Advanced Health Intelligence (NASDAQ: AHI) has executed a binding, exclusive, and perpetual license agreement with Changlin Network Technology Ltd., a Shanghai-based company. This comprehensive summary focuses on the details, implications, and significance of the partnership, highlighting the vision and goals that both companies aim to achieve.
The Partners – AHI and Changlin Network Technology Ltd.
AHI: A Leader in Digital Health Solutions
Advanced Health Intelligence (AHI), a South Perth, Western Australia-based company, is recognized for its innovative and scalable digital healthcare solutions. Their advanced technology will now be accessible in China through Changlin.
Changlin: Pioneering Transformation in Health Insurance
Changlin was established in 2019, leveraging its founders’ 50-year global experience in the health insurance sector. The company’s strategy aligns with the “China 2030 health initiative,” aiming to modernize the healthcare landscape in China through digital transformation.
Terms of the License Agreement
Upfront Payment and Annual License Fee
- Changlin will pay AHI an upfront payment of USD$10 million for the exclusive rights to the technology.
- The agreement includes an annual license fee of USD$5 million.
Revenue Share and Intellectual Property
- AHI will receive a 25% revenue share of Changlin’s gross sales, paid quarterly.
- Changlin has the rights to localize and develop its own intellectual property (IP) related to AHI’s licensed technology.
Geographical Limitations and Shareholding
- Changlin may only commercialize the technology within the People’s Republic of China.
- AHI will initially hold a 50% share in Changlin, which may reconstruct to 25% but not less than 20% of its common shares at the Changlin IPO in 2024.
Aligning with China’s Vision for Healthcare Transformation
The China 2030 Health Initiative
The collaboration between AHI and Changlin resonates with China’s 2030 Health Initiative. This ambitious roadmap aims to promote healthier lifestyles, improve health services, and strengthen healthcare infrastructure.
AHI’s Role in Chronic Disease Management
With China facing an increasing prevalence of chronic diseases, AHI’s biometric health assessment technology will aid early identification and intervention, thereby reducing the healthcare burden.
Accessibility through Mobile Technology
The integration of AHI’s health screening capabilities within mobile phone technology will ensure accessibility and convenience for China’s population of 1.4 billion people.
Implications for AHI and Changlin
Financial Impact
AHI expects to benefit from the USD$10 million license fee payment within 90 days, plus the annual USD$5 million license fee, and revenue share from Changlin’s gross sales.
Technological Innovation and Expansion
The partnership aims to unlock scalable solutions for preventative healthcare in China. Changlin’s strategy to embed health screening functionalities into everyday devices and AHI’s commitment to identifying risk in chronic diseases are poised to make a significant impact on China’s healthcare landscape.
Changlin’s Plan for IPO
Changlin is targeting an initial public offering (IPO) in 2024. AHI’s strategic stake in Changlin, along with the financial terms of the agreement, places both companies in a strong position for future growth.
Conclusion
The collaboration between Advanced Health Intelligence and Changlin Network Technology Ltd represents a critical step towards realizing China’s vision for a technologically advanced healthcare system. With AHI’s groundbreaking solutions and Changlin’s mission to revolutionize healthcare delivery, this partnership is set to pave the way for better health outcomes, cost-effective innovation, and a transformative approach to managing chronic diseases in China.
By leveraging the power of advanced digital technology and focusing on accessibility and convenience, AHI and Changlin are leading a future of healthcare that aligns with the broader societal needs and government initiatives. The agreement’s financial terms further ensure a robust foundation for both companies’ growth, marking a significant milestone in the global healthcare sector.
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