Medibio is a Melbourne based health technology company pioneering the use of objective measures to aid in the early detection and screening of mental health conditions. Their product offers mental well-being solutions for businesses and are also developing products to serve the healthcare provider market. They are a small company with a market capitalisation of just over $14 million. The share price has really come of age since July 2020 and Medibio has returned 125% over the past 1 year.
This morning, Medibio announced that they have signed the first Statement of Works agreement with Compass Group to begin the implementation of ilumen in the UK. Ilumen is a corporate mental health software product that provides an employer with aggregated data to measure and manage the mental wellbeing of their workforce. This enables employers to better manage their human resource at a time when work-from-home has become the new normal and lots of people need assistance with mental health related issues induced by the pandemic.
The agreement enables the use of Ilumen on at least 1000 employees for a minimum period of 12 months. It is also just the first stage of the software product’s rollout to Compass’ workforce. A successful implementation here will put Medibio’s product on the radar for most companies and can thus become very lucrative, very quickly. The markets have digested this news extremely well and Medibio shares ended the day 11% higher. This takes the return on Medibio shares to 25% year-to-date.
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