Trading Update & Related Party Transaction

RNS Number : 2343K

Trellus Health PLC

20 December 2022

 

Trellus Health plc

("Trellus Health" or the "Company")

Trading Update & Related Party Transaction

LONDON, U.K. AND NEW YORK, U.S. (20 December 2022).  Trellus Health plc (AIM: TRLS), which is commercializing a scientifically validated, personalized resilience-driven self-management solution for chronic health conditions at their intersection with mental health, provides an update on trading expectations for the current financial year and additional disclosures under AIM Rule 13.

In respect of the financial year ending 31 December 2022, the Company expects to report that it will have generated modest revenue and an EBITDA loss in line with expectations. As at 31 December 2022 the Company's net cash position is expected to total no less than $18 million, slightly better than expected and reflecting the Company's close control of cash. As previously announced in the Company's interim results announcement, and assuming only the level of revenue at that time is maintained, the Company's cash runway is expected to extend into 2025.

The Company expects to provide a more detailed trading update by early February 2023.

As previously announced, the Company signed two contracts with the Mount Sinai Health System ("Mount Sinai") to provide certain patients with access to the Trellus Resilience Training and Self-Management Program for Inflammatory Bowel Disease (the "Trellus IBD program") (the "Contracts").

The first contract will see Mount Sinai make the Trellus IBD program available to, and paid for, as a wellness benefit, to all Mount Sinai Health System employees, focusing initially on Inflammatory Bowel Disease ("IBD"),including Crohn's Disease and ulcerative colitis.Mount Sinai has a robust employee wellness program which is offered free of charge to all faculty and staff. The second contract is to make the Trellus IBD program available, again as a wellness benefit, to eligible patients who are members of a large NY state labor union, which provides health services and benefits to its members through Mount Sinai. 

Whilst there is no minimum revenue guarantee under the Contracts, the Trellus IBD program is being made available from 1 January 2023 as a wellness benefit to eligible participants who have been made aware of the offering. These Contracts support the Company's strategy of rolling out its solution to a wider patient audience.

The Company expects to provide further commentary on its business development opportunities when it issues its further update in early 2023.

Related Party Transaction

Mount Sinai is a substantial shareholder in the Company and is represented on the Trellus Health Board by Dr. Erik Lium. Dr. Marla Dubinsky, CEO of Trellus Health, is also a professor of pediatrics and medicine at the Icahn School of Medicine at Mount Sinai. As the Contracts have the potential to generate revenue which could exceed the relevant threshold for classification as a related party transaction under the AIM Rules, the Contracts are classified as related party transactions pursuant to the AIM Rules for Companies.

The independent directors of the Company (being Julian Baines, Mike Salter, Christopher Mills, Dr. Daniel Mahony and Traci Entel), having consulted with Singer Capital Markets as the Company's Nominated Adviser, consider that the terms of the Contracts are fair and reasonable insofar as the Company's shareholders are concerned.

For further information please contact:

Trellus Health plc		https://trellushealth.com/
Julian Baines, Non-executive Chairman		Via Walbrook PR
Dr. Marla Dubinsky, Chief Executive Officer
Steve Young, Chief Financial Officer
Singer Capital Markets (Nominated Adviser and Broker)		Tel: [phone]
Aubrey Powell / Jen Boorer
Walbrook PR	Tel: [phone] or  [e-mail]
Paul McManus / Sam Allen / Phillip Marriage	Mob: [phone]

About Trellus Health plc ( www.trellushealth.com )

Trellus Health (LSE: TRLS) is the first resilience based digital health company focused on the intersection of chronic illness and mental health. Trellus Health integrates its proprietary resilience-based methodology with the technology, tools and team to deliver a whole-person technology-enhanced experience that results in relieving disease burden, building self-management skills and promoting individual health behaviors that enable thriving in the face of a chronic condition. Through its TrellusElevate™ connected health platform and companion App, the company addresses both physical and behavioral health together, in context, to improve outcomes and reduce healthcare costs across the healthcare ecosystem.

The Company is initially focused on Inflammatory bowel disease ("IBD"), which includes the chronic incurable conditions of Crohn's Disease and ulcerative colitis, and shortly Irritable Bowel Syndrome ("IBS"), but, given the common struggles of self-management, considers its approach to have potential utility and demand across many chronic conditions.

The TrellusElevate™ platform is the Company's proprietary connected health platform that incorporates the GRITT™ methodology and learnings on resilience from clinical research and practice conducted at the Mount Sinai IBD Center for more than five years. This proprietary, resilience-driven methodology has been scientifically validated to demonstrate meaningful improvements in patient outcomes, 71% reduction in Emergency Department (A&E) visits, and 94% reduction in unplanned hospitalisations, which the directors of the Company believe indicates the potential for significant cost savings for healthcare payers. Patients with IBD treated using the methodology also experienced a 49% reduction in required opioid use and a 73% reduction in corticosteroid use 12 months following starting the program².

The Company was founded by Mount Sinai faculty members Marla C. Dubinsky, MD and Laurie Keefer, PhD, both with decades of combined experience in IBD and psychogastroenterology, respectively. Trellus Health's patent-pending GRITT™ resilience assessment and personalized resilience training methodology was developed and validated at the Mount Sinai Health System to build resilience and wellness for improved outcomes at lower cost.

Shares in Trellus Health were admitted to trading on AIM in May 2021, under the ticker TRLS. For more information on Trellus Health, visit:  www.trellushealth.com

1) Source: https://www.cdc.gov/chronicdisease/about/costs/index.htm )

2) Source: https://www.sciencedirect.com/science/article/pii/S1542356521012258 ).

 

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