Induct (INDCT) Investor Update summary

Strategic focus and financial update

• Annual cost reductions of NOK 15 million achieved through cost initiatives and portfolio review.

• Focus shifted to core healthcare solutions and Tilskuddsbetaling/Tilskuddsportalen, discontinuing less profitable products.

• Forecasting operationally cash-positive results of NOK 6–8 million in 2025, excluding potential from new collaborations and NHS scale-up revenues.

• Interest-bearing debt stands at just over NOK 14 million, with NOK 8 million as short-term debt.

• All revenues from the NHS initiative will directly increase operational cash results.

Collaboration and market potential

• Collaboration with AstraZeneca and Portsmouth Hospitals aims to scale the asthma care pathway across NHS England, targeting 8 million asthma patients in 930 hospitals.

• Estimated annual recurring revenue from the asthma pathway in England is NOK 70–80 million, with a 95% gross margin.

• Global market for biologics is valued at $6.5 billion, growing at 12.5% annually, with expansion targeting 262 million asthma patients in 200,000 hospitals.

• Key market drivers include rising asthma prevalence, increased R&D in biologics, and greater treatment awareness.

• Cloud-based solution enables high scalability and margin, supporting global expansion.

Implementation and clinical impact

• Asthma care pathway live at Portsmouth since December 2023, managing real patient data daily.

• Implementation led to cost reduction, quality improvement, enhanced patient safety, and saved two full-time administrative positions.

• Digital pathway standardizes care, improves access to biologic medication, and supports multidisciplinary reviews.

• Centralized and standardized patient data improved care quality and increased the number of patients reviewed and treated.

• Employee satisfaction rose due to reduced administrative burden and higher productivity.