On its first day of dealings following its admission to trading on London’s AIM market this morning, Trellus Health (TRLS ), said it has attracted strong demand from institutional and private investors after raising £28.5m as part of its IPO that it says was significantly oversubscribed.
Following the oversubscribed placing, Trellus, which is focused on commercialising a resilience-based, connected health solution for chronic condition management, with an initial focus on Inflammatory Bowel Disease (IBD), was valued at c.£64.6m on admission.
Trellus utilises its GRITT™ resilience-based methodology to deliver personalised and integrated patient care. The Group has an exclusive licence with ISMMS, the medical school of the Mount Sinai Health System to commercialise this patent-pending technology.
Its initial target market in IBD, which includes the chronic incurable conditions such as crohn's disease and ulcerative colitis, costs the United States around $20,000 a year per average patient, a baseline figure which is subject to inflation because of hospitalisations.
The estimated total annual financial burden of IBD in the US ranges from $30 to $50bn, including direct healthcare costs and indirect costs such as workdays lost due to illness.
Like many lifelong diseases, IBD also comes with a high mental health burden. The combined annual cost of chronic and mental health conditions and Inflammatory Bowel Disease (IBD) represents, respectively, over $3trn and $30-50bn total annual costs in the US.
In particular, Trellus highlighted that it has designed a business model that is focused on saving healthcare payers ‘a significant portion of inappropriate and unplanned healthcare utilisation costs’ associated with their high-cost high-need chronic condition patients.
Upon its admission to AIM, shares in Trellus Health jumped to 57.5p on Friday morning.
The Company intends to partner with business customers (health plans and self-insured employers) to save at least 20% annually on their costly IBD patients. In fact, the company said it believes that it can both achieve and surpass this 20%. significant savings for payers.
The group said it will utilise the proceeds of its fundraising to continue fund its licence with ISMMS and to continue the development and enhancement of its TrellusElevate platform and app, the vehicle by which the GRITT™ resilience methodology is delivered to patients.
The funds will also be used for a plethora of purposes including for research and academic collaboration and geographic expansion purposes, for future scientific development and partnerships and for general commercialisation, marketing and business development.
Commenting on the first day of dealings, Monique Fayad, CEO of Trellus Health said, “Our AIM IPO will enable us to scale our business and technology platform, and in turn inspire hope and significantly improve outcomes for people suffering with chronic conditions.”
Looking ahead, the Company highlighted that it expects initial revenue in 2021 through demonstration projects with healthcare payers since its connected care management solution and GRITTTM behavioral methodology are not currently subject to FDA regulation.
She added, “Our initial focus is on IBD in the US, but over time we anticipate expanding our reach to target selected additional geographies and to support other chronic conditions."
Trellus said it expects to ‘capitalise rapidly’ on its existing qualified pipeline of payer and pharmaceutical industry opportunities. Looking ahead, it believes that relatively modest adaptations of its GRITT methodology and technology platform will enable the Company to address other costly and widespread chronic conditions and expand internationally.
“By using the GRITTTM methodology to underpin our resilience-driven multidisciplinary care model, and leveraging expert whole-person care, data science and technology, we look forward to providing further validation from our demonstration projects,” Fayad added.
This will support the commercialisation of our solutions, as we strive to enable and deliver personalised and more cost-effective care for all people living with chronic conditions."
In a Q&A, Vox Markets speaks to CEO, Monique Fayad and Co-Founder Marla Dubinsky. Thy discuss how their resilience driven, connected health system addresses both clinical needs and behaviour targeting those suffering with chronic illness and how the system leads to positive health outcomes and cost savings for the health system and insurers. Watch here.
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