Letter from Gatemore Capital Management LLP to Sensyne Health PLC - Seite 2

Importantly, we also commend your commitment to an ethical and transparent business model and careful handling of records and believe the growing number of partnerships with NHS Trusts validates your approach which is setting the standard in the industry.  Sensyne's unique and non-replicable model serves not only as a "moat" around its business but also as a way of achieving numerous positive impacts on global health outcomes. The recently announced agreement with the UK's Department of Health & Social Care to use MagnifEye to read COVID-19 lateral flow diagnostic tests as part of the UK government's asymptomatic testing programme is further evidence of the success of your model, and the trust it has engendered in the UK's healthcare systems.

Sensyne Patient Records and Revenue Growth^[2]

[Figure 1 – Sensyne Patient Records and Revenue Growth]

Photo: https://mma.prnewswire.com/media/1576556/Figure_1.jpg

Current Valuation

However, and despite Sensyne's recent achievements, we believe that the Company remains significantly undervalued.  While Sensyne now has one of the most valuable patient datasets globally, on an enterprise value to patient record basis, the Company trades amongst the cheapest of its peers — not even considering the significant value of Sensyne's app platform and the SENSE clinical algorithm engine business line.

Enterprise Value / Patient Record^[3]

* EY³ benchmarking.

** Note: range represents Sensyne standalone or Sensyne and Phesi records.

[Figure 2 – Enterprise Value vs. Patient Record]

Photo: https://mma.prnewswire.com/media/1576557/Figure_2.jpg

The digital healthcare industry is currently drawing high levels of attention and new capital.  There have been several recent noteworthy consolidations and fund raisings relevant to Sensyne, including the $7 billion merger of Datavant and Ciox Health, intended to create a leading healthcare data ecosystem for anonymised patient-level data.  This is further validation of the tail winds behind Sensyne's industry.  We also note other early-stage healthcare AI companies (such as 23andme, Exscientia, Insilico Medicine, Komodo Health and Tempus) have each recently raised capital at valuations in the $1.5 – $8.8 billion range^[4] (representing 5x – 30x Sensyne's valuation).