scheme in Australia as a reimbursable therapeutic.
Furthermore, TALi is also currently engaged in evaluating a research program exploring the potential for its technology platform to be expanded to other cognitive decline indications, more common in populations with Mild Cognitive Impairment (MCI).
- Ephrems Joseph