Comment on STENOCARE Launching an IT-platform for Online Clinics

STENOCARE announced on May 30th that the company has developed an IT-platform that enables doctors to launch and operate Online Clinics. The first Online Clinic is expected to be launched in the UK during H2-23, pending regulatory approvals.

The new and innovative IT-platform enables prescribing doctors to launch and operate online clinics, wherever they are. This is expected to increase a doctor’s reach to patients across their geography and facilitates patients’ access to trained and experienced doctors and specialists, regardless of where they live within their country. The platform supports doctors in several ways:

  • Administration: patient booking, video consultation, patient journal
  • Knowledge: training, supervision by and ongoing access to the STENOCARE medical consultant and specialists
  • Ownership: STENOCARE will transfer ownership of the clinics to the doctors as the Online Clinic enters a more stable operation.
  • Cost efficiency: The platform helps doctors manage total costs and may limit cost per prescription to patients.
  • Compliance: The new IT-platform is GDPR compliant to protect the patient’s data.

The first use of the IT-platform is expected to be in a UK Online pain clinic, where the founders are Dr Ayman Eissa and STENOCARE, where it is expected that further doctors will join the clinic. STENOCARE has a commitment to the transfer of the ownership to the clinic doctors as the clinic reaches a stable operation. The clinic will have a specialty in pain management and treatment with both traditional medicine and medical cannabis.

“The European cannabis market is expected to grow strongly in the coming years with an expected market growth of 43 % (CAGR) until 2027, to reach a market value of EUR 2.2bn. At the same time The European Pain Society currently estimates that there are 100 million pain patients with legal access to medical cannabis in Europe, which implies that an even faster market growth could be possible. A threshold that holds the market growth back is that patients have limited access to prescribing doctors. Analyst Group believes that STENOCARE’s online platform can enable doctors to increase their geographical reach and thus increase patients access to medical cannabis, which can drive the growth of the medical cannabis market as well as STENOCARE’s sales growth.

Furthermore, as we have expressed in recent equity research reports, one important factor for STENOCARE to be able to scale up sales is to ensure the health care industry’s interest and thus that doctors are willing to prescribe medical cannabis to patients. We see the launch of the IT-platform as a step to further educate doctors and the industry about the benefits with medical cannabis, as they get access to supervision from a medical consultant and specialist, that can help doctors make informed decisions regarding how to treat patients.

The digital health market exploded during the corona pandemic as patients had limited access to meet doctors physically. According to Grand View Research, the global digital health market will grow at a CAGR of 18.6%. It is expected that most prescribing doctors within medical cannabis does not use online treatment today, hence, we see good opportunities for STENOCARE to penetrate the market with the platform. It generates several benefits for doctors such as that the geographical reach is expanded, automatic administration and access to a medical consultant from STENOCARE for supervision, which creates incentives for doctors to implement the platform. Moreover, STENOCARE is expected to be an owner in clinics and hence fund the start-up costs in regards to the implementation with the intention to transfer the ownership to the clinic doctors as the clinic reaches stable operations. This is expected to lower the barriers further for doctors to implement the platform and with more patients getting access to prescribing doctors, we expect a strong revenue growth for STENOCARE going forward”, says the analyst at Analyst Group covering STENOCARE.

How Analyst Group sees STENOCARE as an investment.

After entering three new markets in 2022, STENOCARE delivered products to a total of five countries during Q4-22, leading to net sales amounting to DKK 2.8m. This is the best revenues presented since Q1-19, before the resolved issues with STENOCARE’s former supplier, CannTrust, started. The Company now has 10 products approved in six countries, after entering Germany during 2023, and are expected to continue the geographical expansion. Operating on a market with strong expected growth due to further deregulations throughout Europe, Analyst Group believes that the Company is in a great position to deliver strong revenue growth going forward.