Brain+ is set to deliver on an ambitious UK commercial plan to reach recurring revenue of DKK 7-8 million by 2025 and DKK 25-27 million by 2027

Copenhagen, Denmark, 13 September 2024 - Brain+ A/S (Nasdaq First North: BRAINP)

Summary: Brain+ is preparing for UK market release of its first product, the CST-Assistant, by end September 2024 to offer scalable Cognitive Stimulation Therapy (CST) and better serve the ~1 million people living with dementia in the UK. The release will take place against a backdrop of highly supportive UK market conditions, highlighted by strong political support, new Right Care guidelines, which specifically emphasize the benefits of CST in dementia care, and a recent audit of UK memory services demonstrating a widespread readiness among NHS institutions to offer CST at scale. With the clinical relevance of the CST-Assistant validated and endorsed, a commercial team with a strong UK sales track-record in place, and positive feedback from pre-commercial market outreach, Brain+ is set to deliver on an ambitious UK commercial plan. The company confirms to target first UK sales in 2024 and UK business break even by end 2025 based on expected annual recurring revenue of DKK 7-8 million, which is expected to scale to DKK 25-27 million by 2027. The ability of Brain+ to execute on its commercial plan will depend also on the level of funding available for the Company until expected operational break even by late 2026.

• New UK Right Care guidelines emphasize the benefits of evidence-based interventions like Cognitive Stimulation Therapy (CST) for dementia care

• A recent UK Memory Assessment Services audit reveals that 76% of the country’s National Health Services (NHS) are ready to offer CST at higher scale

• Brain+ conversations with potential UK customers highlight a pressing need for solutions like the CST-Assistant to enable and support scaled CST adoption

• The CST-Assistant will be launched end September as a Medical Device Software with a validated product-market fit

• Brain+ commercial plan targets 104 identified NHS services primed for CST adoption

• Proven SaaS (Software as a Service) business model shall enable scalable recurring revenue to Brain+ from 2025

• Brain+ expects to reach DKK 7-8 million in annual recurring revenue by end 2025 and scale to DKK 25-27 million by 2027

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Cognitive Stimulation Therapy (CST): The best kept secret for better dementia treatment

In August this year, The UK National Health Services (NHS) released its new Right Care guidance, directing the country’s health care system on how to best organize and spend resources. The guidance emphasizes the need for improved care pathways and specifically mentions the importance of evidence-based interventions like Cognitive Stimulation Therapy (CST) for dementia. Dementia affects approximately 1 million people in the UK and represents a severe and growing burden on the healthcare system and on society as a whole.

CST is an intervention therapy, which has demonstrated clinical benefits for people with dementia corresponding to a 6-month delay in cognitive decline and better quality-of-life. However, despite growing recognition of its strong potential, adoption of the therapy remains relatively low due to several barriers, including lack of healthcare personnel resources and logistic barriers.

Brain+ A/S (“Brain” or the “Company”) is on track to release the CST-Assistant as a Medical Device Software on the UK market by end September 2024 to offer CST at scale. The product-market fit of the product was earlier in 2024 validated in a clinical trial conducted at two AgeUK sites and its relevance endorsed by Professor Amy Spector, the founder of CST.

Devika Wood, new UK-based Chief Commercial Officer at Brain+, stated:  

“Based on our initial commercial outreach on the UK dementia care market, I believe CST to be the best kept secret for better dementia treatment. Even if CST has the highest adoption rate in the UK of any country in the world, still the documented benefits and enormous potential of this therapy are unknown to many in the healthcare system. The ability of our CST-Assistant to standardize high-quality and scalable CST delivery aligns perfectly with the new Right Care principles of providing appropriate, timely, and effective care for people with dementia.  We have set a commercial plan which targets 104 NHS Services primed for CST adoption and our sales targets are backed by concrete market demand.”

UK commercial plan targeting selected NHS institutions to be executed by UK team with strong healthtech sales track-record

Together with the leading UK based healthtech commercial advisor, Quiddity Health, Brain+ has developed a vetted commercialization strategy for the CST-Assistant in the UK market.

To execute the strategy, an in-house UK-based Brain+ commercial leadership team is now in place, led by Devika Wood, new Chief Commercial Officer. Devika brings a strong track record of successfully scaling healthtech solutions in the UK and beyond, having delivered multi-million pounds contracts and exponential revenue growth in her previous ventures. Complementing Devika is Fiona Costello, new SVP of Partnerships. Fiona has extensive experience in forging strategic business partnerships with UK national healthcare providers and penetrating complex healthcare markets, and she has driven the adoption of innovative health technologies across international health systems.

The commercial team has developed a targeted UK commercial plan, focused initially on selling the CST-Assistant as a Software-as-a-Service (SaaS) product to NHS Trusts as the primary target market. The plan focuses on 104 NHS institutions primed for scaling their delivery of CST to people with dementia. The selection criteria for the first wave of sales targets are threefold, so focus will initially be on dementia care institutions, which have 1) existing CST offering and therapeutic knowhow, 2) a strong digital health adoption track record, and 3) a dedicated dementia care strategy. Sales conversations with NHS trusts are conducted primarily by the SVP of Partnerships, while other target segments, like public and private Care Homes and Insurance companies, are handled by the CCO. In-depth specialist conversations will be supported by the full Brain+ team.

Key 2024 milestones in UK commercial plan:  

• September – Launch new Brain+ branding and awareness campaign to increase and accelerate awareness of our unique approach and CST offering in our target market
• September – Introduce the CST-Assistant as a new Medical Device Software to offer scalable CST. Following commercial release of the CST-Assistant, targeted outreach to identified key CST stakeholders and decision makers in selected NHS trusts will begin. 
• October - Publish White Paper on the CST-Assistant, highlighting the benefits of our product as a new and innovative approach to high-quality and scalable CST delivery that actively addresses the current barriers to adoption in the UK 
• October - Launch webinar with key partners and CST advocates for an introduction to CST and the CST-Assistant, bringing the white paper and its core messaging to life. 
• November/December – Build pipeline of active customer leads among NHS Trusts
• November/December – Close the first UK sale in the form of ‘evaluation track’ type of contract with NHS trust, in range of 10.000-30.000 pounds. Such early contracts are expected to set the basis for transition into larger, recurring SaaS contracts from 2025

Projected strong UK sales trajectory for 2025-2027

Brain+ has progressed according to plan following the launch of its UK focused commercial strategy in Q1 2024 and is now on the brink of commercialization in the UK. With a UK dementia market ripe for scalable CST adoption, the CST-Assistant validated and ready for launch as a Medical Device Software, and a targeted commercial plan in place to be executed by an experienced commercial team, scalable sales and proof-of-business are within reach.

Concretely, Brain+ has the following sales projections for the coming years:

• 2024: Close early NHS ‘evaluation track’ contract(s) with a combined UK sales value of DKK 0.15-0.2 million
• 2025: Close additional sales contract to reach DKK 7-8 million in recurring revenue by end year.
• 2026: Scale sales to a level of DKK 11-12 million in recurring revenue
• 2027: Reach a level of DKK 25-27 million in recurring revenue

The sales projections are supported by a plan of releasing additional Brain+ CST products in 2025 and 2026 to further scale the company’s healthtech offerings through remote delivery of the therapy and interacting with people at home.  The ability of Brain+ to execute on its UK commercial plan and meet the sales targets will also depend on the level of funding available for the Company until expected operational break even by late 2026.

Contact Information 

CEO and Co-founder: Kim Baden-Kristensen, + 45 31 39 33 17 (SMS), [email protected]