Company update, page-8

Best I can do...


27 October 2023
Dear fellow shareholders,

I am wri�ng today to provide an update on the Company’s progress and an overview of our current focus areas.

Firstly, our thoughts are with all the innocent vic�ms affected by the war in the Middle East. The impact on our Israeli team has been significant. Despite the tragedy directly impac�ng them, the team con�nues to work harder than ever; to progress the business with an unmatched resolve and intensity. Personally, I have never experienced this level of commitment and focus, even during �mes of peace. I have an enormous sense of admira�on for our Israeli team that HeraMED has con�nued to operate as business as usual over the last few weeks.

When I was appointed Execu�ve Chairman in July 2023, my remit was to lead the commercialisa�on of HeraCARE by developing a disciplined sales and marke�ng strategy. Since July, I have spent a lot of �me listening and learning from both internal and external stakeholders to determine how we can improve execu�on of our commercialisa�on strategy.

The Company has built strong founda�ons which can be summarised as follows:

1. HeraCARE is a market leading pla�orm offering a fully integrated, remote, connected maternity care solu�on designed to deliver beter care at a lower cost, ensure expectant mothers are engaged, informed and well-supported, allowing healthcare professionals to provide the highest quality care and enabling early detec�on and preven�on of poten�al risks;

2. Clinical trials published in leading scien�fic journals have validated the accuracy, interpretability, usability, and acceptability of the in-home foetal and maternal heart rate monitor HeraBEAT when compared to the industry gold standard hospital-based equipment;

3. Ini�al customers have provided an evidence base from more than 2,700 pregnancies;

4. Strong pipeline across all customer ver�cals in Australia and the US;

5. Strong interest from leading healthcare ins�tu�ons to undertake further research and collabora�ons;

6. Key sales execu�ves in place in target markets; and

7. Globally, there is a large and growing unmet medical need for improved maternity care as well as a

   move towards ‘home as a clinic’ and remote pa�ent monitoring that further support the viability of the HeraCARE solu�on.

As a result of these strong founda�ons, the interest in our technology con�nues to accelerate in our key target markets due to well documented problems facing maternity care only becoming more urgent. We have onboarded several customers during the past 18 months, most significantly Joondalup Health Campus and e’Lōvu Health, both of which have provided strong evidence to the value proposi�on of HeraCARE. Furthermore, they have also provided key learnings with respect to sales cycles in different customer ver�cals, onboarding and implementa�on, ongoing customer support and further refinement to HeraCARE as a solu�on.

We con�nue to progress discussions with key leading hospitals (both in Australia and the US) which have the poten�al to become champions for HeraCARE and are now in the final stages of comple�on. I will be delighted to update shareholders once these agreements are completed as we start to demonstrate broader commercial trac�on over the coming weeks.

However, and I like to be direct, we are all disappointed with the sales cycle to date which has proven to be far longer than an�cipated and we need to address that. So far on our journey, we have been somewhat exploratory in our approach to commercialisa�on as we engage with different customer sets.

HeraMED Limited ACN 626 295 314T: +61 2 7251 1888 | A: Suite 4, Level 16, 55 Clarence Street SYDNEY NSW 2000

Each customer onboarded to date, or soon to be onboarded, has had a very innova�ve, future facing approach to digital health and adop�on of new technologies or an urgent need. HeraCARE represents a new mode of care, which has led to a conserva�ve approach to commercial agreements and adop�on by prospec�ve healthcare providers even when the urgency is great.

One of our primary objec�ves in the short term is to focus on strategies to shorten the sales cycle. Over the last 12 months, we have begun to make significant investment at the front end of our business and have con�nued to build market and customer understanding supported by deepening health economic and reimbursement research. We s�ll have significant work to do on each of these fronts to focus our commercialisa�on strategy.

Evolving commercialisa�on strategy

The focus now is on ensuring the Company becomes more flexible and streamlined to roll out HeraCARE. In recent months we have received significant inbound interest in the pla�orm. These inbound enquiries validate the increasing challenges associated with maternity care. We are consistently told by poten�al customers who have undertaken market screenings that HeraCARE offers the most complete remote solu�on. How can we beter expedite this interest into commercial agreements?

We need to focus our aten�on on where agreements can be reached and as fast as possible. Large hospitals provide an ability to scale but take �me, smaller clinics can integrate HeraCARE faster, but the opportunity is smaller and requires more customer support. Digital pla�orms allow for access to large audiences of pregnant mums but the sell through management is more complex. We need to determine how we can increase users on the pla�orm in the most expedi�ous way.

