MYnd Analytics: Breakthrough Technology for Mental Health Treatment
Citing the unique opportunity to pick up ownership in Emmaus (approximately 5.9%) and the potential upside of MYnd Analytics’ (NASDAQ: MYND) core behavioral health and telemedicine programs, Jason Kolbert, Head of Healthcare Research for investment bank Dawson James, began coverage of MYnd Analytics in April with a buy rating and price target of $4 per share.
Game-Changing Technology for Large Unmet Need
An estimated 350 million people worldwide suffer from depression.
The World Health Organization has predicted that by 2020, depression will be the second-leading cause of disease burden globally, and depression is set to outpace ischemic heart disease as the number one cause of disease burden worldwide by 2030.
In the U.S., one in five adults (43.8 million) experiences mental illness in a given year, while an estimated one in five youth experiences a severe mental disorder at some point during their life.
Serious mental illness costs America approximately $193.2 billion in lost earnings per year, and individuals living with serious mental illness face an increased risk of having chronic medical conditions.
Adults in the U.S. living with serious mental illness die on average 25 years earlier than others, largely due to treatable medical conditions.
Suicide is the tenth leading cause of death in the U.S. and the second leading cause of death for people aged 10-34. Amongst veterans, suicide is even more prevalent, with an estimated 18-22 veterans dying by suicide daily.
Despite these and other alarming statistics surrounding the growing mental health epidemic in the U.S., and globally, treatment today is still largely a trial and error process.
While hundreds of medications exist to treat mental illness, millions of Americans have failed two or more drug therapies, causing skyrocketing medical costs and increased physician and patient frustration.
Improving Access to Care and Reducing Trial and Error Prescribing
An estimated 350 million people worldwide suffer from depression.
The company has developed the Psychiatric EEG Evaluation Registry (PEER) platform to analyze and gather data from over 11,000 patients to provide appropriate medication and therapy.
MYnd Analytics’ patented technology enables healthcare providers to select mental health medications that are more likely to work for each individual patient—simply by matching the right therapies to their specific, individual brain patterns.
These solutions improve healthcare while decreasing costs.
Big Data Technology Delivers Personalized Treatment Options
MYnd Analytics has developed the Psychiatric Electroencephalography Evaluation Registry (PEER) Online® clinical decision support database that uses a combination of software, analytics, and clinical outcomes to provide objective, adjunctive medication response information to physicians treating patients with non-psychotic behavioral disorders.
PEER Online, an FDA breakthrough technology, uses a statistical analysis of EEG outputs and other patient information to generate a report that indicates the statistical likelihood of the patient's responsiveness to classes of central nervous system (CNS) medications (i.e. antidepressants), groups (i.e. SSRI) and individual agents (i.e. fluoxetine).
Procedurally, PEER Online utilizes standard EEG equipment to measure patients in a resting (but awake) state. The non-invasive recording generally takes 30-60 minutes.
Patients are then classified based upon the 1,142 variables calculated in the recording (FDA-approved neurometric system) and categorized based on the outcome history in treating patients with similar neurophysiologic outputs.
From these outputs and the correlation to the outcome database, reports may indicate single or multiple medications based on the nature of the physiologic abnormality discovered.
The entire procedure is rapid, non-invasive, devoid of radiation or high strength magnetic fields, and results in a report, the PEER Outcome Report that is provided to clinicians in a format similar to antibiotic sensitivity testing.
This straightforward report, combined with the company’s telepsychiatry network spanning all 50 states, provides better and faster access to mental health services and effective treatment options.
Driving Improved Access Through Telemedicine
According to Piper Jaffray, the telemedicine industry overcame regulatory barriers in recent years by becoming a legal form of healthcare in all 50 states.
Since then, the likelihood of someone choosing telemedicine has doubled year-over-year to 61% currently, and half of consumers suggest they would consider a virtual behavioral therapist.
Even the 65 and older population is warming up to telemedicine, indicating the trend is going mainstream.
Goldman Sachs estimates potential savings of $100 billion in the U.S. through telehealth services.
In 2018, MYnd Analytics acquired Arcadian Telepsychiatry to capitalize on these trends.
Arcadian specializes in the technology-enabled delivery of behavioral health services through a network of social workers, therapists, and psychiatrists throughout the U.S.
Its suite of services includes telepsychiatry, teletherapy, digital patient screening, curbside consultation, on-demand services, and scheduled services.
Arcadian has the ability to serve consumers in all 50 states through its network of licensed clinicians, offering services for all age groups and the flexibility to schedule appointments seven days a week at locations best suited for each individual patient.
Arcadian’s customer base includes government and non-profit agencies, hospital networks, private insurers (including managed care organizations), as well as physicians and patients.
Five-Year Government Contract to Deliver Healthcare IT Services
MYnd Analytics received a five-year contract under the General Services Administration's Federal Supply Schedule vehicle to provide the Department of Veterans Affairs and the Department of Defense with healthcare information technology services.
The contract, announced in February, has an option to extend for 15 years and will focus on the implementation of the company’s breakthrough PEER Online tool.
"This contract adds MYnd’s data analysis services to the range of treatment support tools for clinicians in the federal health care system," said Patrick Herguth, CEO of MYnd Analytics.
Previously, MYnd Analytics conducted a trial of PEER Online at Walter Reed Medical Center. Doctors who followed PEER Report recommendations showed statistically significant patient improvements, including:
- Depression scores improved by 144%
- PTSD scores improved by 139%
- Suicidal ideation was reduced by 75%
This trial was the fourth such trial conducted, all of which have demonstrated the efficacy of PEER technology in improving patient outcomes.
Increasing Provider Network Adoption
Government mandates enacted over the past decade have helped drive reimbursement for solutions that improve outcomes and reduce costs.
MYnd Analytics is capitalizing on these trends through its growing network of providers.
In March, the company announced a deal with Megellan Healthcare to provide telepsychiatry, teletherapy, and teleEAP services to its members through Arcadian's provider network.
Magellan Health is a Fortune 500 company whose customers include health plans and other managed care organizations, employers, labor unions, various military and governmental agencies and third-party administrators.
Commenting on the agreement, Eric Schmitz, senior vice president of network development at Magellan Healthcare, stated, "We are pleased to welcome Arcadian Telepsychiatry Services to our provider network as a 'virtual group practice' to expand availability and flexibility to our members seeking care."
MYnd Analytics also has a paid pilot program underway with Horizon Health Services in New Jersey.
With an estimated patient population of 600,000, just capturing 10% of the market could generate $48 million in revenue (at $800 per test).
Emmaus Life Sciences Merger and Spin Off
In January, MYnd Analytics announced a merger with Emmaus Life Sciences in a stock-for-stock deal that will ultimately results in a spinoff of MYnd’s assets.
For investors, this means those buying and holding shares ahead of the merger record date (transaction is looking to close sometime this summer) will have the opportunity to participate in the upside of two exciting opportunities.
Emmaus is the maker of the FDA-approved sickle cell disease treatment Endari.
Sickle cell disease is an inherited blood disorder that causes red blood cells to become rigid and change form so that they appear sickle-shaped instead of soft and rounded.
Emmaus' Endari, which was approved in the U.S. in 2017 and launched in early 2018, is intended to reduce the acute complications of the disease in adult and pediatric patients five years of age and older.
After the expected spin-off, MYnd Analytics' shareholders will continue to own 100% of the predictive analytics and telemedicine business.
To learn more about MYnd Analytics and its potentially significant upside, watch our exclusive investor webinar with CEO Patrick Herguth and Chairman Robin Smith.