Company to Discuss Merger With AEON, Introduce AEON Business and New Senior Management, in Conference Call today at 12 p.m. ET
Additional Financial Information can be Found in Form 8-K Filed February 1
BERKELEY HEIGHTS, N.J., Feb. 02, 2016, ADAT, (GLOBE NEWSWIRE) — Authentidate Holding Corp. (Nasdaq:ADAT) today announced AEON’s nine-month 2015 financial results for the period ending September 30, 2015. Authentidate recently completed merger transaction whereby privately-held AEON has merged with a wholly-owned subsidiary of Authentidate, creating a company focused on delivering innovative solutions that achieve technology best practices in medicine and raise the standard of healthcare.
The unaudited financial results for AEON include:
- Revenue for the nine month period ended September 30, 2015 of $21.6 million up 15% year over year
- Net income for the nine months of $6.8 million representing 31% net margin
- $6.9 million in cash and cash equivalents as of September 30, 2015.
In addition, Authentidate disclosed benchmark targets for AEON, used to earn additional stock-based consideration. These targets include:
- Generating $16 million in EBITDA for the calendar year ended 2015, and
- $100 million in aggregate EBITDA for the calendar years 2016 through 2019.
Additional information regarding the merger, including updated financial information, will be discussed when the Company hosts a conference call today at 12 p.m. ET. The call will be hosted by Richard Hersperger, the Company’s new Chief Executive Officer, and Mr. Hersperger will discuss the merger transaction, combined financial outlook and introduce new senior management. In addition, Mr. Hersperger will take questions from investors.
The dial-in number for callers in the U.S. is 877-407-8293 and the dial in number for international callers is 201-689-8349. Or, participants may access a live webcast of the conference call by clicking the link listed on Authentidate’s Investor Events Page at URL:http://www.authentidate.com/investors/investor-events
AEON’s primary business focus is on the “Personalized Medicine” approach to laboratory testing. This includes the testing of an individual’s blood, urine or saliva for the presence of drugs or chemicals and the patient’s DNA profile. AEON provides health care professionals with four primary tests: Pharmacogenomics, Cancer Genetic Testing, Molecular Microbiology, and Medical Toxicology.
AEON believes that in 2014, the U.S. clinical laboratory testing industry generated revenues of approximately $60.0 billion based on Washington G-2 reports and other industry publications. The Centers for Medicare and Medicaid Services of the Department of Health and Human Services have estimated that in 2014 there were more than 8,900 hospital-based laboratories, 121,200 physician-office laboratories and 5,900 independent clinical laboratories in the U.S.
Genetic testing: 3 tests commercialized, with new test launching in the coming 18-months.
AEON is an innovator in the genetic testing area with three established genetic tests today (pharmacogenomics, cancer genetic testing and cancer tumor) and a pipeline of additional genetic tests in development which it plans to bring to market over the coming eighteen months. AEON is investing to expand its genetic testing capabilities to address the rapidly increasing demand for more personalized medical analysis that involves using an individual’s genetic profile to guide decisions regarding the prevention, diagnosis, and treatment of disease. AEON strives to offer unique testing specifically designed for its increased focus on personalized medicine, with superior service levels. In this effort, AEON provides advanced testing in DNA pharmacogenomics, cancer genetics and molecular microbiology. Genomic testing is more complex than conventional toxicology testing, requires unique knowledge and significantly more sophisticated equipment. As a result, genetic testing commands higher pricing while enjoying significantly less competition.
Cancer Tests: Offers analysis of 38 Genes, covering 18 Different Cancers.
AEON provides testing for hereditary cancer markers, offering multiple BRCA testing options including comprehensive sequencing and deletion/duplication analyses of BRCA1 and BRCA2 and numerous multigene panels. AEON offers the analysis of thirty-eight genes covering eighteen different cancers.
Molecular Microbiology tests: analysis for 22 Pathogens
Molecular microbiology identifies microorganisms including viruses, bacteria and parasites through DNA or RNA detection vs. traditional microbiology procedures which use culture to grow potential microorganisms. AEON’s gastrointestinal panel tests for 22 pathogens from a stool sample and its respiratory panel tests for 20 pathogens from a nasopharyngeal swab.
