Inflammatory bowel disease (IBD) affects 3m+ people in the US with >70,000 new cases diagnosed annually. It’s a long-term, chronic condition not only costing the country >$45bn pa & causing untold patient misery, but also sucking in vital hospital resource (eg A&E, doctors & beds).
Enter Trellus Health. A pioneering deep science based telemedicine firm that IPO’d in May raising £28.5m at 40p to commercialise its proprietary, resilience/AI led chronic disease management platform. Initially focused on treating IBD such as Crohns & colitis.
Indeed #TRLS' technology can accurately predict, identify & treat those sufferers most at risk of hospitalisation &/or requiring emergency care. Providing substantial quality of life, efficiency & cost saving benefits - whilst equally being applicable overseas (eg UK) & across other debilitating illnesses.
Ok, so how are things progressing?
Well in August #TRLS signed a major ‘Demonstration’ contract with Mount Sinai Health System - & equally last week agreed to provide it’s GRITTTM resilience system, telemedicine platform & associated expertise to Connected Health Medicine. A New York based provider that will offer multidisciplinary patient care for chronic medical conditions to its clients.
In my view both are ideal ‘soft-launch’ deals that should thoroughly ‘road-test’ all the moving parts. Before later offering similar ‘highly scalable’ services to much larger organisations, insurers & healthcare groups across not only the US (initially), but also later the world.
But that’s not all.
There’s plenty of cash too ($39.7m June) to fund the commercialisation strategy, alongside further accelerating the rollout if opportunities arise.
Elsewhere wrt valuation, if hypothetically Trellus Health only obtained 1% of the US market by say 2024. Representing 30,000 patients & generating profitable, recurring revenues of c. $100m & 30% EBITDA margins (Est). Then based on a 15x multiple, this would equate to a theoretical share price of 190p+/share vs 60p today.
Chairman Julian Baines MBE adding at today’s interims, that #TRLS was firmly on track to deliver against future key operational milestones, as well as securing additional new demonstration contracts over the coming months.