Fundraising to raise up to £27.5 million, Industrialisation and Scaling of the Sensyne Data Platform and Strategic Collaboration with Phesi, Inc.

Fundraising to raise up to £27.5 million, Industrialisation and Scaling of the Sensyne Data Platform and Strategic Collaboration with Phesi, Inc.

Oxford, UK – 9 December 2020: Sensyne Health plc (LSE: SENS), the UK clinical AI company, announces a proposed fundraising by way of a placing (the "Placing") and a direct subscription by Directors and certain members of senior management (the “Subscription”) to raise up to £25 million (before expenses) at a price per share of 90 pence (the "Placing Price"). 

The Company also announces it has entered into an agreement for an exclusive strategic collaboration with Phesi, Inc. (“Phesi”) a US-based specialist clinical trials data company. The collaboration will provide Sensyne with the benefit of c.13.5 million international patient records from c.320,000 clinical trials and the ability to market an enhanced offering to the pharmaceutical and biotechnology industry. Further details of the collaboration are set out below in Appendix I to this Announcement.

In addition, in order to provide Qualifying Shareholders who do not take part in the Placing with an opportunity to participate in the proposed issue of new ordinary shares of 10 pence each in the capital of the Company (the “Ordinary Shares”), the Company also announces a proposed open offer to raise up to a further £2.5 million (before expenses) (the “Open Offer” and, together with the Placing and the Subscription, the "Transaction", and the new Ordinary Shares proposed to be issued pursuant to the Transaction being the "New Shares").

The Placing, which is being conducted by way of an accelerated bookbuild (the "Bookbuild"), will be launched immediately following release of this Announcement. Peel Hunt LLP ("Peel Hunt") and Liberum Capital Limited (“Liberum,” and together with Peel Hunt, the “Banks” or the “Joint Bookrunners”) are acting as joint bookrunners in respect of the Placing.

The Placing is subject to the terms and conditions set out in Appendix II to this Announcement.

Reasons for the Transaction

Sensyne is at the heart of a fundamental shift in the healthcare and life sciences sectors towards greater use of big data analytics and clinical AI, which has been accelerated by the COVID-19 pandemic.  The Company has made substantial progress since IPO in 2018: growing its real world patient database, which now has access to 6.1 million unique patients representing approximately 10% of the UK population; and signing agreements with major pharmaceutical and biotechnology companies including Bayer, Roche, Alexion and Bristol Myers Squibb.

The Transaction will enable the Company to capitalise on the expanding number and range of commercial opportunities, deliver economies of scale and accelerate future revenue growth.  This will be achieved through the growth and ‘industrialisation’ of the Company’s data platform leading to significantly enhanced scale and speed of delivery of clinical AI insights for customers and the addition of an enhanced offering to pharmaceutical clients through the Phesi collaboration. Currently, responding to questions about available categories of Sensyne’s data can take several weeks with clinical AI answers taking months to produce. Investments into industrialising this process are expected to dramatically reduce these timescales to seconds and weeks.

The proceeds from the Transaction will be applied to the following:

• Industrialise and scale the Sensyne data analytics capability by increasing access to anonymised patients datasets to c.17.5 million and build SENSIGHT™, a pharmaceutical R&D platform to analyse data more rapidly and cost effectively to enhance revenue growth.
• Enter into exclusive strategic collaboration with Phesi, including an equity investment in Phesi, to create an enhanced offering to pharmaceutical clients.
• Further develop the Company’s SENSE™ clinical algorithm engine to provide an expanded offering for global healthcare providers and payers, comprising a range of proprietary AI algorithms for clinical decision support and operational management in hospitals.
• Strengthen the Company’s balance sheet for partnering discussions with pharmaceutical and biotechnology companies and general corporate purposes.