Market Overview

Digital Medicines Value-Based Contract Focused on Improving Patient Outcomes Established Between Desert Oasis Healthcare and Proteus Digital Health®

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Desert Oasis Healthcare (DOHC) and Proteus Digital Health®, Inc.
announced today a multi-year collaboration established with a
value-based contract. Enabled by Digital Medicines, this collaboration
initiates a modern, "digital pathway" to improved medication adherence,
demonstrated improvements in clinical outcomes, and reductions in
hospital admissions for DOHC patients.

"We couldn't be more excited to finally have a proven, FDA approved way
to know when patients take their medications," said Brian Hodgkins
Pharm.D., Executive Vice President of Desert Oasis Healthcare. "It's
known that more than 50% of patients do not take their medications as
prescribed. Now DOHC, like other healthcare providers, can use data from
Digital Medicines to help patients get the real value out of their
prescriptions and meet their health goals."

Proteus has a panel of more than 20 Digital Medicines that treat
cardiovascular and metabolic diseases including hypertension and
diabetes being prescribed to patients in the United States. They are
prepared and delivered via specialty pharmacy services.

Through a value-based contract, Desert Oasis Healthcare joins a select
group of health systems in the U.S. who use Digital Medicines to focus
on improving outcomes in high-risk patients. Proteus has conducted
several clinical studies demonstrating the clinical and economic
benefits of using Digital Medicines to improve outcomes in these
patients, including a successful randomized control trial in patients
with uncontrolled hypertension and type 2 diabetes (J
Med Internet Res 2017;19(7):e246
).

"The value-based contract with Desert Oasis Healthcare means they reduce
hospital admissions for their patients through greater health outcomes
based on measured high levels of adherence to key cardiovascular and
metabolic Digital Medicines, as well as control of blood pressure and
hemoglobin A1c," said Joe McKenna, Proteus Vice President of Customer
Partnering. "The patient stays healthier and DOHC contains its costs
through fewer hospital admissions."

About Proteus Digital Health®

Proteus Digital Health is enabling a new category of pharmaceuticals:
Digital Medicines. These include widely used drugs, formulated so they
communicate when they have been ingested; a wearable patch that detects
medicines and captures physiologic response; mobile applications to
support patient self-care and physician decision-making; and data
analytics to serve the needs of health system managers. The company has
more than 450 issued patents that protect this enabling technology, and
regulatory clearances in the U.S., European Union and China.

Proteus Digital Health is privately held by investors that include
Carlyle, Essex Woodlands, Kaiser Permanente®, Medtronic®,
Novartis®, Otsuka, and ON Semiconductor®. Further
information is available at: www.proteus.com.
Connect with us on Twitter @ProteusDH.

About Desert Oasis Healthcare

Desert Oasis Healthcare (DOHC) was formed in 1981 as one of the first
medical groups in the desert communities of southern California. Desert
Oasis Healthcare is an affiliate of the Heritage Provider Network. These
advanced physician organization networks serve over 1 million
patient/members through integrated, population and value-based health
and payment programs. Over 30,000 physicians in medical groups and
independent practice associations (IPA's) in California, New York, and
Arizona provide organized, accessible, accountable care. The Heritage
Provider Network and its affiliates, founded in 1979 by Dr. Richard
Merkin, make up one of the nation's leading physician-driven healthcare
solutions organizations. Today, DOHC is continually advancing with
changes in the healthcare market, providing primary and immediate care,
home health, palliative care, and other services to more than 70,000
members/patients living in the greater Coachella Valley and the Morongo
Basin of Riverside and San Bernardino counties. Their multidisciplinary
and comprehensive care programs are committed to educating individuals
on preventative health care in their daily lives, reflected in the DOHC
motto, "Your Health. Your Life. Our Passion." For more information on
Desert Oasis visit www.mydohc.com.

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