Nightingale Health enters Middle East collaboration

Translation: Original published in Finnish on 1/27/2025 at 12:26 noon EET.

Nightingale has signed a pilot agreement and letter of intent with Enigma Genomics to use the company's Remote Health Check in a full-scale commercial operation for Enigma's clients in Saudi Arabia and the wider MENA region. The cooperation is a four-stage process: pilot, launch, sales expansion and full-scale commercial adoption. According to the company, preparations for the pilot phase will begin in early 2025, which could mean as soon as the next few weeks.

The service is a logical addition to Enigma's offering

According to the press release, Enigma aims to be a leader in personalized medicine in Saudi Arabia and the Middle East, transforming healthcare by providing AI-powered genetic analysis for diagnostics and research. Enigma provides genetic analysis directly to consumers and healthcare providers. Nightingale's blood analysis is, in our view, a logical complement to this offering, providing Enigma with a one-time genetic analysis service for sale alongside a recurring analysis of the impact of lifestyle and lifestyle changes on disease risk.

Only time will tell the commercial scale of the cooperation

The press release did not estimate the revenue impact of the collaboration. The use case for the service looks like a combination of individual test orders (we see lower potential) and possible routine use in health checks (higher potential), so its commercial significance will only become clear over time as the service gains traction. We estimate that, if successful, the collaboration will take at least one year to ramp, with the revenue impact of the agreement beginning in fiscal 2026 or 2027. Our forecasts already include significant revenue growth for the next few years, so this news does not put immediate pressure on them. Currently, the main forecast risks relate to the pace of progress of the numerous joint ventures Nightingale has won and their achievable commercial scale. In any case, the release supports our forecasts and is a further indication of the attractiveness of the company's service in the global healthcare diagnostics market. The partnership marks Nightingale's first entry into the clinical segment in the MENA region.