Nightingale Health’s Half-year report: Healthcare implementations progressing in Finland and Singapore

Nightingale Health Group’s Half-year report 1 July 2023 – 31 December 2023 (unaudited)

Nightingale Health’s Half-year report: Healthcare implementations progressing in Finland and Singapore

Company release, 7 March 2024 at 8:00 a.m. (EET)

This release is a summary of Nightingale Health Plc's Half-year report from period 1 July 2023 – 31 December 2023. The full Half-year report is attached to this release.

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

- Revenue was EUR 1.71 (2.24) million

- EBITDA was EUR -5.36 (-5.46) million

- Operating loss was EUR -9.31 (-8.67) million

- Net loss for the period was EUR -8.53 (-8.55) million

- Unadjusted earnings per share (EPS) was EUR -0.14 (-0.14)

- Cash and cash equivalents on 31 Dec 2023 were EUR 72.61 (30 June 2023: 80.64) million

Significant events during the half-year period

- Nightingale Health updated its strategy and will focus on B2B and B2G markets. The company sees these areas as the best opportunities to leverage its competitive advantages and create value for customers. As part of the updated strategy, Nightingale Health discontinued businesses where it had a direct relationship with consumers.

- Nightingale Health expanded its partnership with Finland’s largest health service company, Terveystalo, to cover Terveystalo’s occupational health services. The agreement signed in August 2023 incorporates Nightingale Health's blood analysis technology into regular health checks performed as part of Terveystalo's occupational health services. Terveystalo begun using Nightingale Health’s blood analysis technology as part of its occupational health services throughout Finland on 2 January 2024.

- Nightingale Health entered into a collaboration agreement with Innoquest Diagnostics, a leading clinical diagnostics service provider in Singapore. Innoquest Diagnostics is a subsidiary of Pathology Asia, and it will offer Nightingale’s blood analysis service to healthcare providers in Singapore. In addition, the blood analysis service can be offered in the Southeast Asia region by other companies within the Pathology Asia group.

- Nightingale Health entered into an agreement to provide blood analysis service for a large U.S. healthcare system, Mass General Brigham. The agreement will make critical biomarker data available to Mass General Brigham’s researchers as they work to bring scientific findings to the healthcare setting to improve patient outcomes.

- Nightingale Health completed the analysis of blood samples from all 500,000 UK Biobank participants, creating the world's largest blood biomarker database for chronic disease research and prevention. The data is globally accessible to approved researchers undertaking health-related research that is in the public interest. The wide scientific use of Nightingale Health's biomarkers has already enabled the company's technology to be routinely adopted in clinical settings (Terveystalo in Finland), marking a leap forward in chronic disease treatment and prevention.

- Nightingale Health rolled out a remote blood collection kit (VelvetTM) also for its medical research and clinical trial customers. The groundbreaking blood collection service enables study designs that have previously been constrained by geographical and logistic limitations.

- A research study abstract submitted by experts from Nightingale Health won the American Heart Association’s Paul Dudley White International Scholar Award.

- Nightingale Health received three new patents.

Key figures (IFRS)

* Employee benefits include expenses in accordance with the IFRS 2 Share based payments standard, which totaled EUR 1.49 (1.66) million in the half-year period.

Share performance indicators*

* The table does not show the P/E ratio because it is negative.

** 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

Nightingale Health’s mission is to build sustainable healthcare and reduce health inequalities. We need a more sustainable healthcare system because the number of people suffering from chronic diseases has grown too large, and the healthcare system is overburdened.

The main function of primary care is to promote health and prevent the onset of diseases. Primary care continuously carries out preventative work against chronic diseases, but the tools available for this are not efficient. They require substantial time and resources from healthcare professionals, and therefore, can only be used for a small part of the population.

Primary care needs an efficient tool that makes it possible to extend the prevention of chronic lifestyle diseases to the entire population.

Nightingale Health’s unique blood-based health check is such a tool. The health check can replace many of the current routine tests in healthcare, and it can be used to broadly assess disease risks at the population level without burdening the already scarce healthcare resources. The health check requires little background information (age and sex) and only a small amount of blood. By detecting health risks on a population level, health interventions can be targeted to the ones that need them the most, and the onset of chronic diseases can be prevented more efficiently.

In September 2023, we published a strategy update and announced that going forward, we would focus on the B2B and B2G markets. We updated our strategy so that we can concentrate on solving the biggest challenge in healthcare globally.

