Company Announcement no. 8/2024 (October 14, 2024)
ViroGates announces an agreement with US-based suPAR Health to distribute its blood test for chronic inflammation within the United States. ViroGates will release a directed issue of nom. 1,289,510 shares to suPAR Remedy LLC at a total subscription price of approximately 8.2 million DKK.
BIRKERØD, DENMARK - ViroGates A/S, a medical diagnostics company developing blood tests that can predict disease risk by measuring levels of stable chronic inflammation in individuals, today announces an agreement with suPAR Health LLC based in the USA for the distribution of ViroGates' suPAR biomarker for the rapidly growing longevity and population health management market in the US
The intent of this partnership is to facilitate the testing of chronic inflammation in the US population, which is linked to the cause of chronic disease, and chronic disease accounts for the large majority of the costs in the US healthcare system. The parties believe many participants in the US healthcare system can benefit from the information and awareness provided by a precise assessment of the soluble urokinase plasminogen activator receptor (suPAR) protein, which is expressed in major chronic disease conditions. The protein suPAR exists in every human and can be measured precisely through ViroGates assay, clinically validated, and backed by more than 1000 peer-reviewed studies over the past 20 years. By enabling physicians, health clinics, and individuals to obtain laboratory results which reveal their suPAR levels, all stakeholders may be able to provide guided treatment suggestions or lifestyle interventions aimed at lowering the overall level of chronic inflammation - improving healthspan and lifespan.
suPAR levels have proven to be an indicator of all major chronic disease conditions and lifestyle-related diseases such as cardiovascular disease, Type-2 diabetes, kidney disease, neurological conditions, and cancer.
As part of the distribution agreement, suPAR Health has placed an initial binding order, the order size is undisclosed, with ViroGates, which will be delivered over approximately 18 months. This order will allow suPAR Health to set up the product at a few select laboratories in the US.
The parties have also agreed that suPAR Remedy LLC, a separate legal entity set up under the Remedy Ventures 2 investment fund, will acquire 1,289,510 shares in ViroGates A/S. The price has been established based on the volume-weighted average price of the ViroGates share from 18 September 2024 to 2 October 2024, with a premium of 10%. The subscription price per share is DKK 6.34, and the total subscription price is 8,179,224 DKK.
This international distribution agreement and direct investment was facilitated by Aetas Longevity, ApS, of Copenhagen, Denmark.
The agreement will not have implications for ViroGates' financial expectations for 2024, and ViroGates maintains its guidance for 2024 of full-year revenue between DKK 4.5 to 6 million and earnings before tax and interest (EBIT) of approximately DKK -14 to -15.5 million.
Jakob Knudsen, CEO of ViroGates, says: "We are happy to start a collaboration with SuPAR Health to target the US market. Knowledge of an individual's suPAR score is an excellent marker for those interested in a healthier lifestyle. We are also very happy to welcome suPAR Remedy as one of our sizable investors in our cap table. We believe that the combination of a distribution agreement and direct investment is a strong signal that suPAR Health and Remedy are committed to this big opportunity, and we look forward to supporting the efforts in the US with data from our research and development efforts worldwide over the past 20 years."
Matt Wiggins, Managing Partner of SuPAR Health, says: "Unmanaged chronic inflammation in individuals - being labelled 'inflammaging' by some scientists - leads to costs in the US healthcare system, so I believe many cost containment and population health management strategies could eventually include proactive monitoring of suPAR levels. Knowledge is power, and in the future it's possible health insurance companies could offer the test as a benefit to their members, since health plan benefit designs often reimburse for the type of lifestyle interventions and treatments that keep individuals' chronic inflammation under control and lower their suPAR scores. For now, this distribution partnership enables the rapid adoption of suPAR testing among the private pay ecosystem - notably the longevity medicine, functional medicine and whole person medicine communities - where there is the most demand for this type of proven test for chronic inflammation. On a personal note, I am grateful for my interactions with Danish culture that have expanded my awareness and satisfied the inner medical anthropologist - I am excited to share suPAR testing in the US and have a reason to visit Denmark more frequently."
For further information, please contact:
ViroGates A/S:
CEO, Jakob Knudsen
Tel. (+45) 2226 1355, email: jk@virogates.com
Certified Advisor:
Västra Hamnen Corporate Finance
Per Lönn
Tel. (+46) 40 200 250, email: per.lonn@vhcorp.se
About ViroGates
ViroGates A/S is an international medical diagnostics company developing and marketing blood test products under the suPARnostic® brand for better triaging in hospitals to improve patient care, reduce healthcare costs and empower clinical staff.
The company was founded in 2000. Headquartered in Denmark, ViroGates' salesforce covers Spain, France, and Benelux, while distributors serve other markets. ViroGates' shares (VIRO) are listed on Nasdaq First North Growth Market Denmark. For more information, please visit www.virogates.com.
About suPAR and suPARnostic®
suPAR is the biomarker detected by ViroGates' products and is a protein in plasma, measurable in every human being. suPAR is considered a general risk status biomarker indicating disease presence, disease severity and progression, organ damage and mortality risk across disease areas such as cardiovascular diseases, kidney diseases, type 2 diabetes, cancer, etc. Strong scientific evidence from more than 1000 clinical trials and studies show that the higher the level of suPAR, the worse the prognosis for the patient.
The suPARnostic® products can be used to support healthcare professionals in making clinical decisions. The increasing demands on health systems globally and tightening healthcare budgets necessitate efficiency improvements and innovative solutions in hospitals.
About suPAR Health and suPAR Remedy:
Both suPAR Health LLC and suPAR Remedy LLC, are wholly owned subsidiaries of Remedy Ventures 2, LLC, a venture studio and investment vehicle based in Puerto Rico managed by a team of seasoned United States healthcare entrepreneurs.
