Australian company Adherium (ASX:ADR), which is focused on respiratory eHealth, remote monitoring and data management solutions, has secured subscription commitments totalling $18 million.
The placement includes cornerstone investments of $5 million each from existing shareholders Trudell Medical and BioScience Managers Translation Fund 1 (BMTF1). In addition, Viburnum Funds has agreed to terms under which its Secured Convertible Notes will convert into ordinary shares in conjunction with the completion of the $18 million placement.
MST Financial was the sole Lead Manager for the placement.
Adherium said the new funding supports its new target of completing commercial evaluations in North America with its existing partners HGE Health and Monaghan Medical (part of the Trudell group) in 2021, the completion and further development of its digital respiratory device portfolio and the establishment of a series of new commercial partnering agreements.
Adherium said its goal is to take a leadership position in the digital management of respiratory disease through the extension of its technology offering beyond adherence and establish a complementary multi-sensor digital respiratory management ecosystem.
It said these additional digital devices will provide supplementary data on the underlying disease status.
This digital respiratory management ecosystem will broaden Adherium’s clinical offering providing a more complete data set to physicians, payers and providers and securing additional recurring revenue streams.
Adherium said it is uniquely placed to benefit from the rapidly developing telehealth trends and positive reimbursement environment in the US. It said a significant emerging opportunity involves the diagnosis, assessment and management of the chronic respiratory impact of post-COVID-19 syndrome, or 'long COVID', relevant for remote digital sensor management.
“This is an exciting time for Adherium with a clear pathway to revenue generation,” said Mike Motion, CEO of Adherium.
“Over the last 12 months we have refocused the strategy on patients where adherence matters most, progressed, and upgraded our next generation adherence sensors with physiological measurement, identified a complementary suite of respiratory digital devices, established key commercial pilot programs in the US and are engaged with multiple new potential partners in the US, Europe and Australia. The funds being raised will allow the business to move beyond proof of principle toward the transformational outcome planned for the Company.”