Nightingale Health Group’s Half-year report 1 July 2022 – 31 December 2022: Commercialization progressing in line with strategy

Nightingale Health Plc Half-year report 1 July 2022 – 31 December 2022 (unaudited)

Nightingale Health Group’s Half-year report: Commercialization progressing in line with strategy

Company Release, 23 March 2023 at 9:00 a.m. (EET)

This release is a summary of Nightingale Health Plc's Half-year report from period 1 July 2022 – 31 December 2022. The full Half-year report is attached to this release.

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

July-December 2022 key financials (IFRS)

• Revenue was EUR 2.24 (1.27) million
• EBITDA was EUR -5.46 (-4.13) million
• Operating loss was EUR -8.67 (-5.91) million
• Net loss for the period was EUR -8.55 (-5.76) million
• Unadjusted earnings per share (EPS) was EUR -0.14 (-0.10)
• Cash and cash equivalents at the end of the period were EUR 87.52 (105.41) million

Significant events during the half-year period

• A study of over 100,000 people was published in Nature Medicine, one of the world’s leading medical journals, further demonstrating that Nightingale Health’s blood test can identify early risk signs for many common diseases all at once and capture a unique cost-effective snapshot of a person’s health state. The study was conducted by researchers from universities in Germany, the Netherlands and the UK and is one more indication that Nightingale Health’s medical data generation platform can significantly support building a global preventative health system.
• In order to bring its preventative blood analysis technology to as wide use as possible, during the half-year period Nightingale Health has invested in sales, marketing and business development to win commercial contracts in the public healthcare sector, B2B market and medical research in accordance with the business targets set by the company.   
• As part of its international growth strategy Nightingale Health established a new subsidiary in the UK. In the UK, Nightingale Health aims to expand its partnerships within the medical research industry, and to make the technology available to UK’s healthcare system.
• In Japan, Nightingale Health has during the half-year period signed several new contracts with dozens of hospitals and clinics to expand the sales of the preventative health service offered by Nightingale Health Japan KK, a fully owned subsidiary of Nightingale Health Plc and Welltus Inc., a subsidiary of Japanese conglomerate Mitsui & Co Ltd.

Key figures (IFRS)

Share performance indicators

*) 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 world needs new ways to prevent chronic lifestyle diseases. Disease prevention is the most effective way to reduce ever-increasing healthcare costs and increase the number of healthy years for everybody. At Nightingale Health, we want to enable a healthcare system that is not about waiting for people to get sick but instead about preventing the onset of diseases well in advance.

Prevention is only possible if we can identify the people at the highest risk and target prevention to them. Nightingale Health's blood test is one of the few realistic solutions for national multi-disease risk screening that can be used to identify the individuals at the highest risk of disease. Our test is affordable enough and needs little background information (age and sex) and only a small amount of blood.

In autumn 2022, an independent study based on the data of more than 100,000 people, published in the scientific journal Nature Medicine, showed that Nightingale Health's blood test could, from a single blood sample, identify the early risk signs for several common diseases better than existing solutions and in a cost-effective manner. The publication demonstrates that Nightingale Health's blood test is effective in identifying people at high risk and it improves the prediction of several costly diseases, such as heart failure, dementia, and diabetes. The published article highlights the applicability of our technology to large-scale health screenings that identify disease risks.

During the half-year period, we have invested in the commercialization of our technology and sales of our services. We continued our international expansion by establishing a UK subsidiary and hiring a local team. We will establish a laboratory in the UK by the end of the current calendar year and thus aim to expand our partnerships in the research market in the UK. In the next phase, we aim to bring our technology into private and public healthcare use in the UK.

In Japan, after setting up the country operations and establishing a local laboratory, we have focused on building an extensive network of hospitals and clinics, making selling our services possible. By the end of the half-year period, we had signed contracts with more than a hundred different hospitals and clinics. As I have previously highlighted, entering the Japanese healthcare system is a significant achievement for a European company.

We have also continued the development of Livit by Nightingale Health, our consumer service that utilizes the at-home test solution, launched in spring 2022, and built new distribution channels for its sales and marketing.

We will continue our work towards bringing our technology to the broadest possible use by public healthcare operators, scientific research institutes, and private companies. The work requires patience and is not always easy, but we're already a long way down the road.

