HEALWELL AI Announces Strategic Investment and Commercialization Agreement with Abstractive Health to Advance Generative AI-Powered Clinical Documentation Solutions
HEALWELL AI completes a strategic investment in NY-based Abstractive Health, alongside lead investor Rho Capital Partners, to support the development of AI-driven clinical documentation technology.
Concurrent with the investment, HEALWELL also entered into a commercial agreement with Abstractive Health that provides HEALWELL with exclusive distribution rights to the Canadian outpatient healthcare market.
Abstractive Health's AI software leverages LLMs and other generative AI technology to automate medical record summaries for physicians and clinicians, streamlining healthcare documentation processes.
HEALWELL expects to leverage its strategic relationship with WELL Health Technologies (TSX: WELL) and add Abstractive Health to WELL's apps.health marketplace and grow its cadre of co-pilot technologies to further tech enable healthcare providers.
Toronto, Ontario--(Newsfile Corp. - October 22, 2024) - HEALWELL AI Inc. (TSX: AIDX) (OTCQX: HWAIF) ("HEALWELL" or the "Company"), a healthcare technology company focused on AI and data science for preventative care, is pleased to announce its USD$250,000 strategic investment in Abstractive Health ("Abstractive Health"), a healthcare AI company specializing in providing physicians with an automated, accurate and medically relevant AI assistant that delivers patient summaries using proprietary generative AI technology. This investment is part of a broader funding round, led by Rho Capital Partners as lead investor and Cornell University via Cornell Technology as an existing investor. Leveraging the current Conditional Decision Support co-pilots HEALWELL currently offers, the Company will have the exclusive right to distribute Abstractive's products as an extension of its existing AI-enabled co-pilot technology suite through WELL Health Technologies' extensive network of outpatient healthcare clinics.
Founded in 2022 and based in New York, Abstractive Health is a pioneer in healthcare AI led by co-founder and CEO Vince Hartman. Abstractive Health is transforming the healthcare industry by automating the summarization of patient medical records through its AI-powered software, designed to assist physicians and clinicians in reducing time spent on documentation while improving efficiency. This AI-driven solution provides comprehensive patient summaries, akin to a one-page brief on a patient's health, offering doctors and healthcare practitioners valuable insights. This value-added service streamlines the review of patient records and healthcare data of all kinds, enabling healthcare professionals to focus more on patient care.
Dr. Alexander Dobranowski, CEO of HEALWELL, commented, "We are excited to invest in Abstractive Health, whose technology aligns with our vision of enhancing healthcare through the power of AI. Abstractive Health is more than just another digital tool in the tech stack making clinics more efficient. It is an essential link between all the data being ingested by electronic medical records (EMRs) and a physician's ability to consume it. This strategic investment strengthens HEALWELL's commitment to leveraging AI to improve clinical workflows and patient outcomes. The automation of clinical documentation is a crucial advancement in healthcare, and we believe Abstractive Health is poised to make a significant impact in this space."
Abstractive Health has developed HIPAA-compliant, proprietary generative AI technology that provides physicians with accurate, medically relevant patient summaries. Unlike competitors that rely on widely available large language models (LLMs), Abstractive Health has built its solutions in-house, ensuring greater control over the quality and security of its AI-driven tools. Their platform has already gained early traction with prestigious medical centers, including New York Presbyterian and Cleveland Clinic of Abu Dhabi.
Vince Hartman, CEO of Abstractive Health, added, "We are excited to be working with HEALWELL and to have them as partners in Abstractive Health's journey as we share a similar mission in leveraging the power of AI to improve healthcare and patient outcomes. While ambient scribes have been revolutionary in reducing clinical workload, they are still adding data to a growing pool, requiring increasingly sophisticated technology to summarize, analyze, and simplify. Our solutions go a step further enabling meaningful insights to be drawn from this ever-expanding 'data lake'. Ultimately, our AI-powered solution is the connective tissue between the ever-growing amounts of patient data and the actionable insights physicians need to provide quality care."
