Hello, everyone. Welcome to the presentation of the 2021 Financial Results for COGSAT. My name is Brad O'Connor. It's been my pleasure to be the CEO of COGSTAKE for more than 15 years, and I can tell you at no stage over that time have I been more excited about the future of COGSTAKE than I am right now. Joining me today is our CFO, Darren Watson.
Darren joined COGS8 about 6 months ago after more than 24 years at IBM. His most recent role of Darren Held, the position of Chief Operating Officer for IBM in Australia and New Zealand, which is a $3,000,000,000 company with more than 5,000 employees. He's been a great addition to our team. And so as we go through the presentation today, I think you'll find his fingerprints over the improved financial reporting that we'll take you through. Today's presentation includes forward looking statements, and therefore, I note our disclaimer stating that this presentation is general in nature.
I encourage all investors to consider your own investment objectives and also to review in detail the annual report that was lodged with the Australian Stock Exchange this morning. Following our presentation, we'll take Questions. If you do have a question, you have 2 ways in which to ask that. Firstly, you can type your question into the control panel and it will be read by a moderator. Or if you prefer, you can raise your hand by selecting the button that's highlighted with the arrow to have your line unmuted and you can ask your question yourself.
Of finally, I note that the slides are available under the handouts tab of the recording, and a recording of this presentation will be available later in the day. So to get started, Cogstack was found more than 20 years ago with a vision that we could our technology that will allow assessment of brain health anywhere and for any purpose. Importantly, with an aging population and increasing incidence of Alzheimer's disease and other dementias, COGS8's goal was to make assessment of cognition as simple and informative as taking your temperature. Our technology solutions are based on excellent science with over 500 peer review publications supporting the validity of our tests. To our proprietary technology, we've then added Scientific and Operational Expertise.
I note that Cogstat reports in U. S. Dollars and all of the numbers we take you through today are in U. S. Dollars.
COGSAT has 2 revenue streams. Our clinical trials business generated more than $28,700,000 of revenue in fiscal 2021. This is a project revenue model that provides us with really good forward visibility, predictability of our revenue. The length of clinical trial provides a great tale of revenue from which to build on year on year. And later on in today's presentation, Darren will be talking to you about that forward visibility and predictability that we have of our revenue.
Our healthcare model, which is the use of the COGS8 technology to measure brain health in the communities, our next horizon. Following the execution of the global license agreement with Eisai in October of 2020 and then the accelerated approval by the FDA of the first ever disease modifying treatment for Alzheimer's disease in June of 2021. The Healthcare segment is now delivering positive earnings contribution with the prospect of significant software revenue in coming years from that section of the business. Today, COGSTAKE is really well positioned. Gen.
Our technology solutions are well validated. We have excellent relationships with large pharmaceutical company customers. We have strong balance sheet and we're profitable and cash flow positive. And we're benefiting from external factors such as the release of the first ever Alzheimer's disease therapy and a push towards more virtual and telehealth solutions in Clinical Trials and we'll talk about both of those tailwinds as we go through the presentation. COGS8 began to gather momentum in fiscal year 2020 with the execution of our Japan agreement with Eisai early in that year and then finishing the year with a record level of clinical trial sales contracts.
That momentum continued into financial year 'twenty one. In our clinical trials business, we set a new record for clinical trial sales contracts, resulting in a new record for revenue backlog to be recognized in future periods. In our Healthcare business, we executed the global license agreement with Eisai, generating an upfront payment of $15,000,000 that was received in December of 2020. There are also external factors that had a positive impact on our momentum, and I will discuss those next. Finally financially, we've generated 40 4% revenue increase.
But just as important as that is we've shown financial leverage that our investors have been waiting to see. We recorded a profit before tax. We were cash flow positive. We had a strong balance sheet at the end of the financial year and we've begun financial year 'twenty two with really strong momentum continuing from that prior year. During 2021 financial year, there were 3 significant changes that fundamentally impact the commercial opportunity for COGSIGHT.