Our priority must be to understand the challenges being faced by the hospital or healthcare provider. Understanding the circumstances of each customer helps us to beter scope the opportunity for HeraMED in terms of customer urgency (speed of sales cycle), size of opportunity, clear value proposi�on of HeraCARE, decision making process of the hospital and any required customiza�on of HeraCARE to ensure it is fit for purpose.

A successful sales process requires engagement across all the key stakeholders in the provision of maternity care in the hospital – midwives, clinicians, OBGYN’s and the execu�ve team. Each of these stakeholder groups needs to be engaged directly by HeraMED and be suppor�ve of adop�ng HeraCARE for a successful adop�on to occur.

To address the length of the sales cycle, we have responded with the following priori�es:

1. Simplify and Priori�se:

Focus on customers that are in the greatest need for HeraCARE, have the lowest barriers to uptake, and represent the easiest implementa�on. These are clinics facing the mortality crisis or in the maternal deserts and rural areas where access to care is difficult. Pleasingly we are well progressed with clinician groups facing each of these challenges and expect to enter agreements as we seek to collaborate with rural and regional clinician groups to get a wider reach. We are well progressed with healthcare groups that support this customer set and I look forward to comple�ng pilot agreements in the near-term.

Secondly, we are focusing on markets where state and na�onal governments have already iden�fied remote maternal care as a key priority. Several states including Florida have already taken policy steps with grant funding forming an element of the commercial model for some of our commercial discussions. The Netherlands is another country that has made public policy decisions to assess digital remote

HeraMED Limited ACN 626 295 314
| A: Suite 4, Level 16, 55 Clarence Street SYDNEY NSW 2000

medical pregnancy care becoming the na�onal standard. It has already proven the value as evidenced in this Lancet ar�cle:

htps://www.thelancet.com/journals/landig/ar�cle/PIIS2589-7500(22)00231-X/fulltext

Although s�ll confiden�al in its nature HeraCARE has been assessed in a clinical trial as part of this strategic ini�a�ve with leading universi�es and research ins�tu�ons in the Netherlands. Pregnadigit of which HeraMED is a partner, has built a consor�um of technology and service providers in the Netherlands and aims to have at least 50% of current physical outpa�ent and clinical pregnancy care replaced by digital remote care by 2030. It is awai�ng the formal go ahead for funding from theNetherlands Health Ministry in December 2023.

I look forward to being able to share the results of these trials as the Netherlands which will hopefully become a significant opportunity for HeraCARE. It is important to note that this is not a distrac�on to our key markets, nor is it opportunis�c, but we have been selected to be part of this Dutch ini�a�ve of which Philips is a partner, to transform management of maternal care.

We won’t take our focus off the larger USA organisa�ons such as hospitals, with higher numbers of pregnancies, however we recognize that they have higher barriers to entry due to compliance and administra�on.

1. Agile pricing models

   We acknowledge that different hospitals (for example public vs. private) and clinics have different business models and may require customised product packages.

2. Agile pla�orm

   We need to con�nue to customise and adapt our pla�orm to suit the needs and workflows of our customers including for example reimbursements, frequency of alerts, levels of support for the pregnant women, transla�ons into different languages, ability to integrate new devices such as the glucometer readings. Addi�onally, we are working to integrate insurer billing based on the relevant billing codes in the US to smooth the process of reimbursement.

   We are also assessing ways to expand our exis�ng mental health features and looking to partner with respected mental health ins�tu�ons.

3. Implementa�on

   To ensure the deployment and integra�on of HeraCARE is successful implementa�on support from HeraCARE is cri�cal. Successful implementa�on is mul�-faceted from our tech team working closely with the IT team from the hospital across any customised integra�ons, to ensuring all local data regula�ons are adhered to through, to onsite training and educa�on for midwives, clinicians, and managers responsible for HeraCARE within the hospital. The implementa�on phase with Gold Coast hospital has been a huge undertaking with many learnings allowing for refined processes for other hospitals. A clear learning is onsite support is required to ensure a successful implementa�on.

5. Collaborate

We need build the number of strategic partners to support all facets of the business.

