Interview With Chairman of Board Robin Smith
Question: Now MYnd Analytics has combined telemedicine and artificial intelligence, to deliver personalized behavioral health treatment plans. Give us an overview of your technology.
Answer: So we do two things, we improve access to care, and we have tools for physicians, to help determine, what medication might be effective in the person in the behavioral health area, so its using artificial intelligence to determine based on EEG waves, the patterns of many, many, thousands of thousands of patients, to determine what medication will work in that persons brain.
Question: As I understand it, there's been over 40 studies, conducted on your technology from a lot of Ivy league schools. So give us a little history.
Answer: Yeah so, I look at this very similar to what we all know in cancer. Not all breast cancers are alike, there are markers the BRCA Gene. You know in cancer, so we have to look for ways to determine the sub-types of a disease. So that we can better determine how to treat a patient, and now what we've learned with many independent studies of KOL's, the embark trail, which was the recent NIH funded trial. Is that EEG is a good predictive marker of diseases in behavioral health like depression, and that by using the patterns, we each have different EEG patterns, and by using those patterns, and following people out with their outcomes to different medications, we can determine, how your brain will respond, to a particular medication. And that helps give a tool to physicians when they go to treat you, to understand better what classes may work for your brain, based on those patterns, and specifically what drugs in those classes.
Question: Robin what's the essential value proposition for investors today? And you can talk about the recent, merger you announced with Emmaus Life Sciences, as you answer the question.
Answer: You know there's a couple of trends now that are very important I think in medicine, one is moving toward value based medicine, how do you improve access to care, improve quality, and lower cost. And behavioral health, is an area, that is a very large focus. Because about 25 percent of people in their lifetime, will have a behavioral health condition. You know there are many, many out there. So how do you help individuals get access to care, and we do that through telemedicine. And then how do we give tools to the primary care physicians, the doctors who are really front line before they even get to a psychiatrist, to help them have tools, to determine, objectively, what the right medications will be, so really we us A.I. we have telemedicine, which is a growing space now, to improve access to care. And its a time where we're able to look to maximize shareholder value, through a recent acquisition we announced. We signed a definitive agreement to bring up commercial company with a biotechnology company in sickle cell disease, where they just started to commercialize, their product. And in this merger transaction and then the spin of the MYnd Business and the Arcadian telemedicine business, our investors will be able to have, what I call two bites of the apple. Ownership in the new company Emmaus, as well as they'll hold all the ownership in the Mynd and Arcadian business.
Question: And so the acquisition is a company that has a drug approved for sickle cell anemia as I understand it, and if you look at some of the comps in that space, you're seeing billion dollar plus market caps, so they would keep six percent of that company, that you acquired while also owning MYnd Analytics, correct?
Answer: You know yes, so you would 5.9 percent of the merge companies, for shareholders, and of course I can't give guidance, but you're right, it’s a company that has first mover advantage. It was one of the first approved drugs for sickle cell in a very long time. And it’s an area focus now where people are looking for ways to prevent those sickle cells crises. And people coming into the ER and coming back to the doctor. So the therapy that they have is exciting. They started to commercialize, and now how do they expand? And what's important to realize is, while there's only 100,000 cases in the United States, there's over 20 million people world wide that have sickle cell. So the opportunity isn't just in the United States but globally and hopefully once we have the merger, we'll continue to see progress in their expansion throughout the world.
Question: Apart from the again the acquisition of Emmaus Life Sciences, let's go back to the telemedicine, and the behavioral health technology, how big is the market opportunity?
Answer: In general, its tremendous. I mean if you think about the fact that 25% of people will have a behavioral health issue. You can see that's a very large part of the population just in the United States alone, we're constantly seeing people, saying this is an underserved population, I believe just yesterday, we saw an executive order from Trump. Looking at veteran suicide, to work together, to use technology, to reduce the suicides that occur over twenty a day. Looking just at ER visits 10 percent of those visits, are people coming to the emergency room, for behavioral health issues, not necessarily from the treatment perspective, but the access. There's no where they can go, to get help. So they go to the emergency room. So billions and billions of dollars is being spent, in mental health diseases and having more effective tools, to improve that access to care. To reduce the trail and error prescribing, should have a dramatic impact, not just on quality, but on overall cost.