In June of 2020, Aisign, their development partner Biogen, announced that the FDA had given accelerated approval to the 1st ever disease modifying therapy for Alzheimer's disease. The FDA then followed that approval by providing 2 other investigational therapies, being Lilly's dinenumab and A size lukanumab with breakthrough therapy designation. We believe that these decisions will positively impact Cogstate's business in 2 ways. Firstly, we expect our clinical trials business will benefit from increased R and D spend in the area of Alzheimer's disease. And then secondly, our healthcare business will benefit from diagnosis and monitoring that are expected to be an important part of patient management following the approval of 1 or more therapies.
The second significant change was the announcement in October 2020 of our global license agreement with Eisai. Eisai are a world class partner and a great partner for COGSTA. The global agreement provides us the Opportunity to realize our initial vision of cognitive assessment forming an important part of regular health check out for everyone. Finally and perhaps just as significantly, we saw the pandemic caused a real increase in the adoption of remote assessment in clinical trials. Known as decentralized clinical trials or virtual trials.
The at home testing nature of such trials means that digital assessments have a real advantage when designing these trials. COGSTAID expects to benefit from an increased adoption of decentralized trial design in the coming periods. Continuing on that theme of growth, great momentum driven by an increase in R and D spend in Alzheimer's disease and the adoption of decentralized clinical trials. Yesterday, we announced a record start to fiscal 'twenty two with 35.4 million of clinical trials contracts executed since 1 July. Included in that total his one large Phase 3 clinical trial in Alzheimer's disease that is being designed to incorporate home based assessment as a key feature of that trial design.
CogState. We'll deliver our computerized assessments and we'll also provide telehealth assessments of other cognitive measures in that Phase III trial. That trial alone will generate approximately $6,000,000 of revenue in this current fiscal 'twenty two year and $8,000,000 of revenue in each of fiscal 'twenty three, 'twenty four and 'twenty five. I'm now going to hand over to Darren Watson, our CFO, and he's going to talk you through the 2021 Financial Results.
Thank you, Brad. So look, I'm very pleased to report a very strong financial performance for the financial year 2021, with the second half in particular a very strong performance for us. We delivered a record new contract signings year in clinical trials of $47,300,000 up 15% year to year on top of what was a record year in 2020. Alzheimer's continues to be a key source of that growth and represented 65% of our contract signings in 2021. The record signings combined with the addition of the 6 to 10 minuteimum royalties from the Eisai license agreement, which is now a contractual obligation following the FDA approval of Aduhelm, takes the future contracted revenue above 100,000,000 of Cognex, a growth of 151 percent from a year ago and is a record for COGSTA for future revenue under contract.
The consecutive years of record contract signings in clinical trials and the recognition of revenue from the Aesai agreement has resulted in revenue of $32,700,000 which is year to year growth the 44%, again, a record for COGSTA. Within that, the second half was $18,800,000 compared to first half of $13,900,000 illustrating the momentum within the business. Importantly, the revenue the growth in revenue has allowed us to better utilize the capacity across our business. And as a result, we've transitioned to positive profit before tax. The profit before tax was $5,800,000 and is marginally ahead of the top end of the range that we gave back in July, which was 5.2
of the Q2 of fiscal 2019. Again, it is important to
highlight the strong second half, with the second half profit of $6,200,000 compared to the loss that was reported for the first half of $400,000 Included in net profit before tax is a one off gain of the forgiveness of the U. S. PPP loan for $2,400,000 which is a U. S. Government support for COVID impact in 2020.
Excluding this one off game, together with the first half one off impact from advisor costs associated with the negotiation of the Eisai Global Licensing Agreement, the company. The underlying profit before tax was $3,900,000 Again, the second half, we've been able to return to improved utilization levels of our existing capacity, has delivered $3,800,000 compared to the first half of $100,000 As we turn to Page 10, it's important to point out the improvement in margins across the business, particularly the second half margins. Total gross contribution margin for the second half was almost 60 points, up significantly from the first half, taking the overall gross contribution margin for the year to almost 55 points. This is an improvement of more than 13 percentage points year to year and reflects the discipline we have applied to managing capacity, utilization and managing costs. The strong contribution margins are also reflected in the EBITDA margin, where for the second half, we were above 26 points And for the EBIT margin, where we hit 20 points for both of these, the margin improvement year to year is in excess of 20 points.
