Nightingale Health Plc

Company release

20 September 2024 at 9:00 a.m. (EEST)

Nightingale Health Group's Financial Statements Release 1 July 2023 - 30 June 2024 (unaudited)

Nightingale's Financial Statements Release: Implementation of Nightingale Health's technology in healthcare is progressing

Nightingale Health maintained strong financial position and reached significant milestones in its core markets Finland, Japan, Singapore, the United Kingdom, and the United States

This release is a summary of Nightingale Health Group's Financial Statements Release from financial year 1 July 2023 - 30 June 2024. The full Financial Statements Release is attached to this release.
 

Numbers presented in brackets refer to corresponding year-on-year period unless otherwise stated.

January-June 2024 (H2) key financials (IFRS)

• Revenue was EUR 2.64 (1.94) million
• EBITDA was EUR -5.10 (-6.37) million
• Operating loss was EUR -9.29 (-9.85) million
• Net loss for the period was EUR -8.93 (-9.53) million
• Unadjusted earnings per share (EPS) was EUR -0.15 (-0.16) (Series A and EMP) and EUR -0.15 (-0.16) (Series B)
• Net cash on 30 Jun 2024 was EUR 63.40 (31 Dec 2023: EUR 69.05) million

July 2023-June 2024 key financials (IFRS)

• Revenue was EUR 4.36 (4.18) million
• EBITDA was EUR -10.43 (-11.83) million
• Operating loss was EUR -18.59 (-18.52) million
• Net loss for the period was EUR -17.46 (-18.08) million
• Unadjusted earnings per share (EPS) was EUR -0.29 (-0.30) (Series A and EMP) and EUR -0.29 (-0.30) (Series B)
• Net cash on 30 Jun 2024 was EUR 63.40 (30 Jun 2023: 75.62) million

Significant events during the financial period 1 July 2023 - 30 June 2024

• Nightingale Health updated its strategy and will focus on B2B and B2G markets. The company sees these areas as the best opportunities to leverage its competitive advantages and create value for customers. As part of the updated strategy, Nightingale Health discontinued businesses where it had a direct relationship with consumers.
• Nightingale Health expanded its partnership with Finland's largest health service company, Terveystalo, to cover Terveystalo's occupational health services. The agreement signed in August 2023 incorporates Nightingale Health's blood analysis technology into regular health checks performed as part of Terveystalo's occupational health services. Terveystalo begun using Nightingale Health's blood analysis technology as part of its occupational health services throughout Finland on 2 January 2024. By the end of the financial year, Nightingale Health had provided hundreds of healthcare professionals with better tools for preventive healthcare, and over 50,000 individuals had had their chronic disease risks assessed. The first aggregated risk statistics were published during the last quarter of the financial year. They prove the applicability of Nightingale Health's technology for enabling nation-wide preventive healthcare systems to replace the current reactive systems.
• Nightingale Health entered into a collaboration agreement with Innoquest Diagnostics, a leading clinical diagnostics service provider in Singapore. Innoquest Diagnostics is a subsidiary of Pathology Asia, and it will offer Nightingale Health's blood analysis service to healthcare providers in Singapore. In addition, the blood analysis service can be offered in the Southeast Asia region by other companies within the Pathology Asia group. Furthermore, Nightingale Health received the first regulatory approval from Singapore's Health Sciences Authority (HSA), which covers eight common clinically used biomarkers.
• Nightingale Health announced two strategic partnership deals in the United States at the end of the financial year. One of the deals was made with Boston Heart Diagnostics and the other with 23andMe. These partnerships together with the company's earlier announcements with Kaiser Permanente, Weill Cornell Medicine and Mass General Brigham are key initiatives driving the adoption of Nightingale Health's technology in the United States. By working with some of the strongest healthcare organizations in the US, Nightingale Health is well positioned to seek further growth in the world's largest healthcare market.
• Nightingale Health announced that it acquired all intellectual property assets of the VelvetTM blood collection device. With the acquisition, Nightingale Health secures its position as the sole provider of a fully integrated remote blood test and health check solution. Nightingale Health uses the Velvet™ blood collection device in its Remote Health Check, providing an industry-leading panel of blood biomarkers and disease risk detection for the most common chronic diseases from a blood sample collected anywhere, for example at home, without the need to visit a laboratory. The Velvet™ device is used, for instance, in the collaboration with 23andMe and in the collaboration with the UK-based health company ZOE announced in June 2024.
• Nightingale Health completed the analysis of blood samples from all 500,000 UK Biobank participants, creating the world's largest blood biomarker database for chronic disease research and prevention. The data is globally accessible to approved researchers undertaking health-related research that is in the public interest. The wide scientific use of Nightingale Health's biomarkers has already enabled the company's technology to be routinely adopted in clinical settings (Terveystalo in Finland), marking a leap forward in chronic disease treatment and prevention.
• Nightingale Health strengthened its position in Japan by acquiring Welltus Inc. from Mitsui & Co. and Kirin Holdings Company, Limited. The acquisition provides an excellent position to capitalize the established network of more than 200 hospitals in Japan and enables Nightingale Health to seek for new partnerships to expand the use of the company's technology in a major healthcare market in Asia.
• Nightingale Health received eight new patents during the financial year. The new patents expand the company's patent portfolio to cover dry blood spot analysis and additional health areas.

