neuroCare Group targeting ASX or NASDAQ First North IPO in 18 months
Chairman Proprietary Intelligence
neuroCare Group is planning an initial public offering (IPO) within 18 months, either on the ASX or NASDAQ First North Growth Market, said founder and executive chairman Thomas Mechtersheimer. The company, a Germany-incorporated developer of personalized digital therapeutics for mental health and performance, plans to raise up to AUD 30m (USD 21m) in the IPO, Mechtersheimer said. The IPO will be used for further global scale, he said.
neuroCare Group is currently undertaking a AUD 10m pre-IPO raise, which is expected to be the last raise before it heads for a board, Mechtersheimer said. It is targeting the end of 2020 for the pre-IPO close.
The company has raised around AUD 25m since its inception in 2015 and in 2019 generated some AUD 15m in revenues and treated around 1500 patients per year, Mechtersheimer said. In the past five years, neuroCare has developed a fully integrated digital therapeutics platform that is used in its own clinics and can be franchised to third-party clinics, according to the chairman.
After the pre-IPO raise, Mechtersheimer and fellow founding investors will remain the largest shareholders, followed by Thuringen Development Bank’s life sciences investment subsidiary, bm-t, which will invest up to 50% of the pre-IPO by doubling any private investor funds, the chairman said.
It is keen to hear from investors or advisors with understanding of the role of personalized medicine in mental health, including high net worth investors or healthcare groups globally, he said. The key current markets for the company are Australia, New Zealand, Europe, the US, and Japan, where it has secured a pharma partner for market entry.
Pre-IPO capital will be used for marketing, further technology development, and to start or acquire more clinics, Mechtersheimer said. neuroCare employs some 100 people in 16 clinics in Australia, the US and Netherlands, with 1000-plus individual therapists also using its solutions. In addition, it has provided training to some 1,000 clinicians and researchers in more than 30 countries.
It is difficult to identify comparable IPOs as neuroCare is currently the only digital therapeutics company in mental health, but recent transactions, notably the USD 8.5bn merger of Teladoc [NYSE:TDOC] and Livongo [NASDAQ:LVGO] in August this year, point to investor appetite for similar platforms, Mechtersheimer said.
It has been widely reported that the growing mental health crisis will be amplified by COVID-19, with a significant increase expected in the already more than 400 million people suffering depression in OECD countries alone prior to the pandemic, Mechtersheimer said.
neuroCare’s solutions can help with this as well as with the many millions afflicted by ADHD and hundreds of millions suffering from sleep issues, he said. Its platform will also be used for other clinical indications like OCD, trauma and addiction as well as for performance and stress management for pro-athletes or high-performing individuals, he explained.
neuroCare’s technology was mostly developed in Germany, with most of the clinical and therapy research and development having been done in the Netherlands and Australia.
Its holistic and personalized approach to improving mental health and performance integrates psychotherapy, neuromodulation, sleep and medication where necessary, with the underlying clinical approach resulting in sustainable outcomes because it is aimed at improving the ability to self-regulate, Mechtersheimer said.
by Louise Weihart in Sydney