As I previously mentioned, we did benefit from a one off gain from the forgiveness of our U. S. PPP loan to the tune of 2,400,000 This is not included in EBITDA or EBIT, but does form part of the net profit before tax. We've provided an underlying profit before tax, which excludes this benefit. Chart 11 here details the reported results of underlying results after adjusting for the 2 non recurring items of the PPP line and the one off advisor charges of the Eisai agreement.
Turning now to the segments and starting with clinical trials. This is one of the benefit of strong new contract signings over recent years of the company's operations and the improved utilization of our capacity, particularly in the second half, have resulted in strong results for the year. Revenue growth of 36% and a growth in the gross contribution by almost 75% with gross margins being almost 50 Five Points in the second half. As I mentioned, improved utilization of our capacity and the strong software license contribution in the mix has resulted in particularly strong margin performance for the second half. Not only was revenue and profit strong, but the record new contract signings performance with Strong, contributing to revenue growth within the year, but also creating growth to the future contracted revenue.
As As you can see from the graph in the bottom right hand corner, we now have 8 consecutive quarters of new contract signings exceeding revenue of And with a strong start to the Q1 of 2022, we expect it will be 9 quarters as we exit this Q1. Moving to the Healthcare segment, strong revenue and gross contribution are largely attributable to the Eisai licensing agreement. As a reminder, for the Eisai Global Agreement, the $45,000,000 is being amortized over an 11 year period, $2,900,000 of revenue recognized in 2021 with the remaining $42,000,000 in the future contracted revenue. Contributions were strong across the year as we build up the team to both manage and support the commercial relationship that we have with Eisai. As we look at future contracted revenue, as of 1 July, we now have over $100,000,000 of future revenue under contract for the first time.
Obviously, we have now added that following the strong start to FY 'twenty two. In clinical trials, the future revenue was $58,000,000 at 1 July. Again, this has now improved following the more than $35,000,000 of net sales contracts executed in the 1st few weeks of the Q1 of financial year 2022. In healthcare, an additional $43,000,000 of contracted revenue represents the contracted minimum revenue of the Eisai agreements. In terms of the runoff of the backlog, we had almost $29,000,000 revenue under contract for the current financial year of 2022 at the start of this financial year.
As we announced yesterday, the contracts executed at the start of this year, we've added approximately $6,000,000 of contracted revenue to that starting position, taking our revenue under contract for this financial year approximately $35,000,000 at this time. Just as important as we look forward towards financial year 2023, We already had over $25,000,000 of revenue under contract at the start of financial year 2022 compared to just $5,000,000 this time a year ago. With the new contracts that we've executed so far this year, that financial year 'twenty three contracted revenue now exceeds over $30,000,000 As we look at what this means, To the right is a representation of how backlog revenue reflects in our actual revenue performance for a year. In 2021, for example, the backlog revenue at the start of the year was 54% of our full year revenue, meaning that we're able to add over $15,000,000 from our new contract signings during the year. This backlog coverage has ranged between 49% 54% over the last 5 years, with the exception of 2019, which was impacted by a number of trial terminations.
It is important to note that as the business continues to grow, we would Tethys backlog coverage to increase. In other words, in the future, a greater percentage of revenue will come from the amount contracted at the beginning of the year. Turning to cash flow, the strong revenue and profit performance together with the signing of the Eisai Global Agreement in the first half of twenty 21, has resulted in a strong cash flow performance. Net cash operating net operating cash flow was $16,100,000 for the year, which included the upfront receipt of the Eisai $13,800,000 on signing of the global licensing agreement. Adjusting for pass through charges, which is purely a timing difference for us, the net operating cash flow is a little stronger at $16,800,000 We also finished the year with $23,600,000 of cash or $22,400,000 of net cash Tify taking into account the cash held on behalf of customers for future pass through charges.
So as we sit here today, we have a very strong cash position the funders going forward. Back to you, Brad.
Thanks, Darren. So we're going to turn away now from the financial statements, but looking some more depth at some of these other factors that are impacting our business going forward. The first of those is the release of the first ever disease modifying therapy for Alzheimer's disease. As we mentioned earlier in the presentation, just a few months ago in June, Aisai and their development partner Biogen announced that the first that the FDA had given accelerated approval to the 1st ever disease modifying therapy. The FDA then followed that up with by providing 2 other investigational therapies with breakthrough therapy designation.
