MyFiziq Limited (ASX:MYQ) has signed a binding term sheet with Jayex Healthcare Limited (ASX:JHL), a UK based health communication monitoring and management technology company.
The Jayex brand is synonymous with patient management systems for general practitioners (GPs) in the UK where the company has been operating for 40 years.
Similar to MyFiziq, Jayex’s shares have been on a tear lately, having increased nearly 80% in the last fortnight with the share price surge supported by the largest trading volumes in more than two years.
Jayex Connect, a platform owned by Jayex, has evolved to become the first all-in-one patient engagement platform, improving the patient experience and the efficiency and productivity of GP practices and hospitals.
The group’s comprehensive suite of communication tools include digital display systems, online appointment booking, SMS and email campaign management, patient self-check-in and mobile check-in, surveys and patient calling.
Jayex, has confirmed its customer base spans 3,250 locations in the UK, Australia and New Zealand, with over 50 million patient interactions per year.
Jayex is entering a new phase of growth following its transition to a SaaS model, and management is adding innovations and functionality to its platform to enhance the value it delivers to GPs and healthcare providers, while increasing market share and revenue per user.
Under the agreement, Jayex intends to integrate the MyFiziq CompleteScan capabilities into its Jayex Connect platform and add new capabilities that allow for remote patient assessment using the CompleteScan platform to assess patient and consumer needs.
Aligns with UK NHS mandate
The partnership is a move into deeper telehealth initiatives being driven by the UK government funded National Health Service (NHS), which recently stated “all patients will have the right to digital consultation by April 2021”.
Under the terms of the binding sheet, Jayex is targeting a minimum of 1,000,000 active users within the first 12 months, but there is no guarantee this number will be achieved.
The parties have agreed to conclude all formal agreements within 120 days of signing the binding term sheet.
MyFiziq does not expect any immediate material financial return as a result of entering into this agreement, but management anticipates the generation of licence and other fees from the commercial arrangement in the future.
The agreement is for a one-year period, and this term shall be renewed for consecutive further terms of 2 years each unless terminated at least 30 days prior to expiry of the term.
Scalability drives down cost per user
There are strong incentives for Jayex to maximise the quantum of active users as the CompleteScan pricing decreases from US$5.49 per month per user for up to 50,000 active users to US$1.80 per month per user for more than 1.5 million users.
MyFiziq chief executive Vlado Bosanac underlined Jayex’s high profile management and well-credentialled brand in saying, “Jayex will be a great partner for MyFiziq.
‘’I have a long history of working with Michael Boyd, who was one of the founding directors’ of Sonic Healthcare (ASX: SHL), a great Australian success story.
‘’Jayex is a highly trusted healthcare brand, and this mutually beneficial partnership gives us access to over 3,250 medical facilities and a platform that boasts impressive 50 million-plus patient engagements per annum.
‘’It creates an opportunity to empower consumers and GPs to add a new dimension to their interactions, and ultimately improve the interaction and patient care.
‘’While we have allowed 120 days to complete the contractual arrangements, both companies are keen to expedite the development and work towards an integrated product release on the Jayex platform.”