Brain+ A/S is a Digital Therapeutic company with the mission to restore patients’ independence and quality of life by treating and detecting cognitive decline in Alzheimer’s disease and dementia through Digital Therapeutics (DTx), also known as software-as-a-medicine (SaaM) applications. Brain+ has developed a set of DTx technologies, which enable the Company to create a unique and differentiated product offering. These technologies, combined with a strong clinical pipeline, puts Brain+ in a strong position to grow towards a market leader position in the DTx space. Brain+ is listed on First North Copenhagen since October 7, 2021.
Entering the commercialization phase
Since the IPO in November 2021, Brain+ has successfully scaled the management team, advanced in the R&D pipeline, attracted valuable collaborations, and, importantly, landed the Company’s first Big-Pharma partnership. Brain+ is now ready to enter the commercialization phase, roughly two years ahead of plan, with a launch in Denmark in Q4 2022 and Germany expected in Q2 2023. With the expected pipeline of product launches, Analyst Group estimates net sales of EUR 2.1m by 2024, and with an applied EV/S multiple, a potential present value per share of DKK 4.1 is derived in a Base scenario.
- Strong Momentum In The Commercialization Phase
In December 2021, Brain+ landed its first large pharma partnership deal with RoX Health (Roche) which gave increased momentum within the German market and enabled Brain+ to accelerate R&D and identify a faster route to the market. As a result, Brain+ has been able to advance the commercial launch for its first dementia product CST-Therapist Companion by approximately two years, with an expected launch in Denmark in Q4 2022 and Germany in Q2 2023. Germany has established itself as a leader in the adoption of digital medicine and is, therefore, a global reference market for DTx and succeeding there creates a strong springboard to other global markets for Brain+ going forward.
- Promising Strategic Collaborations
In addition to the already established partnership with RoX Health, Brain+ has reached other important milestones which lays the foundation for a successful commercial launch in Germany in 2023. In March 2022, Brain+ was selected to Biogen’s and EIT Health’s Neurotech-prize program, which gave access to world-class expertise within the German market as well as valuable support to shape the business model and go-to-market strategy for the Company’s products. Further, Brain+ partnered up with the German medical distributor Coopmed in August 2022, to work on the commercialization in Germany.
- A Material Funding Event Around The Corner
In conjunction with the capital rounds in 2021 (IPO and Pre-IPO), Brain+ issued shares, each including an accompanying warrant. Each of the warrants gives the holder the right to subscribe for a new Brain+ share in October 2022 at a 30% discount to the market price, which will be determined based on the VWAP during the 10-day period leading up to the Exercise window. The proceeds from the warrants will be used to fund further advancements in product development activities and for the projected launch and initial commercialization of Brain+ first dementia product on the Danish and German markets in 2023.
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Brain+ Begins Early Activity and Brand Building in The US
On the 19th of October 2022, Brain+ A/S (“Brain+” or the ”Company”) announced that the Company has been selected and featured as a 2022 TMC-Denmark Biobridge Partner in the new Texas Medical Center (TMC) new 2022 Biobridge e-book, hence building early traction within the US market.
Back in 2019, TMC – the world’s largest medical city – and the Danish Ministry of Health entered a collaboration and multi-faceted global life science Biobridge partnership to advance commercial and clinical innovation, to enable research collaborations and knowledge transfer. The Biobridge intends to serve as a marketplace for innovative life science technologies focused on digital & telehealth, medical devices, and operations.
By being a part of the TMC-Denmark Biobridge Partnership, Brain+ gains not only increased brand awareness at TMC and the US market as a whole, but also get access to valuable know-how and go-to-market research that opens up doors to explorative dialogues with American market participants within the healthcare space. Increased brand awareness within the US is of great importance for Brain+ in terms of future strategic partnerships and with the number of +USD 100m licensing/partnership deals that have been made during recent years, it is clear that life science participants are on the outlook for new partners, creating an opportunity for Brain+ going forward.
The US is the biggest healthcare market in the world and more than seven million people in the ages 65 or older had dementia in 2020. The price/reimbursement levels are also significantly higher than the rest of the world, roughly three times higher than in Europe, where prices could be beyond EUR 1,000 per treatment. Thus, the US market is highly attractive, and while Analyst Group has not explicitly modeled any revenues in the US within our forecast period, as the commercialization phase is estimated to be several years away, we consider the recent early signs of progress in the US as highly positive.
Read our latest equity report of Brain+ here.