That essentially means it Clear's the way or that makes it a little bit easier for them to interact with the FDA as they seek to get their drug approved. We believe that these decisions will positively impact on Cogstate's business in the coming years. And in fact, it's possible within the next 2 to 3 years, there might be a number of treatment options available for those who are suffering from Alzheimer's disease. And I think everyone understands this inherently that Alzheimer's disease as an insidious condition, early subtle signs of that occurring 10 or even 20 years before some of the more obvious effects. It's currently the 6 leading cause of death in the United States and expected to take more and more lives over the coming years.
So this is a big problem, and it's a problem that is worth solving. What we've seen in other indications following the approval of the first therapy of it actually results in an increase in R and D spend, and we expect that to continue in Alzheimer's disease. The graph here shows what happened in multiple sclerosis following the approval of the first interferon beta treatments in 1993, which set in motion a cycle of innovation that resulted in more than 20 different treatments being approved over subsequent years. And our expectation is that the level of R and D spend we will see going forward in Alzheimer's disease. Our agreement with pharmaceutical company ASI is critically important to our commercial plans.
We believe that our technology can play a really vital role as a low cost, easy to access, scientifically valid assessment of cognition. Those easy to use tests can really facilitate home based self assessment ALL Physician Assessment and Screening. He can provide a diagnostic support tool for physicians and can be helpful in monitoring response to therapy. Eisai has a really long and proud history in Alzheimer's disease dating back to the launch of the first symptomatic treatment called Aricept in 1997. With their financial interest in the approved treatment for Aduhelm as well as their considerable exposure to potential new treatment through their strong R and D pipeline in Alzheimer's disease.
Day of Significant Financial Interest in the Identification of the Very First Cognitive Changes that might be associated with Alzheimer's disease. So we think we've got a good partner. And the target market for our technology is not limited to those suffering from Alzheimer's disease. In fact, our target market is everyone who is worried about their memory as they age. And that's the really large market.
Over 320,000,000 people our over the age of 65 in just the 4 key markets that are identified in the agreement executed by COGSIGHT and Eisai. So this is a really significant opportunity that we hope will generate significant revenue in coming years. We do need to be realistic about time frames in terms of that revenue opportunity, with product only expected to come on to market in the United States in the coming months. And so the our revenue expectations in relation to fiscal 'twenty two are quite realistic and quite sensible. And I think the opportunity is for that is for substantial revenue comes a bit later in fiscal 'twenty three, 'twenty four, 'twenty five.
I want to talk now a little bit about decentralized clinical trials, which is a term that is probably new to a lot of people. Since the beginning of the pandemic, the clinical trials industry has seen an increase in demand for remote assessment. Decentralized clinical trials, also known as distributed or home based or silent trials, provider means of conducting a trial in the patient's home as compared to requiring a patient to come to a major clinical facility. Now This was a trend that was occurring pre pandemic. But like much technology adoption that has occurred as a result of the pandemic, this has gathered to speed.
And I want to be clear, we expect to see clinical trial sites continue as a really important part of the clinical trials industry. It is our expectation that more and more trial design will incorporate aspects of remote assessment because of the advantages that exist for both pharma or biotech company, but also the advantages for the patient, allowing trial designs that incorporate technology and therefore allowing the industry as a whole to bring new potential treatments to patients regardless of geography and other factors such as ethnicity and language spoken, which we see as major impediments to participation in clinical trials. CogState's computerized assessments are perfectly placed to benefit the adoption of the decentralized trial design. And we expect going forward for this to be another catalyst for COGSTAID's ability to increase our market share. I'm going to turn now to the outlook for financial year 'twenty two.
And we've provided this year some quite detailed guidance in respect to the financial year 'twenty two results. So in our clinical trials business, following the strong the announcement of the strong start to the 'twenty two year, We now have $30,500,000 of contracted revenue that we expect to be recognized in the 'twenty two financial year. This is Justine Clinical Trials. And to try and give you a sense of our revenue expectations beyond that contracted amount. I would note that in the last financial year from contracts executed 3 quarters 2 to 4 inclusive.
