Here’s why the Total Brain (ASX:TTB) share price is rocketing 58% today

Child wearing a space helmet and sitting with thumbs up next to two toy rockets on a desk with a computer, keyboard and mouse.

The Total Brain Ltd (ASX: TTB) share price is rebounding after hitting an all-time low of 9.4 cents on Friday. This comes after the digital mental health software-as-a-service (SaaS) company announced a data licensing agreement that has excited investors.

At the time of writing, Total Brain shares are surging a whopping 57.89% to 15 cents apiece.

Total Brain secures data licensing agreement

In a statement to the ASX, Total Brain advised it has entered into a perpetual, non-exclusive licence with Janssen Research & Development, LLC.

Founded in 2001, Janssen supports the pharmaceutical business of global healthcare behemoth, Johnson & Johnson.

Janssen specialises in researching, developing, and producing medicines for a range of diseases. This relates to areas such as cardiovascular and metabolism, immunology, infectious diseases and vaccines, neuroscience, oncology, and pulmonary hypertension.

Under the agreement, Janssen will have access to Total Brain’s iSPOT-D (International Study to Predict Optimized Treatment for Depression) research data. The licensing deal is effective immediately.

As such, Total Brain will receive a one-off licence fee of US$2.2 million within the next 90 days.

This will indeed boost the company’s cash runway significantly for research activities beyond the June 2022 quarter. Previously, Total Brain had $2.6 million at the end of September 2021.

More on Total Brain

Based in San Francisco and Sydney, Total Brain has developed the world’s first mental health self-monitoring and self-care platform.

Its SaaS platform has helped more than 1 million users scientifically measure and optimise their brain capacities while managing the risk of common mental conditions.

These benefits for employers, large organisations, and insurers have translated to productivity improvements and healthcare cost reduction.

Total Brain share price snapshot

Over the past 12 months, the Total Brain share price has lost around 52%. It is also down roughly 53% this year to date. It is a stark contrast from when the company’s shares reached a 52-week high of 50.5 cents in January 2021.

On valuation grounds, Total Brain presides a market capitalisation of about $17.34 million, with 133.39 million shares outstanding.

The post Here’s why the Total Brain (ASX:TTB) share price is rocketing 58% today appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned.

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