Teemu Suna

CEO and Founder, Nightingale Health Plc

Business targets for the financial year 2022–2023

Nightingale Health’s business targets for financial year 2022–2023 are:

• Win a significant commercial contract in the public healthcare sector

• The contract enables tapping into major existing blood sample volumes and bring Nightingale Health prevention tools to public health.

• Win B2B commercial contract(s) with more than 50,000 blood samples

• The contract(s) enables tapping into major existing blood sample volumes and demonstrating Nightingale Health’s unique value creation capability in disease prevention.

• Win contract(s) in medical research with more than 175,000 blood samples

• The contract(s) enables tapping into major blood sample volumes and delivering strong impact of Nightingale Health’s technology to advance global medical science.

Nightingale Health launched the Livit at-home testing consumer service in spring 2022 and the service is available in selected markets. The development of the consumer business will continue to be a key focus area in the company’s strategy. The company will release financial targets for the consumer business later when there is more data available for the forecast.

Additionally, Nightingale will continue to pursue the FDA 510k approval, which will broaden company’s B2B offering to diagnostic applications in the US. 

In addition to the targets set for the financial year 2022‒2023, Nightingale has medium- and long-term targets that are described on Nightingale Health’s website. The mentioned targets remain unchanged.

Significant events after the reporting period

• 25 January 2023 Nightingale Health announced that it will open a laboratory in the UK during 2023 as part of its international growth strategy.
• 31 January 2023 Nightingale Health acquired a worldwide license and rights to blood self-collection device Velvet™ from Weavr Health Corp. The acquired license gives Nightingale Health the rights to independently manufacture the Velvet™ devices and commercially use the devices in connection with Nightingale Health’s services. In consideration of the royalty free license, Nightingale Health gave up its rights based on the convertible loan (original investment of approximately EUR 3.5 million).
• 3 February 2023 Nightingale Health announced that it had completed the integration of genetic information to the Livit by Nightingale Health service. The introduction of genetic results into its consumer service follows the company’s announcement in January 2022 of expanding into genetics by acquiring Finnish genetics-testing company Negen Ltd. and launching an international excellence center of genomic data analysis. By combining information about how lifestyle affects the dynamic state of one’s health with the static inherited state, Livit can provide health risk assessments that are superior to any traditional health risk analysis.
• 8 March 2023 Nightingale Health announced that its strategic collaboration in Estonia had progressed. Nightingale Health had analyzed and delivered to Estonian Biobank the analysis results from blood samples of 200,000 Estonian Biobank participants. The collaboration between Nightingale Health and Estonian Biobank enables the biomarker data from 200,000 samples to be used to advance scientific medical research. In addition, the data will be used to bring novel health insights, such as health risk estimates, to the biobank participants to enable disease prevention.
• 17 March 2023 Nightingale Health published a notice to an Extraordinary General Meeting that will be held on Monday, 24 April 2023. The Board of Directors proposes regarding the election of members of the Board that Lotta Kopra and Tom Jansson will not continue as members of the Board of Directors and that its current members Antti Kangas, Olli Karhi, Leena Niemistö, Timo Soininen and Teemu Suna continue on the Board of Directors. The Board of Directors proposes that Ilkka Laurila is elected to the Board of Directors as a new member for a term that expires at the end of the next Annual General Meeting.

Live webcast for investors and media

Nightingale will arrange a live webcast for investors and media in English on 23 March 2023 at 2 p.m. EET. The webcast can be followed online at:

https://nightingalehealth.videosync.fi/2022-2023-h1-results

A 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 nightingalehealth.com/investors.

Helsinki, 23 March 2023

Nightingale Health Plc

Board of Directors

For further information, please contact:

CEO Teemu Suna
ir@nightingalehealth.com

Certified Adviser:

Oaklins Merasco Ltd, tel. +358 9 6129 670

About Nightingale Health

Nightingale Health is The Preventative Health Company. Staying healthy is one of the top priorities in human life. Our health has a profound impact on our quality of life, and it’s also strongly connected to the lives of those close to us. Nightingale Health enables prevention by combining the power of our in-house developed, advanced blood analysis technology with unprecedented access to global health repositories and world-leading medical research. With this combination, we go beyond the traditional healthcare and wellbeing tools: We provide the scientific connection to multiple health and disease outcomes and the ability to predict future healthy years.

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