Renalytix Business Update

August 17, 2022

Based on recently secured private payer and Medicaid insurance coverage contracts for KidneyIntelX, Renalytix plc is disclosing that the upper Midwest region of the United States, and specifically Illinois and Iowa, are now primary commercial expansion markets.  Private insurance coverage contracts secured and effective during the quarter ending September 30, 2022 include Blue Cross Blue Shield Illinois (estimated over 8 million covered lives) and Molina Healthcare Illinois (estimated 0.5 million covered lives). This complements coverage already secured with Wellmark Blue Cross Blue Shield in Iowa and South Dakota (estimated 2.1 million covered lives). Additionally, Renalytix has contracted with Illinois Medicaid as a provider for their program. Illinois Medicaid is estimated to provide medical insurance to over 20% of (or 3.3 million) Illinois residents and the contracts with BCBS and Molina provide insurance coverage for a significant proportion of that population. Illinois will now play a critical part in the KidneyIntelX health equity strategy to help drive down disparities in community care for individuals with diabetes and kidney disease.

With clarity on comprehensive insurance coverage now emerging on a region-by-region basis, the Company has taken steps in the current quarter ending September 30, 2022 to focus operating resources on near-term revenue opportunities, such as those disclosed above, and also reduce cash expenditure.

The Company has already executed changes designed to yield over $12 million in annual savings in fiscal 2023, with more in process. Full effects of cash burn-rate reduction are expected to be realized in the fiscal second and third quarters ending December 30, 2022 and March 31, 2023, respectively. A regional commercial focus dictated by growing insurance payer coverage also complements efforts to introduce KidneyIntelX testing through the seven Veterans Health Administration Centers serving Illinois and Iowa.  Renalytix previously contracted with the US Government under a General Service Administration contract for up to 10 years. The contract allows Renalytix to provide KidneyIntelX testing to any of the 140 U.S. government departments, agencies and affiliates offering healthcare services. Under the contract KidneyIntelX pricing was set at $950 per reportable result.

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The person responsible for arranging for the release of this announcement on behalf of Renalytix is James McCullough, CEO.