This is a highly significant deal for MYQ as it provides the company with a clear pathway to not only revenue but potentially profitability, based on current burn rate.
Looking at the company’s recent financials, it shows revenue on this deal alone being larger than its previous FY costs.
MyFiziq has developed and patented a proprietary dimensioning technology that enables its users to check, track, and assess their dimension using only a smartphone privately and accurately.
Today, the company signed a Binding Term Sheet with Nexus-Vita, Singapore to integrate MYQ’s CompleteScan technology into the Nexus monitoring platform.
Nexus-Vita has created an application for individuals to track and manage all facets of their medical and health records. It is a proprietary state-of-the-art health management and personal record-keeping system in a single digital environment, where an individual can save their medical and health records in a single, easy-to-access digital platform.
The platform logs data from multiple environments including wearable data from training, nutrition and care programs. The data can be shared with any doctor, healthcare provider, personal trainer or chronic disease management specialist.
Nexus-Vita plans to drastically improve professional data sharing and management for users. This they believe will improve lifetime health, reduce the need for medical interventions, and save cost and resources for the user and health systems, through its partnership with MyFiziq and the use of the CompleteScan platform.
Records are stored and maintained for easy access by individuals and health care providers to facilitate health short- and long-term care. The aim is early identification of health indicators and aggressive pre-emptive care enforcement.
The platform can improve quality of life, reduce medical costs, and reduce interactions with the medical system. Nexus-Vita provides its services to organizations such as health platforms, telehealth providers, chronic disease management organizations, pharmacies, governments, and healthcare providers. Nexus-Vita is currently expanding its offering to hospitals and medical practitioners for implementation in mid-2021.
In the age of COVID-19, the demand for Nexus-Vita is growing especially as medical facilities and personnel are stretched to their limits. Nexus-Vita’s solution is a well-designed platform, with the intention to improve health outcomes, saving individuals and all facets of the healthcare supply chain substantial costs. Whilst helping reduce the burden on global medical facilities and healthcare management organizations.
Complementary aims lead to revenues for MYQ
Nexus Vita’s goals complement MYQ’s aim to help its partners assess, assist, and communicate health outcomes.
Nexus-Vita and MyFiziq will collaborate to integrate the CompleteScan platform into all of Nexus-Vita’s verticals, commencing with an initial integration into Nexus-Vita’s pre-emptive health platform. Under the terms of the binding term sheet, the parties will deliver a market-ready integration into the Nexus-Vita platform by January 2021.
In addition, Nexus-Vita has undertaken to deliver a minimum of 100,000 active users within the first 12 months of launch. This undertaking is also backed by a minimum revenue guarantee of US$3,588,000 per annum, which will be paid to MyFiziq regardless of the minimum user base being achieved. A substantive part of the negotiation with Nexus-Vita was to secure a steep discount to the MyFiziq pricing model. In the negotiation for the said discount MyFiziq obtained a revenue guarantee from Nexus-Vita.
Nexus-Vita is operating primarily in the greater Asia region, where price sensitivity was at the forefront of their delivery to market strategy. To reach the pricing objective requested by Nexus-Vita, MyFiziq secured a minimum revenue guarantee. Resulting in a discount to the MyFiziq pricing schedule, on a per user per month price of USD$5.49 down to USD$2.99 per user per month or a 46% reduction.
Nexus and MYQ have agreed to conclude all formal agreements within 90 days of signing the binding term sheet.
MYQ expects to start generating license and other fees from the commercial arrangement as of January 2021.
The initial term is for 1-year, and will be renewed for consecutive further terms of 2 years each (unless terminated at least 30 days prior to the expiry of the term).
Vlado Bosanac, Chief Executive Officer of MyFiziq, said of the agreement, “This transaction is a turning point in MyFiziq’s pathway to revenue and profit. Nexus-Vita is taking advantage of the global need for digital health engagement, which has seen a significant increase with individuals reluctant to attend medical facilities, and the compounding strain being experienced by the healthcare system worldwide as a result of the current pandemic. Nexus-Vita has identified, developed, and entered the market with a dynamic and well-resourced offering. I am pleased to be working with Jeff and the Nexus-Vita team to provide the CompleteScan platform capabilities to their unique intervention, monitoring and pre-emptive health solution.
“With the COVID-19 pandemic, the world has experienced a surge in mHealth, telehealth, virtual care and preventative health investment. Nexus-Vita’s user monitoring and engagement-based platform are in good company with recent activities in the digital health, telehealth, and medical sectors, which saw Teledoc, acquire Livongo for USD$18.5 billion. Nexus-Vita is targeting both intervention and early identification of addressable disease prior to current preventative healthcare solutions, which is unique and innovative in this much-needed and accepted market segment.”
Jeff Marquass Chief Executive Officer of Nexus-Vita is also buoyed by the deal, “A key differentiator of our platform is we will engage with our consumers to assist them in understanding their chronic disease risk. The greatest failure I have witnessed in all governments and healthcare systems in the last decade, is the inability to identify and engage with their population before an intervention being required. Nexus-Vita will be working with governments, healthcare providers, and insurers to distribute our early warning system for better health outcomes. Billions of dollars are spent each year on mass-marketing by government health organizations around the world, warning people of the risks of poor nutrition, having excess body fat, or simply being sedentary.
“Nexus-Vita health is going to empower individuals through the trusted platforms they already use and engage in. We will identify and alert them to their health risks and CompleteScan is going to be the centre point of our data convergence and empowerment of our healthcare systems: privately, cost-effectively and conveniently.”