HEALWELL AI is investing US$250,000 through a SAFE Note structure with a post-valuation cap of $10 million which is part of a broader funding round that includes others such as Rho Capital Partners, as the lead investor, and Pear VC and Cornell University via Cornell Technology among existing investors.
As part of the investment, HEALWELL AI and Abstractive Health have also entered into a partnership and commercialization agreement in the form of a four-year strategic alliance agreement (the "SAA") providing HEALWELL the exclusive right to distribute Abstractive Health's technology in the outpatient healthcare space across Canada. The SAA will ensure that Abstractive Health's cutting-edge technology is made available across HEALWELL and WELL Health Technologies' extensive Canadian distribution networks.
Dr. Alexander Dobranowski Chief Executive Officer HEALWELL AI Inc.
About HEALWELL AI
HEALWELL is a healthcare technology company focused on AI and data science for preventative care. Its mission is to improve healthcare and save lives through early identification and detection of disease. Using its own proprietary technology, the Company is developing and commercializing advanced clinical decision support systems that can help healthcare providers detect rare and chronic diseases, improve efficiency of their practice and ultimately help improve patient health outcomes. HEALWELL is executing a strategy centered around developing and acquiring technology and clinical sciences capabilities that complement the Company's road map. HEALWELL is publicly traded on the Toronto Stock Exchange (the "TSX") under the symbol "AIDX" and on the OTC Exchange under the symbol "HWAIF". To learn more about HEALWELL, please visit https://healwell.ai/.
Forward-Looking Statements
Certain statements in this press release, constitute "forward-looking information" and "forward looking statements" (collectively, "forward-looking statements") within the meaning of applicable Canadian securities laws and are based on assumptions, expectations, estimates and projections as of the date of this press release. Forward-looking statements in this press release include statements with respect to, among other things, the potential synergies and opportunities afforded to the Company through its investment in Abstractive Health. Forward-looking statements are often, but not always, identified by words or phrases such as "seek", "opportunity", "potential", "improve", "expect", "future", "plan", "position", "opportunity" or variations of such words and phrases or statements that certain future conditions, actions, events or results "will", "may", "could", "would", "should", "might" or "can" be taken, occur or be achieved, or the negative of any of these terms . Forward-looking statements are necessarily based upon management's perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by HEALWELL as of the date of such statements, are outside of HEALWELL's control and are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in the forward-looking statements ultimately being entirely or partially incorrect or untrue. Forward-looking statements contained in this press release are based on various assumptions, including, but not limited to, the following: HEALWELL's ability to foster and maintain its business relationships, including with Abstractive Health; HEALWELL's ability to access and leverage Abstractive Health's technology, datasets and expertise; trends in customer growth; HEALWELL's ability to develop new technologies and the timelines on which they can be developed; new technologies functioning as expected; customers adopting and using new technologies and services as expected; the need to develop increasingly innovative products and services; competition in the industry; the stability of general economic and market conditions; HEALWELL's ability to comply with applicable laws and regulations; HEALWELL's continued compliance with third party intellectual property rights; and that the risk factors noted below, collectively, do not have a material impact on HEALWELL's business, operations, revenues and/or results. By their nature, forward-looking statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections, or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved.
Known and unknown risk factors, many of which are beyond the control of HEALWELL, could cause the actual results of HEALWELL to differ materially from the results, performance, achievements, or developments expressed or implied by such forward-looking statements. Such risk factors include but are not limited to those factors which are discussed under the section entitled "Risk Factors" in HEALWELL's most recent annual information form dated April 1, 2024, which is available under HEALWELL's SEDAR+ profile at www.sedarplus.com. The risk factors are not intended to represent a complete list of the factors that could affect HEALWELL and the reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. HEALWELL disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law. All of the forward-looking statements contained in this press release are qualified by these cautionary statements.
For more information:
Pardeep S. Sangha Investor Relations, HEALWELL AI Inc. Phone: 604-572-6392 ir@healwell.ai