Key figures

EUR thousand Group Group Group Group

1-6/24 1-6/23 7/23-6/24 7/22-6/23
Revenue 2,643 1,939 4,358 4,182
EBITDA -5,098 -6,372 -10,434 -11,835
Operating loss -9,285 -9,852 -18,592 -18,524
Net loss for the financial -8,934 -9,530 -17,463 -18,083
period
Equity ratio 92% 92% 92% 92%
Net debt to equity ratio -76% -78% -76% -78%
Balance sheet total 90,840 106,793 90,840 106,793
Number of employees on 83 87 84 82
average
Employee benefits* -4,545 -5,273 -8,783 -9,381
Net cash at the end of the 63,401 75,615 63,401 75,615
period
Earnings per share (EPS), -0.15 -0.16 -0,29 -0.30
undiluted and diluted**,
EUR

* Employee benefits include expenses in accordance with the IFRS 2 Share based payments standard, which totaled EUR 2.93 (3.95) million in the financial year.

** The company's potential dilutive instruments consist of stock options. As the company's business has been unprofitable, stock options would have an anti-dilutive effect and therefore they are not taken into account in calculating the dilutive loss per share. Thus, there is no difference between the undiluted and diluted earnings per share.

From the CEO
 

The core problem in healthcare is simple: there are too many sick people.

This is why our current healthcare system is not a health care system, but a sick care system. If we don't start investing in keeping people healthy and preventing diseases, the amount of people with chronic diseases will become unsustainable and the whole healthcare system will face the risk of collapsing. When we reach a point where everyone can't be treated and inequality in healthcare increases to unprecedented levels, the consequences will have massive impact on society.

For the past decade, we at Nightingale Health have been working hard to enable a better healthcare system.

The solution to the current crisis in healthcare is to widely implement a preventative healthcare system. At the core of a preventative healthcare system is the ability to detect disease risks. When people at highest risk of disease can be identified in time, healthcare services and interventions can be targeted to those who benefit the most from them, and the onset of chronic diseases can be prevented.

The health check developed by Nightingale Health is by far the most efficient and effective solution for large-scale risk detection. The health check detects the risks associated with various common chronic diseases from a single blood sample. Because the health check requires only a single blood sample, it can be used to broadly assess disease risks at the population level without using already scarce healthcare resources.

During the financial year that ended in June 2024, we reached multiple milestones in enabling a preventive healthcare system and adopting our technology in healthcare settings in our key markets: Finland, Japan, Singapore, the United Kingdom, and the United States.

In Finland, through the collaboration with Terveystalo, the largest private healthcare organization in Finland, the risk assessments provided by our blood analysis technology are available to approximately 30% of the Finnish workforce. By the end of the financial year, over 50,000 customers of Terveystalo had already received their risk assessment. The number of risk assessments performed in this short period is substantial both in Finland and globally, and it creates a new opportunity to make healthcare decisions based on comprehensive assessment of future health risks.

In Japan, we strengthened our position by acquiring Welltus Inc. With the acquisition Nightingale Health is in an excellent position to capitalize the established network of more than 200 hospitals in Japan and seek for new partnerships to expand the use of our technology in one of the major healthcare markets in Asia.

In Singapore, we started a collaboration with Singapore's leading clinical diagnostic service provider Innoquest Diagnostics, and its parent company Pathology Asia. Through the collaboration, Nightingale's health check will be available in Singapore and other regions of Southeast Asia. The establishment of our local laboratory and launch of our health check service in Singapore is progressing together with Innoquest Diagnostics, and we have already received regulatory approvals for many common clinically used biomarkers.

In the United Kingdom, we established a laboratory in the Porton Science Park in Southern England. With this local laboratory, we now have the capability for a large-scale clinical roll-out of our technology also in the UK. Furthermore, we expanded our longstanding research collaboration with ZOE Limited, a health science company running in-depth nutrition studies. As part of the collaboration, ZOE uses the VelvetTM blood collection device, to which we acquired all intellectual property assets at the end of the financial year.

In the United States, we entered into collaboration agreements with some of the strongest healthcare organizations, such as Mass General Brigham, Kaiser Permanente, Weill Cornell Medicine, Boston Heart Diagnostics, and 23andMe. In addition, we announced our plan to establish a laboratory in the United States. These collaboration agreements and the local laboratory will provide us with a strong foundation for growth in the largest healthcare market in the world.

I sincerely believe that during the next ten years, healthcare will not be only about health, but it will also significantly contribute to social and economic wellbeing. Therefore, our vision for the next ten years is not merely to build a better and more sustainable healthcare system, but also to enable social and economic prosperity with the help of our technology.

