The MyFiziq Ltd (ASX: MYQ) share price has been on the move today following the release of a new binding term sheet. During intra-day trade, the MyFiziq share price reached a record high of $1.50 before falling down to $1.25. At the time of writing, the MyFiziq share price has settled at $1.34, up 1.5%.
Let's take a look to what MyFiziq announced today.
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New agreement
MyFiziq advised it has signed a significant binding term sheet with Nexus Vita Pte Ltd, a Singapore-based health monitoring and management tech company.
In detail, Nexus has developed a system that bridges medical health and wellness management of an individual. The application tracks and manages medical and health records onto an easy-to-access digital platform, which can be shared with a medical professional. Nexus-Vita's aim is to improve lifetime health and reduce the need for medical procedures, saving costs and resources to user and government health systems.
Under the agreement, both companies will add MyFiziq's CompleteScan platform into all of Nexus-Vita's products. The partnership will begin with the integrated rollout of Nexus-Vita's pre-emptive health app. It is expected to be available to market by January 2021.
The conditions stipulate Nexus-Vita will deliver a minimum of 100,000 active users to the platform within the first 12 months of launch. This will be backed by a minimum revenue guarantee of US$3,588,00 per annum paid to MyFiziq.
As Nexus-Vita operates mostly in the greater Asia region, price sensitivity was a key driver to achieving its marketing strategy. As a result, Nexus-Vita will lower the per user month price of US$5.49 to US$2.99, reflecting a 46% discount.
What did management say?
MyFiziq CEO Vlado Bosanac said the transaction was a turning point in MyFiziq's pathway to revenue and profit. He said:
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."
Mr Bosanac mentioned the identifiable market opportunities that had arisen due to COVID-19, adding:
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 is 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.
MyFiziq share price performance
The positive announcement is good news for investors and will likely further fuel the meteoric MyFiziq share price rise. Since the start of the year, the MyFiziq share price has jumped more than 400% to reach its all-time high of $1.49 today. A market capitalisation of $155 million, the company has a huge runway ahead should it exceed market expectations.
