05/07/2017 Biotech Medibio appoints JFK nephew Patrick Kennedy to board http://www.theaustralian.com.au/bus...-to-board/news-story/7c83c6517c7a6f89d18bb2a… 1/3
THE AUSTRALIAN Biotech Medibio appoints JFK nephew Patrick Kennedy to board
Australian-listed biotech Medibio continues its high-profile board appointments with Patrick Kennedy, nephew of former US president John F Kennedy, joining the company.
His appointment follows the mental health-focused company revealing last month that American swim star Michael Phelps had been appointed to its board.
Mr Kennedy, a former US congressman, has long been an advocate for mental healthcare and was a lead sponsor of the Mental Health Parity Act while a member of the US House of Representatives. It was a bill that required most group health plans to provide coverage for the treatment of mental illness that was comparable to what they provided for physical illness
“Medibio’s technology is truly groundbreaking and has the potential to fundamentally change the mental health system for the better,” Mr Kennedy said.
“This is a company that is truly on the cutting edge and their diagnostic and analytic tools will give clinicians the power to treat patients more effectively, using better data and with a focus on better outcomes.”
Medibio has developed a test to diagnose depression, chronic stress and other mental health disorders. Jack Cosentino, managing director of Medibio, said Mr Kennedy’s history as a US congressman and his advocacy for mental health would open doors and heighten awareness for Medibio’s technology. “His knowledge, both through personal experience and legislative accomplishments, will help guide us in laying the strategic foundations for largescale operations and the necessary payment and reimbursement coverage of our technology,” he said.
Having Mr Kennedy and Olympic champion Phelps on Medibio’s board will help boost its plan to push into the US mental health management market, which is estimated to be valued at $US200 billion ($263bn) a year.
With a market capitalisation of $45 million, Medibio’s technology is based on research conducted over 15 years at the University of Western Australia. The test uses panel circadian, sleep and autonomic system biomarkers to - objectively quantify and characterise mental illness. The technology consists of a wearable heart monitor that sends recordings wirelessly to the internet, where a proprietary algorithm analyses and delivers a diagnosis.
Market research, previously commissioned by Medibio, determined there was a $US16bn worldwide revenue opportunity in the medical field for depression alone. For workplace stress in the US, Australia and New Zealand, the market opportunity is $US2.8bn.
Shares in Medibio lifted 1.4 per cent to 36c yesterday, as Morgans initiated coverage of the company with a $1.20 target price. Analyst Scott Power said Medibio’s key strengths included its success in recent trials, over and above current standard-of-care methods, and high operational leverage and scalability. He added that its low cost versus competing methods and a large addressable market also favoured the stock.
“We expect revenue to start in 2018 from the use of its screening technology in military, veterans affairs and corporate wellness segments,” Mr Power said in a client note on the stock.
MEB Price at posting:
36.0¢ Sentiment: Buy Disclosure: Held