Adding additional devices to HeraCARE

HeraMED Limited ACN 626 295 314
| A: Suite 4, Level 16, 55 Clarence Street SYDNEY NSW 2000

There is a strong demand amongst clinicians to integrate glucometer readings par�cularly in the USA, as exis�ng pre-diabe�c and diabe�c mums require a higher level of monitoring and risk assessment. Obesity and subsequent diabetes are in epidemic propor�ons in the USA and these pa�ents as well as those that acquire it during pregnancy are at significantly higher risk of developing pre-eclampsia and poten�ally fatal outcomes. In addi�on to glucose monitoring, we have also been approached by leading companies in pathology to integrate blood and urine tes�ng into HeraCARE via their home tes�ng solu�ons.

To this end we are in discussions with a number of global medical companies in order to partner with them for best pricing of their devices, promo�on of their brand, research and expanding their market reach in maternal and women’s health. This will definitely improve the value proposi�on of HeraCARE. Ideally one these companies will be a strategic investor and use its connec�vity and large customer base to open doors for us.

Further Research to Commercial Ends

We will also increase partnering with flagship medical ins�tu�ons allowing us to gain further product champions, con�nue to deepen knowledge and database, become known to their commercial partners, and develop funding opportuni�es. Governments, hospitals, large medical corpora�ons, and insurers are convinced by clinical and economic data and results. This will lead to changes in guidelines and posi�on us to be the standard of care for pregnancy. In turn this will lead to accelerated pa�ent data and the iden�fica�on of early clinical interven�on opportuni�es and reduc�on of mortality and morbidity. It will also accelerate our “data as an asset” approach and the use of our proprietary AI to assist in analysis and in the future, become integrated into our product.

If we are to con�nue to be a leader in the space, we have to make this a strength and a key differen�ator from compe�tors in the USA in par�cular. In Australia, developing the appropriate partnerships which we are presently scoping and discussing, will allow us access to non-dilu�ve government grant funding and the R&D tax concession of 45% which we can’t immediately access due to the relevant business units being housed overseas. We have also recently applied for a major grant in the EU.

Service Providers

We are also in discussion with groups in the US and Australia about providing on ground support. For the implementa�on phase this is cri�cal, but we are also assessing solu�ons HeraMED can offer to par�cularly support clinics or employers to monitor or be the first line of contact for their mothers on the system ‘navigators’. Offering this service as part of HeraCARE for clinics is seen as a poten�al pathway to accelerate the onboarding on clinics on HeraCARE.

Advocacy Groups

We are in discussion with various midwifery and perinatal organisa�ons to become organisa�onal champions.

HeraMED Limited ACN 626 295 314
| A: Suite 4, Level 16, 55 Clarence Street SYDNEY NSW 2000

Target Markets Australia

Gold Coast Hospital

One of the most exci�ng partnerships currently underway within the business is at the Gold Coast, where

The pilot itself, is due to begin in the coming weeks for up to 90 pregnancies for a period of six to nine months;

with an objec�ve to evaluate clinical usability, pa�ent sa�sfac�on, value for money and economic analysis.

The Gold Coast hospital prides itself on its leadership in digital transforma�on under their ‘Digital 2024 (D24) strategic plan’ and it is therefore par�cularly pleasing that they have iden�fied several opportuni�es to collaborate on the development of innova�ve products and IP for use in a hospital and health service se�ng. As part of this, an Innova�on Collabora�on Deed and Project Agreement has been put in place.

Joondalup Health Campus (JHC)

We con�nue to assess the best pathway forward. There have been challenges created on both sides. Ramsay Health has made significant administra�ve and staff changes at Joondalup, and this has significantly impacted newer ini�a�ves that have come up for renewal in which HeraMED is caught. This has led to challenges finding common ground for a longer-term commercial agreement with JHC thus far, but we con�nue to work towards a solu�on that will benefit all par�es. Importantly HeraCARE con�nues to be supported by key leadership within the obstetrics department of JHC.

Pipeline

There are a number of commercial, collabora�ve, or pilot discussions taking place but two are nearing conclusion also in Australia. One is a large digital health pla�orm with a global footprint that works with health care providers including hospital, health service sectors to connect health informa�on, clinicians, and consumers, with clinical and administra�ve systems, health data analy�cs, popula�on health solu�ons, and informa�on exchange pla�orms to help providers to improve the quality, safety and efficiency of the healthcare they deliver. In the first stage, HeraMED will partner with them to deliver care in new ways through telehealth and connected maternity through their GPs networks, represen�ng about 50% of Australian GPs. The second group leverages clinical, educa�on and technological capabili�es to deliver innova�ve solu�ons to the primary care system. They work directly with Government, academia, industry, and local health networks. HeraMED is looking at a new user-case in rural remote obstetric-GPs clinics and care star�ng in SA. Both groups offer access and scale to a large propor�on of GPs in the country.

there has been excellent progress across all fronts for the upcoming clinical trial of HeraCARE. I have been

working closely with HeraMED Execu�ve Vice President, ANZ, Anoushka Gungadin on this partnership and I

am so encouraged by the overwhelming level of resourcing that they are applying to not only ensuring a

successful pilot but the longer-term success.

