On March 20, 2023, Brain+ A/S (“Brain+” or “the Company”) announced that the Danish municipality Herning Municipality has decided to expand the already existing agreement, which almost doubles the initial contract value.
Brain+ closed the Company’s first municipal sale of its first CST-product – CST-Therapist Companion – on December 31, 2022, after launching the product on November 1, 2022. The contract covered the use of the “Basic Package” of the CST-Therapist Companion in one training facility for one year at an introductory price of 50.000 DKK. Herning Municipality has now decided to expand the existing contract to a municipal-wide license, which allows all therapist in Herning that works with people with dementia to get access to the basic package. The length of the contract has also been extended from 1 to 1,5 years, and the contract expansion as a whole nearly doubles the existing contract value.
“After roughly two months of market introduction, Brain+ closed the first municipal sale on December 31, 2022, and this contractual expansion clearly shows the potential for Brain+ to grow within a municipality after a first contract has been established, through higher tier packages that include services and broader geographic traction. Given that the municipal sales cycle usually varies between 6-18 months, Analyst Group considers that the fact that Brain+ has in four months not only closed the first sale of its CST-Therapist Companion-product but also expanded the contract value, is a sign of strength within Brain+’s DT-x offering and lays the foundation for further commercial traction going forward. Currently, Brain+ is in ongoing outreach and dialogues with the 30+ Danish municipalities that are using CST and this contractual expansion provides, according to Analyst Group, further commercial evidence and could enhance Brain+’s possibilities to close additional contracts with municipalities in coming quarters”, says the analyst at Analyst Group covering Brain+.
