PainChek, the developer of the world’s first smartphone-based pain assessment and monitoring application, announced the achievement of a key milestone in its landmark trial funded by the Australian Government.
The company recently announced a key milestone of 127,000 licensed Australian Residential Aged Care approved beds across more than 1600 Aged Care Facilities reflecting 60% of the Australian market. On Monday, PainChek confirmed this includes 82,982 dementia-specific beds, funded as part of a Federal Government grant to accelerate the use of its pain assessment technology in aged care.
These dementia-specific bed numbers are projected to result in a $1.25 million milestone payment to PainChek, receivable in June 2021 and recognised as Government-funded revenue in FY22. The amount represents the full payment of the third tranche of the grant and a partial payment of the fourth tranche.
With the total number of beds now under PainChek license, the company is projected to generate $5.5 million in normalised Annual Recurring Revenue (ARR) post the government-funded 12-month period. Normalised ARR is post completion of the government grant reflecting contracted or standard pricing on completion of the trial. It assumes all clients implement the PainChek App and enter a standard PainChek contract after the initial 12-month grant period. So far 75% of PainChek’s existing clients have entered into agreements that have second-year commercial terms post completion of the government grant period.
PainChek also confirmed that $5.5 million of ARR means that, as a company, they have established a client base that can cover its existing core business costs in Australia, even though the current Australian RAC agreements represent just 2% of the global RAC market opportunity.
PainChek is now entering the overseas aged care markets and the larger global home care and hospital markets through the PainChek Adult Universal App and the Infant App, both of which recently received international regulatory clearance.
PainChek CEO Philip Daffas said: “We take this opportunity to thank the Federal Government and Department of Health for their support in this process. We set out to accelerate PainChek’s application into Residential Aged Care and to help improve the care for those people living with dementia. Both goals are on track to be achieved, and a large number of Australian aged care providers and facilities are now reporting on the positive clinical benefits of PainChek for their residents and staff.”