Progress has been made across clinical, technology integra�on and IT, workflow integra�on and project

management and pregnant women are currently being signed up.

HeraMED Limited ACN 626 295 314
| A: Suite 4, Level 16, 55 Clarence Street SYDNEY NSW 2000

USA

I am delighted with the progress being made under the leadership of Keith Koby in USA. While I’m conscious that we haven’t formerly announced any new trials, this in no way reflects the level of ac�vity and I’m delighted with progress across several different opportuni�es.

Talks are underway with some of the largest and most pres�gious hospitals across the country and with the new appointments announced in July, the level of new business ac�vity is excellent and the interest in our pla�orm has grown significantly, in part driven I’m sure, by the heightened awareness around the maternity crisis.

Discussions are progressing with one such hospital on the East Coast, servicing approximately 5,000 pregnancies annually, on the East Coast. In this case, the local Government is funding the trial to reduce the impact of the maternity desert on their local communi�es.

Furthermore, there are well advanced discussions with leading groups across each customer ver�cal. Behind the abovemen�oned hospital others con�nue to progress but we are also advancing discussions with major digital health pla�orms, insurers, numerous clinics and world renown universi�es and research hospitals. The breadth of different organisa�ons interested in HeraCARE con�nues to provide confidence as to its value proposi�on. Reinforcing this is the mee�ng Keith held recently with the CEO of one of the largest global diagnos�cs companies. There was a small group chosen by the Execu�ve leadership and Keith enjoyed a one-on-one mee�ng with the CEO. This organisa�on is evalua�ng the HeraCARE pla�orm as part of its ‘Direct to Customer’ ini�a�ve. A second mee�ng is currently being planned. Regardless of the outcome, the poten�al role of HeraMED in to-home and consumer has been validated and reveals the changes occurring in the USA healthcare system that are driven by private and government ini�a�ves.

e-Lōvu

e-Lōvu Health has now signed up six clinics in USA with a total audience of 3,600 pregnancies. 5 of these clinics have been signed since June, with approximately 150 mothers onboarded since July. This progress has demonstrated the faster sales cycle associated with smaller private clinics. Our ini�al 12-month agreement is reaching its term and we have agreed to extend the current term un�l year end, but we con�nue to engage with e-Lōvu on how best to broaden the commercial rela�onship. e-lōvu have commited to purchase 150 units that are ready for shipment in November. Further updates on these discussions will be provided in due course.

Next six months

Strengthened commercialisation team in USA gaining traction

1. Execute on near term pipeline,

2. Con�nue to build out what HeraCARE can offer with strategic partners to ensure this is the

In closing we have three core priori�es, over the next six months,

solu�on to become the new standard of care in pregnancy, and3. Focus on shortening the sales cycle and delivering more deployments of HeraCARE faster.

HeraMED Limited ACN 626 295 314
| A: Suite 4, Level 16, 55 Clarence Street SYDNEY NSW 2000

In conclusion, there is a ‘hive’ of ac�vity in both our target geographies, and I am personally taking responsibility for ensuring our sales and marke�ng is the best it can be.

Since incep�on, the Company has accumulated an excellent repository of data which is proving to be increasingly to a range of health providers. We are seeking to capitalize on this rich data and will update you the shareholders in due course.

I would like to remind you our shareholders the HeraMED Purpose which is:

We are here to reimagine the way maternitycare is delivered and experienced for pregnant people, their support teams, and their care companions worldwide.

And our mission which guides us every day is:

To improve maternal health equity and access to quality perinatal care for expectant moms everywhere.

Investor Webinar

On Monday, 30th October at 9:30am, myself, Anoushka Gungadin and HeraMED’s President of North America Keith Koby will host an Investor Webinar to provide investors with an opportunity to hear more about about our progress and to ask ques�ons.

To atend the webinar, please register using the following link:

https://us06web.zoom.us/webinar/register/WN_xW17uVyVSx-Pq7PKPc5gwA

Thank you for your ongoing support. Yours sincerely,

Dr Ron Weinberger

Executive Chairman HeraMED Limited
e. [email protected]