Question: And again to clarify, so by giving the patient an EEG your technology, can determine which drug, would best suite that person, to treat their particular mental health problem, is that correct?
Answer: Yeah you know, 17 million people in the United States, have been on two medications, and are what's called refractory. They're just not responding well to care. So it really is trial and error prescribing. And very often, that makes people not come back to the physician, or under that treatment. They start self medicating, with alcohol, drug abuse, and it really is an area, where we're just not serving properly, or having the solution for the disease, in a way that you know trail and error, prescribing just isn't working.
Question: Robin you have a program with the U.S. government, I'd like you to talk about that program, you also have a pilot program, with Horizon in New Jersey. Can you comment on those two programs?
Answer: So you know with government unless you're a provider, inside say, a VA. The way it works is, you have to apply to be in the GSA. So what they do is, they negotiate Contracts with vendors. And now that there are these tools, in technology that are more I.T. related, you know we've been able to work on getting a contract, so its a negotiated rate, a five year contract. Which can be renewed with the government, so that anyone in mental health in the government area, that's looking for technologies and services, can go to their GSA and take and utilize those services, on the negotiated rate, so now we have to take that information, and let people know that we're on the GSA that its out there. And you know look for ways to drive, revenues, and get patients, into that contract. So we're pretty excited about that, and that's very recent. And then over a year ago, we started a pilot program, a paid pilot program, with Horizon of New Jersey, and Hackensack Meridian, and where we're working to utilize the tool the peer report, with physicians, so half of the physicians will get the peer report, and look at that tool, to help determine, what the right medication is for the patient. Half won't, and then we'll look at the differences in outcomes, not just from quality, but also costs, because through the Pharmaeconomics studies that have been done, there's a 4.7 times savings for physicians, if they utilize that tool. That's what this analysis, that was done in Stanford showed. So, now we want to show more in real life, how this will occur in today's health care systems. So we're really excited about that, and what's important there is there's about 2.8 or 2.7 Million lives under the horizon umbrella. And so, 16% of those individuals, will be on those kinds of medication for depression, anxiety, you know manic mania, eating disorders, etc. So that's the pool, and the question is if this becomes a standard of care, what would that look like? So of the 2.7 or close to 3 Million population that's 600,000 people just in New Jersey. That's the population that we have, that we can really focus on, and help use our tools to improve the care both in access and in quality and make sure they are on a medication that's most efficient and works best for them. So you can see that really plays out we charge about 800 for the test in its entirety, including the EEG and the report. So that can grow very quickly, when you go from a pilot, to become standard of care. So that would be our hope for the future. And we will continue to work with other payers, to show them how this can be a benefit to their population of members that they insure.
Question: Robin, to recap what's the main takeaway for investors today, why should they own your stock today?
Answer: I think the main takeaway, is we have great technology good intellectual property, and both we now have telemedicine, as well as this tool to reduce trial and error prescribing. And we're really a behavioral health company with tools, that can have an impact to care. We have additional leadership that we brought on, who's a gentleman who's been focused on building businesses understands you know how innovation and tools can impact care. Growing networks, and we're excited for him to bring these to businesses together really drive the growth of the business. And also because we're able in this transaction, to put that together now is the time, where, if you're a shareholder, and you hold that stock until we close the transaction, which we're on track for by, you know to complete by the end of the first half of this year. You will get a piece of Emmaus, as well as MYnd Analytics. So, its an opportunity to get two bites of the apple, and two business, both with commercial products, and that are generating revenues. So you know often, with drug development, there's always a risk there, but we're past that risk and that this is a revenue generating company and same with MYnd Analaytics the clinical trials have been done, they're getting reimbursement, and now its just about scale, and you know taking the opportunities out there, and being successful.