Company release, Inside information
11 September 2023 at 12:30 (EEST)
Nightingale Health Plc’s (“Nightingale Health”) Board of Directors has approved an updated strategy which focuses on business to business (“B2B”) and business to governments (“B2G”) markets. The updated strategy builds on the significant contracts that the company has recently won and market feedback about the company’s strengths. Moreover, the updated strategy allows Nightingale Health to better focus and allocate its resources around its core intellectual property assets, competencies, and value creation capabilities.
For more focused and efficient execution, Nightingale Health will discontinue businesses where it has a direct relationship with consumers. Assets currently used in consumer-facing services can be repurposed to promote the company’s B2B and B2G offerings. The updated strategy puts the company in a position of strength for fast business growth and better value creation for its customers and shareholders, and is expected to improve return on past and future investments.
The updated strategy focuses on B2B and B2G markets
The updated strategy focuses on B2B and B2G markets to capitalize on the company’s strongest competitive advantages and maximize customer value.
Nightingale Health’s technology detects the risks of the most common chronic diseases from a single blood sample with less effort and without compromising detection accuracy compared to existing clinical risk assessment tools. While this unique capability offers various market opportunities, it is poised for greatest impact when the company’s technology is used to screen entire populations to detect health risks and target healthcare interventions to high-risk individuals. By better targeting available interventions it can help solve the most pressing challenge in modern healthcare: chronic diseases in an ageing population. These strengths can best be utilized by serving large-scale B2B and B2G markets with healthcare professionals as part of the foundation for a new preventative health system.
The updated strategy aligns with commercial traction
Nightingale Health’s competitive advantage in the B2B market is demonstrated by the recent significant announcement in occupational health in Finland as well as ongoing international negotiations.
Nightingale Health announced on 30 August 2023 that Finland’s largest private healthcare provider, Terveystalo, will start using Nightingale Health’s risk prediction models and blood biomarker values in regular health checks in occupational health. This significant contract demonstrates that Nightingale Health’s technology can seamlessly integrate into existing large-scale clinical workflows, where blood samples are systematically collected for nationally significant clinical purposes.
Ongoing negotiations have also provided market feedback and insights, strongly endorsing the company’s expansion in the B2B and B2G markets.
The updated strategy allows better operational focus
Nightingale Health’s core intellectual property assets are its proprietary blood analysis technology and risk prediction models, enabled by a unique access to the world’s biggest health data biobanks. These assets and related competencies are developed to fulfil the strict requirements of the healthcare industry and can be best utilized to provide value to healthcare professionals.
With a targeted focus based on the updated strategy, all company resources and operations can more efficiently align with the company’s core assets and capabilities.
The updated strategy defocuses D2C businesses
Nightingale Health has been offering services directly to consumers. This consumer business model is fundamentally different from the B2B and B2G sectors and continuing to run all these business models in parallel at the current stage of the company creates operational inefficiencies, which compromises rapid progress. Moreover, the company’s intellectual properties and capabilities create the most value in B2B and B2G markets, which is supported by strong market traction. Therefore, the D2C business will not be continued in the updated strategy.
The company recognizes, however, a trend where consumers are increasingly interested in their health. Therefore, Nightingale Health will access this market through B2B2C partnerships where the company’s offerings, including the blood sample self-collection capability, will be offered as a white label business model. This business model enhances the efficient use of the company’s commercial resources and enables rapid international expansion.
The updated strategy efficiently repurposes existing assets
The assets currently used in consumer-facing services, such as software modules and other tangible and intangible assets, can be repurposed to the B2B and B2G sectors to promote the company’s offerings as a part of sales and marketing activities and to help B2B and B2G customers adopt Nightingale Health’s solutions. For example, the company can offer its B2B and B2G customers an end-to-end solution from blood testing capability all the way to a mobile application for end-user result delivery.
Moreover, the assets created for the D2C market can be repurposed to demonstrate in a concrete manner how the company’s offerings work in practice. This has already been shown to substantially support sales and marketing activities.
The updated strategy allows faster business growth
The updated strategy allows Nightingale Health to pursue accelerated business growth with enhanced focus, delivering greater value for both its customers and shareholders.
The updated strategy is expected to improve the operational efficiency of the company and will not introduce new operational cost elements. With the change, the company expects improved return on past and future investments, along with stronger business growth.
“This strategy update is a natural next step on our journey to help create a healthier world. Over the past couple of years, we have operated multiple commercial tracks in parallel to comprehensively explore different business opportunities for our technology. This process has been elemental to capture insights and learnings from the market to define a more targeted business focus and the updated strategy announced today. With this update I’m confident in Nightingale Health’s market positioning. Our technology boasts several unique competitive advantages, the company is well-capitalized, and our operational efficiency is set to improve even further. Therefore, we are eager to embark on the next chapter of our journey,” said Teemu Suna, CEO and Founder of Nightingale Health.
The updated strategy will be presented as part of the financial year 2022–2023 results webcast for investors and media on 28 September 2023.
For further information, please contact:
Teemu Suna, CEO
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.
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 25 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 450 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