- Kainos Group and InTouch Health have announced a partnership to develop a suite of innovative telehealth offerings with the potential to reshape care delivery in healthcare systems around the world. The InTouch Telehealth Network connects more than 1,500 hospital locations globally and over 4,500 physician specialists enabling urgent teleheath care. Over the InTouch platform, a stroke consultation is enabled every five minutes, touching the lives of nearly 100,000 stroke patients every year.

InTouch Health plans to transform healthcare delivery by using Kainos Evolve's Integrated Care Platform to power its next generation telehealth patient management solution to improve patient outcomes at lower costs

Through Kainos Evolve's relationship as an Apple mobility partner, InTouch customers will benefit from best-in-class mobile access to clinical information at the point of care. Using the Evolve platform will allow InTouch to deliver customisable patient-centric applications that can be integrated with hospital Electronic Health Record (EHR) systems and be easily modified or extended to accommodate the requirements of individual healthcare organisations using eForms and workflow. Under the terms of the five-year partnership agreement, Evolve will be deployed as a SaaS platform to support telehealth applications in some of the largest Integrated Delivery Networks (IDNs) in the United States.

Separately, Kainos issued a trading update for the year ending 31 March and says it expects results to be in-line with market forecasts.

In the public sector, Kainos continues to see an improvement in market conditions. This is expected to result in a further gradual increase in opportunities across government departments such as the Ministry of Justice, where Kainos is providing support for an ambitious reform programme, and at the Office of National Statistics (ONS), where the Company has recently been awarded a new contract to work jointly with the client to provide comprehensive registers to improve the quality and cost effectiveness of the 2021 UK census. The Company remains optimistic around the increasing drive for digitisation in the NHS and other government departments and believes that its Digital Services and Evolve divisions are well-placed to benefit from these positive market dynamics. Outside government, the Company is encouraged by opportunities in its Evolve and WorkSmart divisions, particularly in the US and mainland Europe, where it has established offices in Boston and Amsterdam. The Company's WorkSmart division is experiencing a growing pipeline of opportunities for both its services implementation business, largely centred in the UK and mainland Europe, and its SaaS-based automated testing product, Kainos Smart. At March 7, the Company had 56 customers using Kainos Smart, including Shire Pharmaceuticals and Mizuho Bank, and has recently won its first mainland European prime engagement contract in the Netherlands.

Transition to Evolve SaaS delivery model:

In Evolve, customers are showing a significantly greater interest in a SaaS delivery model rather than in the perpetual licence model currently offered. Recent SaaS wins include InTouch Health, a leading provider of telehealth solutions, which as separately announced today signed a five-year agreement to deploy the Evolve Integrated Care SaaS platform to support telehealth applications in over 1,500 hospitals in the US and Europe, and the recently announced partnership with Cirdan Imaging Limited, a privately-owned supplier of medical diagnostic hardware and software, which in February licenced the Evolve SaaS product for five years. In a landmark deal in the UK, Kainos Evolve has also been selected as a preferred supplier to provide the Evolve Integrated Care platform to a major Clinical Commissioning Group (CCG).

Such SaaS contracts provide Kainos with greater revenue visibility and more durable, longer-term client relationships. To capitalise on these and similar opportunities, the Company plans to invest further in both product development and sales and marketing. These two initiatives, particularly the transition to SaaS, while improving the quality of Evolve's future earnings, are however likely to have a short-term impact on Evolve's revenue, profits and cash generation in the financial year ending 31 March 2017. The Directors believe this change to the Evolve delivery model is in the best interests of the Company in maximising Evolve's market penetration.

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