Adherium $35m ASX IPO to expand sales of digital health technology to improve medication adherence

–          Digital health company’s technology proven to improve adherence and patient health in chronic respiratory disease

–          $25.85m in signed commitments, AstraZeneca US$3m cornerstone investment; led by Bell Potter Securities

–          First-in-class 10 year Supply and Development Agreement with AstraZeneca

–          Technology has been used in 40 projects, across 29 countries, with 32 publications referencing Smartinhaler

5 August 2015 – link here.

Australians and New Zealanders have an opportunity to invest in a highly promising digital health technology company that substantially improves medication adherence and patient health outcomes with the imminent Australian Securities Exchange (ASX) listing of Adherium Limited.

Adherium develops and manufactures digital health technologies that address sub optimal medication use in chronic diseases. The Company’s first product range, Smartinhaler™, is proven to significantly improve patient medication adherence to preventative inhaled therapies that are used in the management of chronic respiratory diseases and to significantly improve health outcomes in people with asthma.

The Company is seeking to raise a maximum of $35 million with the issue of up to 70 million shares at $0.50 per share. At the date the Company lodged its prospectus it already had in excess of $25m committed, including a cornerstone investment of US$3 million by key commercial client AstraZeneca.

Adherium’s proprietary Smartinhaler™ platform comprises of a range of approved medical devices that attach to prescription inhalers and record usage data. The devices automatically transmit the data using the SmartinhalerLive™ wireless communications software to a Smartphone App, home monitoring hub, or PC, and then to the Company’s cloud-based servers, where it can be accessed by the patient’s health care professional and care giver.

The Smartinhaler™ platform targets the issue of medication non-adherence that has been estimated to cost the global economy US$300 billion per annum. For example, in Australia it is estimated that only 43% of people with asthma take their medication as prescribed and only 11% use their prescribed preventative medication on a daily basis. Regular use of preventative medications reduce the frequency of asthma attacks and reduce visits to doctors and hospitals.

Adherium Group Chief Executive Officer Garth Sutherland said, “As someone with asthma, I understand how difficult it can be to remember to take preventative medications every day as prescribed. The Smartinhaler platform transforms asthma and COPD management, resulting in patients experiencing significant improvements in quality of life, and doctors have accurate and objective information to help them best manage their patients. I believe every person with chronic respiratory disease can benefit from having a Smartinhaler.”

Currently clinicians do not have a system in place to record medication usage patterns and rely heavily on patient feedback, which has been demonstrated in medical research to be unreliable.Smartinhalers record the date and time of patient medication use, transmit audio and visual reminders when the patient has missed a dose, and the patient medication usage patterns can be used by doctors to identify when patients may benefit from intervention to ensure their condition is controlled to avoid exacerbations.

Clinical outcome studies have demonstrated that the Smartinhaler™ increases medication adherence by up to 59% in adults and 180% in children. In a study in adults with asthma undertaken at the prestigious Woolcock Institute in Sydney, a 60% reduction in severe attacks was observed.

The commercial value of the technology is demonstrated by the Company’s recent announcement of a long term supply and development agreement with global pharmaceutical leader AstraZeneca. This is a first-in-class collaboration, whereby Adherium’s Smartinhaler technology will be supplied alongside AstraZeneca’s leading respiratory medications.

Adherium intends to use the proceeds of the IPO to supply commercial quantities of Smartinhalers to key customers via its business-to-business distribution model and accelerate the international commercialisation of the Smartinhaler™ platform. The Smartinhaler device has European CE marking, and has been cleared for marketing by the US FDA, Australian TGA and New Zealand’s MedSafe.

 

Based on the maximum subscription at 50 cents per share, the market capitalisation of Adherium upon listing will be $70 million. The IPO opened on 4 August and closes on 14 August with Adherium expected to commence trading on the ASX on 26 August.

Bell Potter Securities is the lead manager of the IPO.

Enquiries:

 

Bronwyn Le GriceAdherium Limited

Head of Commercial Development & Corporate Affairs

+61 424 862 600

 

Rudi Michelson Monsoon Communications

03 9620 3333