Sensyne Health 'unlikely to be able to continue to trade' without financing

Credit: Sensyne Health

British data analytics firm Sensyne Health has revealed it is unlikely to be able to continue trading beyond February 2022 without securing emergency funding.

In November, the Oxford-based firm announced the commencement of a formal sale process (FSP), which led to discussions with corporates and financial sponsors.

An update on trading published on 14 January, says the FSP has moved to the next phase with parties in “detailed discussions” under the terms of non-disclosure agreements. 

In the meantime, Sensyne has signed a non-binding term sheet with several institutional shareholders to provide £6.35 million (with an additional £5 million which may be provided by mutual consent) to finance the company over the coming months.

The update, posted on the London Stock Exchange, says: “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.”

Sensyne stated its unaudited cash position is £2.8 million and it believes around £26 million could potentially be recognised in the current financial year.

It added it is pursuing a “substantial debtor” and had faced “significant commercial headwinds including contract delays as a result of the COVID-19 pandemic continuing to impact pharma companies, changing priorities and increased competition.”

WHY IT MATTERS

Sensyne Health, founded by former UK science minister Lord Paul Drayson has partnerships with NHS trusts and healthcare systems. It has access to detailed information on demographics, diagnosis, treatment, medication, biochemical and genetic tests and procedures, images, pathology, vital signs and genomics data. 

THE LARGER CONTEXT

In December 2021, Sensyne signed a strategic research agreement with Cambridge University Hospitals NHS Foundation Trust to access three million patient records bringing the total of anonymised records in the UK to 12.9 million patients. 

Also last year, Sensyne signed a strategic teaming agreement with OMNY Health allowing it to 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 2021, 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.

ON THE RECORD

In the report Sensyne Health says: “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.”

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