COGSIGHT was able to generate an additional $12,000,000 of revenue from that which was already contracted at 30 September. We expect that for fiscal 2022, our clinical trials margin to remain constant with financial year 2021 at approximately 54%. In our Healthcare business, we expect to recognize $4,200,000 of revenue from the ASI agreement and for that to contribute $2,500,000 to $3,000,000 We expect that our operating cost to be in the range of 31% to 33% of revenue, which is an improvement of 5 to 7 Points on fiscal 'twenty one, thereby resulting in EBIT margins of 15% to 18% of revenue. In terms of cash flow, we expect operating cash flow to be in the order of 30% to 35% of EBITDA, allowing for the amortization of the Eisai revenue that was received upfront as well as the amortization amount of capitalized software development. COGS.
So to summarize, COGSTAK is in a really strong position going into financial year 'twenty 2. Given our strong contracted revenue position and our strong start to the year with a record level of clinical trials contracts executing just the first few weeks of the year. We can state that we'll continue to grow revenue from the record that we set last year. And that like last year, the revenue growth will result in earnings growth and growth in our already strong cash position. Cogstate's scientifically validated technologies addressing a large market opportunity and we have significant external factors positively impacting on the business through the release of new treatment options for Alzheimer's disease and the adoption of decentralized clinical trials, both of which are positive for Colgate's business going forward.
Over the coming years, we expect to continue to grow our clinical trials business, which is now becoming a substantial business in its own right. Through our partnership with Eisai, we've established a foundation with which could potentially grow a significant opportunity in the healthcare market. The opportunity in Healthcare is expected to take a little time to establish significant revenue beyond those contracted minimums. But we are confident we have partnered well, and we're looking forward to product launch in the USA over the coming months. Overall, we're really well placed to grow COGSTA into a leading technology company that has potential to disrupt both the research and general practice medicine through technology solutions that make brain health assessment as simple as measuring your blood pressure.
With that, I'm going to conclude our prepared remarks and we'll take some questions. I want to encourage you to ask your questions. And as we went through before, there's a couple of different ways to do that.
Great. Thank you, Brad. So we'll start with those hands raised and then we'll move on to the questions in the questions panel. So the first hand raised here is Dennis Hund. I will unmute your line, Dennis, and you can go ahead with your question.
Just one second. Rachel, while you try and fix that technical glitch, perhaps you could read the one of the first submitted questions and I can answer that while you're trying to unmute Dennis. Brett, if I can
jump in. If I can jump in, we've just had some success now. Thanks very much for the opportunity. You mentioned that in the clinical trials business in FY 'twenty two. You expect the contribution margin to be 54% in line with the current year.
And instead of 58%, which is what you achieved in the second half, you mentioned that it's partly due to some technology investments. Can you just Talk a little about those technology investments. Will they be ongoing? For how long will they be impacting margins?
Yes, so I think, Dennis, I think the right way to look at this is we expect to be able to grow gross margins in the Crocrys business into future years. The decision we've made in respect to fiscal 'twenty two is you'll appreciate the size and scale of this business Expanding Rapidly. And what we want to do is ensure that we have the technical infrastructure, the operating processes that support a much larger business. We think that we can make those investments whilst maintaining margins and delivering good earnings growth and bottom line growth in fiscal 'twenty two. And so we're committing to make those Adjustments.
The benefit for shareholders for us making those investments now is we get to higher margins at a faster rate as we look forward to fiscal 'twenty three, 'twenty four, 'twenty five.
So will those investments be largely completed in FY 'twenty two or will they be ongoing into FY 'twenty three, etcetera?
Look, I think it's one of those things that you continue to improve and continuing to invest in. But I think by and large the margin impact will be fiscal 2022, which is not to say that we White B Continuing and Invest in our business in 'twenty three and 'twenty four, but I think the financial impact of that in terms of margins will be much lower as we push forward.
Okay. So we'll move on to questions panel. The first one is thanks to the COGS State team for their hard work and very good results. Where are you looking at COGS8 in the next 5 to 10 years?
