Sensyne Health plc

("Sensyne" or the "Company")

Update on Trading, Formal Sale Process, Commercial Progress and Proposed Financing

Oxford, U.K. -14 January 2022: Sensyne Health plc (LSE:SENS) ("Sensyne" or the "Company") today announces updates regarding the Company's trading, ongoing Formal Sale Process ("FSP"), commercial progress, and financial position including a proposed financing.

Trading update

Patient Data Strategy

Sensyne made strong progress during the first half of its financial year to 31 October 2021 with its stated aim of building a best-in-class, international database of ethically sourced, de-identified and anonymised patient data. Through its partnership with NHS Trusts and Healthcare Systems, the Company has access to detailed information on demographics, diagnosis, treatment, medication, biochemical and genetic tests and procedures, images, pathology, vital signs and genomics data.

Sensyne has continued to build on the progress made in securing new strategic research agreements from the UK NHS and US health systems. In December 2021, Sensyne signed a strategic research agreement with Cambridge University Hospitals NHS Foundation Trust to access 3 million patient records bringing the total of anonymised records in the UK to 12.9 million patients. In October 2021, Sensyne signed a strategic teaming agreement with OMNY Health. Under the terms of this agreement, Sensyne can contract for access to OMNY Health's platform of more than 22 million de-identified patient records across all therapeutic areas to complement the 13.4 million records accessed through three strategic research agreements with US health systems entered into earlier in 202, bringing the total to 35.4 million US patient records.

The Company now has 16 strategic research agreements with NHS Trusts and US healthcare health systems and a real-world database of 48.3 million patient records, as well as access to a clinical trials database of a further 42.0 million patients from its collaboration agreement with Phesi. Sensyne continues to expand its access to patient data and is expected to enter into agreements with health systems in other European countries as the Company aims to increase its data set to 100 million records by the end of CY2024.

Launch of SENSIGHT

In September 2021, Sensyne launched its SENSIGHT platform to support rapid interrogation of its real-world patient database for use by both clinicians in a healthcare setting and researchers in the life sciences industry, all built with Sensyne's robust Information Governance (IG) and data security architecture. At launch, the platform comprised a total of 750,000 unique anonymised patient health records drawn from a total population of 2.1 million curated patient records covering heart failure, stroke and selected haematological cancers. Currently, SENSIGHT comprises 1.1 million unique anonymised patient records covering nine diseases and was drawn from a total population of 7.3 million curated patient records. By the end of the financial year, the Company expects SENSIGHT to comprise 3 million unique records covering 15 diseases drawn from a total population of over 22.5 million curated patient records held on Sensyne's health system partners' electronic patient record systems.

SENSIGHT was originally conceived and developed as an analytics platform for internal use by Sensyne to scale and industrialise its offering to life science companies. Over the course of its development, SENSIGHT has evolved into a customer-facing platform that has the potential to increase Sensyne's reach significantly and drive future revenue growth through its modest priced subscription fee and providing a gateway to new professional services agreements. The strength of SENSIGHT lies in the breadth and depth of its data which include electronic health records, medical images and genomic data.

SENSIGHT is generating significant interest from potential early adopters within the life sciences industry to support their clinical development and research activities and is converting this interest to subscriptions. As the number of health records and medical indications increases, Sensyne expects the customer base to expand.

Formal Sale Process update

On 2 November 2021, the Company announced the launch of a strategic review and commencement of a Formal Sale Process in which it was also noted that, at that time, neither the Company nor Lord Paul Drayson were in discussions with any potential offeror or in receipt of a possible offer for the Company.  Since then, JP Morgan and Peel Hunt (joint financial advisers to the Company) have contacted a broad range of corporates and financial sponsors to solicit interest in an offer for the Company or strategic investment into the Company. Over the course of December 2021, meetings were held on a non-confidential basis with both corporates and financial sponsors and progress was made on both management buy-out ("MBO") and non-MBO options.  The FSP has now moved to the next phase where a number of parties are having more detailed discussions with the Company under the terms of non-disclosure agreements. The Board reserves the right to alter any aspect of the FSP process or to terminate it at any time and will make further announcements as appropriate. There can be no certainty that any offer will be made for the Company, or as to the terms of any such offer.

Commercial update and revenue outlook

The business development pipeline continues to grow, with an increased number of negotiations ongoing. In October 2021, it was reported there were over 25 opportunities in the pipeline. This figure has now increased to more than 75 and covers: i) over half of the top 10 pharma companies (defined by revenue) plus biotech companies and CROs; ii) all current and former customers; iii) geographically diverse potential customers from the US, Europe and Asia; and iv) drug discovery through to clinical development to post marketing surveillance. The Company has faced some significant commercial headwinds including contract delays as a result of the COVID-19 pandemic continuing to impact pharma companies, changing priorities and increased competition. These factors are slowing the conversion of this strengthened pipeline into commercial agreements. Some competitors claim to offer direct access to patient data, which is counter to Sensyne's ethical model, or access to data that are inferior to the deep, longitudinal data sets that Sensyne has established. Sensyne continues to believe that patient data should never be sold or shared directly with life science companies and that the Company's strategy to be the 'docking station' between health data providers and the pharmaceutical industry is the correct strategy.

On 24 December 2021, the Company entered into two commercial agreements with life science and healthcare customers that had a total value of £0.5 million. These agreements represented the first sizeable subscription sales for SENSIGHT. Whilst the total contract value of professional services agreements that may be signed by the end of the financial year exceeds £29 million, there remains significant uncertainty over the timing of when or if these agreements will be signed.  Currently, the Company believes up to approximately £26 million could be recognised in the current financial year, but this is entirely contingent on customers signing contracts and given the current circumstances, new customers may await for clarification of the Company's financial position prior to confirming such orders and therefore this revenue figure could be very materially lower.

Financial position update

As of 12 January 2022, the Company's unaudited cash position was £2.8 million. The Company has accumulated a substantial debtor and the Company continues to pursue this debtor for monies due under contract. The Company has been seeking funding from a number of different sources and has now signed a non-binding term sheet with a number of its institutional shareholders to provide £6.35 million of capital (with an additional £5 million which may be provided by mutual consent) to finance the Company over the coming months as it proceeds through to the outcome of the ongoing FSP.  Peel Hunt has agreed to apply its fees towards the financing.  The proposed structure of the financing is a loan note (repayable at 1.25 times the loan note value) together with warrant coverage (12.7% of the issued share capital for the first tranche of £6.35 million and 5% of the issued share capital for the second tranche) with an exercise price of the nominal value of 10p.  Shareholder approval is required for the dis-application of pre-emption rights to issue the warrants.  Whilst the Board believes the financing will proceed to completion in the near term, without it the Company is unlikely to be able to continue to trade beyond early February 2022 by which time the FSP will not have concluded. Full details of the proposed financing will be contained in a circular to be published and sent to shareholders and notified via RNS when the definitive legal documentation for the financing has been agreed.

-ENDS-

Notes for editors:

About Sensyne Health: https://www.sensynehealth.com/

Sensyne Health plc (LSE: SENS) is a clinical artificial intelligence company operating a unique business model - a for-profit plc making a positive social impact, sharing the financial returns it makes with health systems.  The company applies clinical AI in the healthcare and life science industries. In healthcare, Sensyne delivers remote patient monitoring and real-time decision-making systems for healthcare organisations and their patients. In life sciences, Sensyne analyses large complex anonymized data sets to help life sciences companies accelerate the development of new medicines.

Sensyne Health is listed on the AIM Market of the London Stock Exchange (SENS.L).

Contact details: