HEALWELL to attain majority ownership of Pentavere
November 22, 2023
TORONTO – HEALWELL AI Inc., a data science and AI company focused on preventative care, announced it plans to acquire a majority ownership position in Pentavere Research Group Inc., an innovative AI health-tech company focused on identifying eligible patients for approved medications and interventions.
Pentavere has a proven track record in commercialization of real-world evidence studies and has developed strong partnerships with major hospital networks. Pentavere’s expertise in data abstraction and structuring, combined with their extensive network and experience in hospital specialist care, aligns with HEALWELL’s commitment to improving preventative care.
HEALWELL’s proposed majority acquisition of Pentavere will further solidify its standing as a world-class AI technology provider. This proposed acquisition will add top-line revenue, new products, partnerships with major hospital networks in Canada and the United States, access to five new key pharma customers and also an expert AI engineering team.
The combined capabilities of HEALWELL and Pentavere in combination with the company’s partnership with WELL Health Technologies Corp. allows HEALWELL to accelerate its strategic roadmap and tackle high value problems in the healthcare industry.
Dr. Alexander Dobranowski (pictured), CEO of HEALWELL commented, “We are thrilled at the prospect of welcoming Pentavere, a real AI powerhouse, to the HEALWELL family. This proposed acquisition will represent a major leap forward in our mission to revolutionize healthcare through the use of AI and data science.”
He added, “Pentavere is most certainly one of the leading technology assets in Healthcare AI in Canada. Its advanced DARWEN platform leverages artificial intelligence and large language models to process complex, unstructured clinical data into easily searchable and referenceable structured data, addressing a critical need in modern healthcare technology.”
Mr. Aaron Leibtag, co-founder and CEO of Pentavere, stated, “Pentavere has always been driven by a dedication to improving patient outcomes through technology. Joining forces with HEALWELL will allow us to amplify our impact and reach even greater heights in the field of healthcare technology. We are excited to combine our strengths and bring forth innovative solutions that will shape the future of healthcare and drive better outcomes for patients.”
Pentavere’s extensive experience working with some of the world’s largest pharmaceutical companies underscores its reputation in the commercial sector.
Over the past several years, Pentavere has published an impressive array of literature in high-impact, peer-reviewed medical journals. This body of work, totalling more than 19 manuscripts, serves as a testament to Pentavere’s capabilities and adds significant credibility to their technology, particularly in the eyes of healthcare experts, key opinion leaders and clinical researchers.
The addition of Pentavere’s data abstraction and structuring capabilities, combined with access to hospitals and expertise in hospital based medical specialities, will broaden HEALWELL’s therapeutic and disease indication spectrum.
Moreover, the expanded portfolio is expected to broaden HEALWELL’s capabilities to unlock the value of its partnership with WELL with whom it has recently executed an agreement to deliver clinical decision support capabilities to WELL’s healthcare providers.
No industry in the world produces more data than healthcare. By the year 2025, the compound annual growth rate of data for healthcare will reach 36%, according to research cited by HEALWELL. Much of this data is generated in unstructured form and will require technologies such as Pentavere’s so that it can be used to solve the most challenging problems in the healthcare industry.
HEALWELL AI is acquiring a majority ownership of Pentavere on a non-diluted basis in a combined primary and secondary transaction with an option to buy the remaining stake over the next 3 years.
The purchase values 100% of Pentavere at an enterprise value of $15 million which includes approximately $2 million in debt. HEALWELL is buying an initial stake from existing shareholders with a combination of cash ($1.75 million) and AIDX stock ($4.16 million).
A further $1.2 million will be invested by HEALWELL on closing to purchase newly issued treasury shares that increase HEALWELL’s ownership to a majority position on a non-diluted basis, and provide Pentavere with fresh operating capital. On closing, HEALWELL has the right to appoint nominees for a majority of Pentavere’s board seats.
About HEALWELL AI
HEALWELL AI is a healthcare technology company focused on AI and data science for preventive care. Its mission is to improve healthcare 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 centered around developing and acquiring technology and clinical sciences capabilities that complement the Company’s road map. HEALWELL is publicly traded on the Toronto Stock Exchange under the symbol AIDX. To learn more about HEALWELL AI, please visit https://healwell.ai/
Pentavere Research Group is a globally recognized and award-winning AI digital health company that has built a best-in-class AI engine to identify patients that are eligible for approved medications or interventions, to improve outcomes for patients and help drive therapy growth and penetration. Pentavere’s AI system, DARWEN, identifies patients that are eligible for but not receiving approved medications or interventions, improving outcomes for patients and helping drive appropriate therapy growth and penetration.