It's an excellent question. So look, I think we're in a position now whereby we see significant growth opportunities in our clinical trials business, where we expect to Record. Very strong growth in bookings in fiscal 'twenty two that will deliver really strong Revenue Growth, and we see that continuing over the course of the next 5 years. Our belief is that R and D spend in Alzheimer's disease We'll Be Strong over that period of time. There will be increased adoption of digital assessments, digital native assessments, and we're really well positioned to benefit from that.
So 5 years from now, we expect to have a very strong a very profitable clinical trials business. Over the top of that, we layer the health care opportunity. And that's we need to be somewhat Constrained by Reality in terms of what is that opportunity. And we think that, that has the potential to be enormous, but there's a lot of rubber yet to hit the road in respect of that opportunity. We think we have a good technology solution.
We think we have an excellent partner. We think that there's an enormous market opportunity that's currently unmet. So we think we have the infrastructure in place to execute on that opportunity. BitTorrent 12 months from now. We'll have a much better sense of how that opportunity is playing out.
So I think that's the big unknown. But where in terms of our dreams, our beliefs, where our passion is driving us in terms of this business 5 years from now is that we have a really strong software business with software style margins in that healthcare part of the business that essentially layers on top of a very strong CRO Clinical Services style business in a growing niche opportunity, which is our clinical trials business.
Great. Thank you, Brad. So based on yesterday's updates, the large Phase III trial is worth USD 30,000,000 I. E. September quarter today, the company already executed the same amount of contracts as the whole of September 2020 quarter.
Is it fair to say that this momentum of Alzheimer's trial initiations is still ramping up?
Yes. So as I interpret that question, what we're saying is if we exclude the large Phase 3, there's a significant amount of work in the September quarter to date, and I think that's a fair assessment. We are seeing a lot of activity. We don't talk to sales pipeline and we don't do that deliberately because I think that can get a little misleading for investors. But our pipeline of opportunities is strong.
I think in terms of the R and D space specifically, what I can Zai as we are seeing pharmaceutical and biotech companies, 1, who have not being active in Alzheimer's disease, initiate activity in Alzheimer's disease. We are seeing smaller biotech companies who are focused on that Alzheimer's disease, be able to raise new capital and raise that at good valuations. All of these things a really positive in terms of increased R and D activity.
Great. Thank you. So you recently received an extremely large decentralized trial win from 1 company, but could you describe the pipeline of decentralized the trials. And are you seeing interest from 1 to 2 companies or several?
So I'll answer the second part of that question first. And We're certainly seeing opportunities from several companies. I want to be clear here that as a general statement, most of the trial designs that we're seeing now include some element, even if it's just a backup plan of what happens if we cannot get trial participants to site. So that's a really common and standard part of trial design that we're seeing. We there's a number of opportunities that we're pursuing currently in the decentralized space.
The very they're at an earlier stage. And I want to be clear here that they're not of the Sizemquantum of that one we've just executed recently. So these are smaller opportunities, but still good opportunities focused predominantly in Alzheimer's disease, but in other areas as well. We do think this is a significant change in the market. We think the trial the clinical trial site as a construct is ripe for disruption.
It's a general statement. It's slow and costly. And those are the general ingredients for areas that are ripe for disruption. And the conversations that we're having with pharma sponsors have changed from us needing to show that our digital solutions have better efficacy or better sensitivity than standard measures. 2 now being conversations around being able to say that our digital assessments are just as effective as the analog assessments update tend to be delivered remotely.
So it's a changing conversation that's really powerful in terms of the way we look at the market.
Great. So we have a couple of questions related to this topic. One is what are the current thoughts of the Board around the use of cash?
So it's an excellent question. And shareholders will appreciate that this is a new and as I like to call it an uptown problem for the COGS data that we do have a large cash balance, and our projection is to be cash flow positive going forward. Over the course of the next 12 months, the Board needs to establish a capital management plan. So we need to decide what it is we're going to do with that. We're not going to be rash in terms of that decision making.
We don't think we need to be. We think we can take Time to consider our options there. We will if the opportunity arose for to identify digestible add ons to our business that were both revenue and earnings accretive. We would look at those opportunities, but we're not chasing them hard. We think we have significant growth opportunities in our business that we've just presented to you.
