Dr. Alexander Dobranowski reports

HEALWELL AI PROVIDES CORPORATE UPDATE HIGHLIGHTING ITS GROWTH AND VALUE CREATION STRATEGY AND RECENT COMMERCIAL SUCCESSES

Healwell AI Inc. has provided a corporate update highlighting updates on the company's recent commercial successes and acquisition strategy.

Dr. Alexander Dobranowski, chief executive officer of Healwell, commented: "We live in a world where we know that health care costs are on the rise and burdening the economies of most industrialized and modern medical systems globally in an unsustainable manner. This has ushered in a new era of focus on value-based-care-related trends that are designed to drive down costs, improve efficiency, alleviate provider burnout and improve patient outcomes. One of the most powerful tools being enlisted by health systems globally is to add data-driven clinical decision support systems to EHR platforms to better support providers. The prevalence of AI in health care is now poised to firmly disrupt clinical decision support systems."

Dr. Dobranowski adds: "At Healwell, we've acquired a competitive suite of AI technology not only in Canada but globally, and we are poised to not only drive the proliferation of this technology to clinical decision support systems, but we also intend on vertically integrating our AI technologies to create far superior clinical decision support capabilities that will support value-based care trends."

Active capital allocation program supported by a strong balance sheet

In a short time since the company's recapitalization event on Oct. 1, 2023, that was led by strategic partner Well Health Technologies Corp., Healwell has raised approximately $29.5-million, completed the majority stake acquisition of Pentavere Research Group, which, to its knowledge and research, is one of the foremost health care AI data science companies in Canada, and completed a minority investment and strategic alliance in a rapidly growing German-based EMR (electronic medical record) company, doctorly.

Healwell's acquisition pipeline is robust and expanding daily. The company has looked at over 100 potential acquisition opportunities. Heading further into 2024, Healwell is in conversations with multiple parties and is working to identify additional investments and acquisition opportunities in the near future. Part of its merger and acquisition philosophy is to target companies that have mature revenue, strong positive EBITDA (earnings before interest, taxes, depreciation and amortization) and a compelling growth opportunity going forward.

An important part of Healwell's forward growth and value creation strategy involves acquiring, investing in and/or partnering with data-focused companies such as EMR, EHR (electronic health record), patient flow and/or other similar businesses and integrating its best-in-class artificial intelligence capabilities that will provide next-generation AI-powered clinical decision support capabilities that will provide patients and providers with powerful tools to drive better health outcomes at lower costs in a manner aligned with global value-based care (VBC) trends.

Digital software offerings combined with AI technologies are expected to drive transformational change in health care. In other words, software (such as EMRs) combined with AI are the future of health care. Healwell plans to add its disruptive AI capabilities in order to drive next-generation benefits for physicians, clinics, hospitals and the pharmaceutical industry. This will further ease burdens on health care providers and systems, while dramatically improving the time to intervention as a result of using Healwell's tools and technology.

Accelerating commercial success

Another key growth strategy for Healwell is to grow its operating businesses that work closely with the life sciences and pharmaceutical industries. Companies that advance scientific research initiatives with and on behalf of pharmaceutical companies benefit from the integration and leveraging of Healwell's AI systems.

Including both the Khure Health and Pentavere divisions, as of Dec. 31, 2023, Healwell had 17 services agreements in its development pipeline with pharma companies. In addition, the company has services agreements with seven hospitals and provincial health authorities in Canada, and three service agreements with United States-based health care systems. The combination of Khure and Pentavere has expanded the company's pipeline of existing pharma relationships. Moreover, in 2024, the company expects to launch new AI commercial initiatives in a number of additional specializations, including dermatology, ophthalmology, migraine, diabetes, oncology (breast, lung, prostate), heart failure and vascular disease.

Khure has made progress reaccelerating its Clinical Decision Support (CDS) commercial road map with life sciences and pharmaceutical companies. This has resulted in new commercial activity, repeat/extended projects, and the addition of new pharmaceutical customers amongst the largest global pharmaceutical and life science companies. Part of this success has been attributed to the adoption of the Khure technology within the Well ecosystem as Well AI Decision Support. This has now provided Khure with access to thousands of Well providers as per the strategic alliance agreement executed on Oct. 1, 2023. Khure has also expanded its core capability by developing and validating additional algorithms in a wider disease purview that now also includes chronic conditions in addition to rare and ultrarare diseases. Previous pharmaceutical and life sciences customers are repeating or extending business with Khure; a positive indicator that re-enforces Healwell's confidence in the outlook for 2024.

Pentavere is also excited to announce it has launched an innovative and first-of-its-kind, real-world evidence (RWE) insight and quality improvement product for dermatologists and life sciences companies to better support unmet patient needs in the community. This product is called Dermaid, and it harnesses Pentavere's Darwen artificial intelligence platform to extract valuable and actionable clinical insights that support dermatology patient care pathway decisions. Dermaid has already established its market presence with relevant commercial activity with a top five pharmaceutical company.

The global market for clinical decision support systems was estimated to be worth $4.9-billion (U.S.) in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 10.6 per cent from 2023 to 2030. The growing demand for quality care and alignment with value-based care trends coupled with advancements in data science and artificial intelligence will drive significant growth in the market for viable clinical decision support systems.

About Healwell AI Inc.

Healwell AI is a health care technology company focused on AI and data science for preventive care. Its mission is to improve health care and save lives through early identification and detection of disease. As a physician-led organization with a proven management team of experienced executives, Healwell AI is executing a strategy centred around developing and acquiring technology and clinical sciences capabilities that complement the company's road map.

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