Toxicology tests: 15,000 Tests Per Month
AEON’s toxicology testing utilizes HPLC-Tandem Mass Spectrometry testing and provides information about medications and other substances in the patient’s system from either urine or oral fluid samples with rapid 48-72 hour turnaround time. This information helps guide a clinician’s treatment of a patient and helps to ensure the safe use of prescription and other medications in pain management, substance abuse, hospital, and other clinical applications and is also routinely used in employment screening and law enforcement. AEON offers a comprehensive set of toxicology tests and conducts more than 15,000 tests per month.
Revenue, Sales and Marketing
AEON provides testing services to a broad range of health care providers and other customers. AEON’s services are paid for through a mix of reimbursement from Medicare, Medicaid and private health insurance along with direct pay clients. Currently, the top fifty payors represent over 83% of AEON’s billings with 39% of these billings representing in network insurance charges. AEON is currently working to become an in-network provider under contract with 100% of its private health insurance payors which it believes will result in higher revenues and higher collections. As the Company shifts its focus to the large, national payors, management expects the percentage of in-network billings to rapidly increase.
As AEON continues to grow, it plans to pursue additional Lab-to-Lab Reference relationships to further drive increased contracted volume with lower cost of acquisition per new patient and per test. Under this model large accounts would contract with AEON under two primary scenarios:
*Large account with its own existing lab contracts with AEON to serve as a reference lab;
*Large account without a lab contracts with AEON as a reference lab. In this case AEON will help the account build out a lab and may also provide lab management services.
In each case, AEON believes it will gain significant volumes of new contracted testing.
Additional information is available by accessing copies of the Company’s most recent 8-K which are available at www.sec.gov or at www.authentidate.com under the SEC filings tab located on the Investor Relations page, as well as joining today’s conference call.
A dial-in replay of the call will be available through February 16, 2016. To access the replay, please dial 877-660-6853 in the U.S. and 201-612-7415 internationally, and enter the conference ID # 13629758. A link to replay the webcast of the conference call will be listed on Authentidate’s Investor Events & Presentations page at http://www.authentidate.com/investors/investor-events
About AEON Clinical Laboratories
AEON Clinical Laboratories is a growing comprehensive and efficient clinical laboratory using state of the art testing equipment. Housed in a 28,000 square foot campus, in Gainesville, Georgia, AEON emphasizes Technology Innovation. AEON has developed proprietary methodologies that provide some of the fastest and most reliable urine and oral fluid (saliva) test results in the nation. AEON provides health care professionals with four primary tests: Medical Toxicology, Pharmacogenomics, Cancer Genetic Testing, and Molecular Biology.
About Authentidate Holding Corp.
Authentidate Holding Corp. is a provider of secure web-based revenue cycle management applications and telehealth products and services that enable healthcare organizations to coordinate care for patients and enhance related administrative and clinical workflows. Authentidate’s products and services enable healthcare organizations to increase revenues, reduce costs and enhance patient care by eliminating paper and manual work steps from clinical and administrative processes. Authentidate’s telehealth solutions combine patient vital signs monitoring with a web application that streamlines patient care management. Delivered as Software as a Service (SaaS), customers only require an Internet connection and web browser to access our web-based applications thereby utilizing previous investments in systems and technology. The Company’s healthcare customers and users include leading homecare companies, health systems, physician groups and governmental entities. These organizations utilize the Company’s products and services to coordinate care for patients outside of acute-care.
Authentidate, Inscrybe and InscrybeMD are registered trademarks of Authentidate Holding Corp. All other trade names are the property of their respective owners.
For more information, visit the company’s website at www.authentidate.com
This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Act of 1934. When used in this release, the words “believe,” “anticipate,” “think,” “intend,” “plan,” “will be,” “expect,” and similar expressions identify such forward-looking statements. Such statements regarding future events and/or the future financial performance of the company are subject to certain risks and uncertainties, which could cause actual events or the actual future results of the company to differ materially from any forward-looking statement. Such risks and uncertainties include, among other things, the availability of any needed financing, the company’s ability to implement its business plan for various applications of its technologies, the impact of competition, the management of growth, and the other risks and uncertainties that may be detailed from time to time in the company’s reports filed with the Securities and Exchange Commission. In light of the significant risks and uncertainties inherent in the forward-looking statements included herein, the inclusion of such statements should not be regarded as a representation by the company or any other person that the objectives and plans of the company will be achieved.