And so if something made sense and then we could use our cash that way, we would consider it, but only do they extend it to both revenue and earnings accretive. Other than that, as I say, the Board will consider our capital management plan. And I think at some stage, over the course of the next 12 months, we'll be able to communicate that to shareholders.
Thank you. So another thing around competition. So are there any current competitors to COGS8? If not, how much of lead does COGS8 have over potential competitors?
So there's a number of competitors to COGSIGHT and to be honest, the biggest competitor to COGSIGHT is the use of standard measures of cognition. So a patient sitting in front of a doctor is the biggest competitor to COGS from a digital assessment point of view. Yes, there's competitors to COGSAT as well. The moats around our business, really relate to the scientific validation of our assessments, the long history we have, the strength of our commercial partnerships. I think our commercial partner with partnership with Eisai with respect to the healthcare business It's Essential that we have a commercial partner with a financial interest in identification of the earlier signs of memory impairment or cognitive impairment because they have other revenue lines associated or benefiting from the identification of those patients, I think puts us in a really strong position.
But we're very conscious of the fact that there will be competitors in the market as they always are when revenue opportunities arise that will attract competitors.
Great. So how common or uncommon is a large contact, dollars 10,000,000 or plus like the one you just signed for $30,000,000
So we see those opportunities of $10,000,000 or more certainly every year. And it has to be a key focus of our business development team, understanding that Not all revenue opportunities are created equal. We pride ourselves on our success with respect to winning opportunities, but we focus very Strongly on those larger opportunities for the obvious reason. COGSTA executed $47,000,000 worth of clinical trial sales contracts in fiscal 2021. So you only need 1 or 2 large opportunities to significantly impact our annual result.
As we Grow as a business. And as we continue to expand the level of bookings that we're achieving every year. Those opportunities both become more important, but also have less of an outperform impact. And so that's the job is to continue to identify those. And I think shareholders will appreciate that those larger opportunities involve a much larger team.
They involve the provision of a graded number of services. And it's one of those things that from a sales perspective, we're asked to demonstrate our ability to deliver on those large opportunities. So I think When you look at an opportunity like the one we recently announced, what it says is that a large pharmaceutical company is assessing COGS data as having the means and the capability of delivering on such a large opportunity. And as we continue to prove that we can do that, I think those opportunities come forward more often.
Great. Can you please talk about where you are with the development of your voice Based Biomarkers.
Yes, great question. And something we didn't talk about today, but I'd love to talk about. So We've developed a we have some background for people. We are taking one of our standard our computer based assessments called the International Shopping List Test, and we're turning that into a smartphone version of an assessment where the phone will read a list of words, a memory a list of words for you to remember. And then the participant We'll be asked to remember and repeat as many of those words that they can remember.
So this is using natural language processing within the smartphone to make that assessment. We think that's got great opportunity. That that development work was partially funded by a Diagnostics Accelerator Fund that was established by the Gates Foundation and others supporting that. So that technology is being produced with that support. We have a prototype of that now.
It's working well. So the smartphone version exists. It. We'll launch a test. You can take the test.
It will record the answers and give a result. What we need to do now is to scientifically validate of that recording exactly the same results as the original computer test is recording. And we expect to have that available into calendar 'twenty two year. So the development in summary, the development is going well. It's a really exciting opportunity for us, and we think it plays a really important role when you think about sort of home based or direct to consumer Healthcare Opportunities, so how do we identify people with those first signs of memory impairment and also really important within the construct of decentralized clinical trials and that home based assessment and trying to utilize very accessible technology solutions like a smartphone that delivers really highly scientifically valid cognitive assessments.
Thanks Brad. And I know we're to the top of the session, but I just wanted to squeeze in one more question. Have you seen any developments coming from the ERT partnership?
Yes, so a number of commercial opportunities that we're pursuing jointly there. We're very pleased with how that partnership is going. They're a large company and they've undergone their own internal they've had M and A. The business and they made an acquisition of the business and have been integrating that over the course of the 12 months. So that slowed us down somewhat, but a number of opportunities there, and we're very pleased with how that partnership is going.
I think we might leave it there at the end of the session. I want to thank everyone for your attendance and your interest. I remind everyone that a recording of this presentation will be available on the COGSTAK website in due course under the Investors tab. So thank you very much for your attendance.