Teemu Suna

CEO and Co-founder, Nightingale Health Plc
 

Business targets in financial year 2023 - 2024

Nightingale Health's business targets for the financial year 2023 - 2024 were:

• Win an international commercial contract with a healthcare industry partner with significant reference and contract value

• In November 2023, Nightingale Health entered into a collaboration agreement with Innoquest Diagnostics, a leading clinical diagnostics service provider in Singapore. Innoquest Diagnostics is a subsidiary of Pathology Asia, and it will offer Nightingale Health's blood analysis service to healthcare providers in Singapore. In addition, the blood analysis service can be offered in the Southeast Asia region by other companies within the Pathology Asia group.

• Win an international commercial contract with a white label partner with significant reference and contract value

• In June 2024, Nightingale Health and 23andMe Holding Co. announced a strategic collaboration to pilot Nightingale Health's clinically validated and cost-effective blood metabolomics panel with a cohort of 23andMe members.

• Win contract(s) in medical research with a total contract value of at least EUR 3.2 million

• During the financial year, Nightingale Health won contracts in medical research with a total contract value of at least EUR 3.2 million.

In addition, Nightingale Health continued to pursue the FDA premarket authorization (510(k)). In parallel, Nightingale Health has examined the option to apply for CLIA and/or state certification, which enables providing certain services as a Laboratory Developed Test and potentially allows the company to take the first step as a local service provider in the United States market faster.

Nightingale Health made significant progress in all areas according to the set targets. In addition, Nightingale Health achieved several other milestones in the implementation of its technology in healthcare settings. The company is in an excellent position to pursue international growth in the healthcare market.

Business targets for financial year 2024 - 2025

Nightingale Health's business targets for the financial year 2024 - 2025 are:

• Win new large international deals

Nightingale Health aims to win new international flagship deals and convert pilots to commercial contracts to accelerate the adoption of Nightingale Health's technology in large-scale healthcare use

• KPI: Win a large-scale international healthcare project

• Increase revenue

Nightingale Health aims to continue increasing its revenue, despite the fact that new deals typically take more than 12 months to ramp-up and convert into revenue

• KPI: Increase revenue compared to previous financial year

• Improve efficiency

Nightingale Health will continue investing in growth while preserving the strong cash position and solid runway

• Improve adjusted EBITDA* level compared to previous financial year

*Adjusted EBITDA = EBITDA - shared-based payments - extraordinary items - items affecting comparability
 

Mid-term and long-term business targets
 

Nightingale Health's mid-term and long-term business targets remain the same.
Mid-term business targets are:

• To conclude an agreement to analyze two million samples annually in Europe
• To conclude an agreement to analyze ten million samples annually in the United States or in Asia
• To extend laboratory capacity in respective geographical areas to meet the analysis capacity required by the aforementioned agreements
• To achieve positive EBITDA

 

Long-term business targets are:
 

• To analyze 100 million blood samples from partnerships with the healthcare sector, health initiatives, and white label partners
• To generate EUR 500 million in annual revenue from partnerships with the healthcare sector, health initiatives, and white label partners

The Board of Directors' proposal on the management of the result of the financial period

The parent company's distributable non-restricted equity on 30 June 2024 was EUR 70,685,108. The parent company's net loss for the financial period totaled EUR -13,832,835.

In the coming years, Nightingale Health will focus on funding its growth and developing its business. The company is committed to a very strict dividend policy that is connected to Nightingale Health's result and financial standing. The company does not expect to distribute a dividend in the short or medium term.

The Board of Directors proposes to the Annual General Meeting that no dividend be distributed for the financial year 1 July 2023 - 30 June 2024 and that the loss of the financial year is recorded in retained earnings.

Live webcast for investors and media

Nightingale Health will arrange a live webcast for investors and media in English on 20 September 2024 at 2 p.m. EEST. The webcast can be followed online at:

https://nightingalehealth.videosync.fi/2023-2024-results

Presentation will be held by CEO Teemu Suna and CFO Tuukka Paavola. A recording of the event will be available later the same day at www.nightingalehealth.com/investors.

Helsinki, 19 September 2024

Nightingale Health Plc

Board of Directors

For further information, please contact:

Teemu Suna, CEO
ir@nightingalehealth.com

Certified Adviser:
Oaklins Merasco Ltd, tel. +358 9 6129 670

About Nightingale Health

Nightingale Health's mission is to build sustainable healthcare and reduce health inequalities. Nightingale Health has developed the world's most advanced health check that provides risk detection for multiple chronic diseases from a single blood sample. Nightingale's Health Check can be scaled to entire populations at a low cost, and it can replace many of the current clinical risk assessments. Detecting disease risks on a population level allows for the effective targeting and tracking of health interventions, and better prevention of the onset of chronic diseases. With every sample we help to create a healthier world.

Nightingale Health operates globally with a parent company in Finland and seven subsidiaries in countries such as Japan, the United States, Singapore, and the United Kingdom. Nightingale Health has customers in more than 34 countries in the healthcare and medical research sectors. The company's technology is being used in many of the world's leading health initiatives, such as the UK Biobank, and over 600 peer-reviewed publications validate the technology. The company's Series B shares are listed on the First North Growth Market Finland marketplace. Read more:https://nightingalehealth.com