The implementation of the new strategy has started well. Terveystalo, Finland’s largest private healthcare provider, has adopted our health check, utilizing the risk assessments and diagnostic blood values in regular occupational health checks. This demonstrates that our technology brings added value to healthcare and can be successfully integrated into existing clinical operations, where blood samples are taken systematically on a nationally significant scale. Terveystalo’s occupational health services cover approximately 700,000 employees, almost a third of Finland’s workforce.

In Singapore, we were excited to start our partnership with Innoquest Diagnostics, a leading clinical diagnostics service provider, and its parent company, Pathology Asia. Through this collaboration, our health check will become available in Singapore as well as other parts of the Southeast Asia region. Singapore’s health ecosystem is one of the most advanced globally, and we have already been privileged to serve multiple medical research institutions in the country for several years. The clinical implementation of our health check in Singapore is a significant achievement, which allows us to contribute to the advancement of preventative healthcare in Singapore. The launch of the health check in Singapore is progressing in collaboration with Innoquest Diagnostics, and as we announced a few weeks ago, we have already received the first regulatory approval in Singapore.

During the half-year period, we also announced the completion of the analysis of blood samples from all 500,000 UK Biobank participants. Completing the project is a culmination point for the company’s long-term product development phase, which has lasted almost ten years. No other company in the world has managed to reach a similar level of scientific scrutiny and medical evidence in understanding chronic diseases as Nightingale Health has. The evidence obtained has enabled the adoption of our technology at national and international levels in healthcare. From these starting points, we are in an exceptional position to expand the use of our technology in large-scale healthcare initiatives worldwide.

We are extremely proud of our achievements over the past ten years, but this is just a start. With this pace of scientific and technological progress, we will soon be replacing many of the current solutions in primary care with better tools for chronic disease detection to make our health systems more preventative, effective, and smarter. This will bring an exciting and better future for everyone.

Teemu Suna

CEO and Founder, Nightingale Health Plc

Business targets for the financial year 2023 – 2024

Business targets for financial year 2023 – 2024 are:

• Win an international commercial contract with a healthcare industry partner with significant reference and contract value (achieved in November 2023 when the company entered into collaboration agreement with Innoquest Diagnostics, a leading clinical diagnostics service provider in Singapore).
  • The strategic rationale for the target is to continue to demonstrate the business value of Nightingale Health’s technology in high volume clinical use cases to accelerate business growth
• Win an international commercial contract with a white label partner with significant reference and contract value
  • The strategic rationale for the target is to demonstrate Nightingale Health’s unique value creation capability and offering in B2B2C to capture strong market share
• Win contract(s) in medical research with a total contract value of at least EUR 3.2 million
  • The strategic rationale for the target is to continuously demonstrate Nightingale Health’s unique value creation capability in medical research and further strengthen the outstanding scientific evidence to accelerate clinical translation.

In addition, Nightingale Health will continue to pursue the FDA premarket authorization (510(k)). In parallel, Nightingale Health examines the option to apply for CLIA and/or state certification, which enables providing certain services as a Laboratory Developed Test and potentially allows the company to take the first step as a local service provider in the United States market faster.

Mid-term and long-term business targets

Mid-term business targets are:

• To conclude an agreement to analyze two million samples annually in Europe
• To conclude an agreement to analyze ten million samples annually in the United States or in Asia
• To extend laboratory capacity in respective geographical areas to meet the analysis capacity required by the aforementioned agreements
• To achieve positive EBITDA

Long-term business targets are:

• To analyze 100 million blood samples from partnerships with the healthcare sector, health initiatives, and white label partners
• To generate EUR 500 million in annual revenue from partnerships with the healthcare sector, health initiatives, and white label partners

Significant events after the end of the period

- On 2 January 2024 Nightingale Health announced that Terveystalo had begun using Nightingale Health’s blood analysis technology in regular health checks in occupational health throughout Finland.

- On 19 January 2024 Nightingale Health announced that it is joining Radical Health Festival Helsinki as the Founding Partner.

- On 31 January 2024 Nightingale Health announced that it had received five new patents in Finland. With these five new patents the company’s patent portfolio expands to cover additional health areas such as infectious diseases and anemia.

- On 23 February 2024 Nightingale Health announced that it had received regulatory approval for healthcare use from Health Sciences Authority in Singapore.

Live webcast for investors and media

Nightingale will arrange a live webcast for investors and media in English on 7 March 2024 at 2 p.m. EET. The webcast can be followed online at:

https://nightingalehealth.videosync.fi/2023-2024-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 www.nightingalehealth.com/investors.

Helsinki, 6 March 2024

Nightingale Health Plc

Board of Directors

For further information, please contact:

Teemu Suna, CEO, +358 20 730 1810
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.

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 34 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 600 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

NightingaleHealthPlc_Half-year_report_July-December_2023.pdf