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I know we are coming from a very low base, but to be in positive territory on results day seems significant for FUM. As a reminder, the share price has not reacted well in recent past.....

10Sep24 H1 ↓5%

10Apr24 FY ↓13.5%

18Sep23 H1 ↓4.2%

05Apr23 FY ↓3.1%

13Sep22 H1 ↓4.4%

26Apr22 FY ↑1.4%

Amilia Stone, April 8, 2025, 5:29 pm

In the dynamic world of healthcare technology, Talking Medicines stands out by seamlessly blending the innovative spirit of Silicon Valley with Scotland’s rich entrepreneurial heritage. This fusion has propelled the company to the forefront of AI-driven healthcare marketing solutions, offering invaluable lessons for investors seeking promising ventures.

Talking Medicines has recently been selected as one of five pioneering Scottish companies to participate in Scottish Enterprise’s US MarketBooster Programme. This initiative aims to accelerate their expansion into the US market, providing access to invaluable networks and resources. Such strategic moves underscore the company’s commitment to growth and its ability to leverage international opportunities effectively.

The company’s flagship product, Drug-GPT, exemplifies their innovative approach. This AI-powered tool delivers actionable insights by analysing conversational data from both healthcare professionals and patients. By harnessing advanced data science and artificial intelligence, Talking Medicines enables pharmaceutical companies to refine their marketing strategies, ensuring they resonate with target audiences. This not only enhances marketing efficiency but also contributes to improved patient outcomes—a core aspect of the company’s social mission.

Financial backing has played a crucial role in Talking Medicines’ trajectory. A notable £1.5 million funding round fuelled their US growth plans, demonstrating investor confidence in their vision and capabilities. Such investments have facilitated the development of proprietary AI models and the expansion of their product offerings, positioning the company as a leader in the intersection of healthcare and technology.

The company’s commitment to ethical practices is evident in its Environmental, Social, and Governance (ESG) initiatives. By prioritising data privacy and ethical AI usage, Talking Medicines not only adheres to industry best practices but also builds trust with clients and partners. This focus on responsible innovation enhances their reputation and appeal in the competitive healthcare technology sector.

As the healthcare industry increasingly embraces AI and large language models, Talking Medicines is well-positioned to capitalise on this trend. Their expertise in processing unstructured real-world conversational data offers pharmaceutical companies a competitive edge in understanding and engaging with their audiences. This capability is particularly relevant as the industry seeks more personalised and effective marketing strategies.

Talking Medicines exemplifies how integrating diverse entrepreneurial cultures can drive innovation and growth. Their strategic expansion efforts, robust financial backing, commitment to ethical practices, and cutting-edge AI solutions make them a compelling prospect for investors looking to tap into the evolving healthcare tec

Operator

Thank you. Our next question is from Celine Pannuti from JPMorgan. The line is now open. Please go ahead.

Celine Pannuti

Can I just ask you on Eroxon, so what kind of number are we looking at for the first quarter where you’re launching? Are we looking at a run rate of $100 million for 12 months? You did like $25 million per quarter we should be thinking about.

Tobias Hestler

So, Celine, I would wish it was the simple model, right? And I think the answer is simply I don’t know, right? I think the good news is the retailers have taken the product and it’s on shelves. So you get the shelf bill that we’ve done in October, and that’s positive, right? So that gives you a nice distribution and a first pop-in sale. Now, it’s a question of are we seeing the reorders? Are we seeing the repeat? Is that coming back? And it’s a new category that we’re building. And that’s what is the piece that is hard to estimate, right?

So from my perspective, I think way too early to indicate that. We’ll tell you in Q4 what happens or in the full year results, but I don’t think there’s this one that you can exactly guide on and model there. So now, I mean, I said before in investor meetings and with you guys that the reason we’re doing this is because it’s an unmet consumer need, and we believe it’s worth building a single market brand to do that.And, we would only do this if we believe there’s a potential of $100 million plus in revenue, but that doesn’t mean it’s going to come tomorrow or in the first quarter. This will be a slow build, because you’re not going to build a new U.S. brand for $20 million or $30 million of revenue. That’s not enough what you need to sustain the brand in the long run, right? So, I think we have an ambition that is $100 million or more, but that’s what we have to see as we execute on our plans, yeah?

And, I think the execution so far has been good. If you have time, look a bit of the advertising that’s out there. I think the team has done a really good job in starting to land that, but I think it’s a new category for us, for the retailer and for the consumer, and that will just take a little bit of time.

Edited to only include Eroxon references

Operator

Thank you. Our next question is from Iain Simpson from Barclays. Iain, your line is now open. Please go ahead.

Iain Simpson

And then my second question is around Eroxon, where clearly that’s launched pretty recently. So I’m guessing you don’t have much in the way of sell out data yet, but fascinated to hear what you do have. But are you able to share anything on retailer uptake of Eroxon? How broadly distributed is it in U.S. stores versus your expectations for this point in the launch? Thank you so much.

Tobias Hestler

On Eroxon, so yes we launched, we started shipments pretty much the first of the quarter day, we pre-launched it for e-comm a few days earlier, but really shipment started very early in the year. Way too early to tell, I mean, we’ve talked before right we’re building a new category in the new part of the shelf. Uptake by retailers has been very good, so we’re well above 80% and sometimes even higher percent of distribution in our biggest customers. All of our big retailers, all the big customers have taken it.

So, I think there’s been good uptake on the product and they were also ready to do a shelf reset outside the normal time, which shows there is support. There’s good retailer support also in terms of advertising – a placing of materials in the trade, because the retailers agree this is an attractive and unmet consumer need. We fully launched advertising towards the middle of October, so that’s when we kicked off advertising and we used the NFL as sort of the big kick off and we did big advertising during the NFL games that ticked off and I think that is then you see that and directly translating especially in the e-comm side into demand. So, we’re starting to see sales come through.

So, look, distribution is there, we’re activating now. So all of that has gone, I would say, executionally very well. And then, we’ll see what comes from it. So, I think excited about it, but way too early to say where this is going, just given it’s a new category. Thank you.

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