Translation: Original comment published in Finnish on 13/10/2021 at 9:00
Nightingale Health and Terveystalo launch a new well-being membership, which combines the results of Nightingale’s blood analysis and the well-being programs prepared by Terveystalo. In April 2021, Nightingale and Terveystalo announced their strategic partnership, and the new subscription service launched today is the first step of this collaboration. Nightingale’s press release on the topic is available here and Terveystalo’s release here.
The announced service includes regular blood sample measurements and digital weekly programs that encourage healthy lifestyle choices. The user of the service receives an individual health index and health measurements describing different health areas, such as heart age, fatty acid balance, inflammation, and cholesterol balance. The price of the Well-being Membership is around EUR 120 for 12 months and the launch offer includes 2 + 1 Nightingale measurements in Terveystalo’s laboratory and the digital service, including its well-being contents, provided through the Terveystalo app. Nightingale measurements are initially available in Southern Finland and the service will expand to Western Finland, Central Finland and Northern Finland during fall.
The launch was in line with the original schedule (fall 2021) as we expected and is part of the strategic partnership between Nightingale and Terveystalo that continues until 2025. With this launch, Nightingale takes an important step in launching a business in line with its vision, where its blood analysis and ability to identify disease risks are combined with disease prevention measures and services. This is an opening move for building these services, which we initially see benefiting future service development in the Nightingale and Terveystalo partnership especially through collected customer experiences.
The launch of the service is naturally an important step toward the commercialization of Nightingale’s technology, but the release does not change our view. We expect that in its initial stages the service will only generate limited revenue and Nightingale still has a long road ahead in building large-scale business around its technology. We will gradually gain more visibility into the formation of this business over the next few years.
One of the points in Terveystalo's strategy is to utilize pricing packages that are familiar from other consumer sectors. The service now being launched is the first step toward a fixed-price service for consumers, where the interest of both the service provider and consumer is to prevent diseases. Introducing Nightingale's service exclusively on Terveystalo's app also brings the company a clear differentiating factor to its competitors, which may increase loyalty in using its other services as well. We believe, the partnership with Nightingale is low risk for Terveystalo and includes clear earnings potential. We do, however, not considered this potential in our Terveystalo estimates until we get more visibility into the popularity of the service.