HeraMED (ASX:HMD) clears Phase 1 with Lee Health as Phase 2 sits weeks away

A 92% virtual adoption rate and an NPS of 75 hand HeraCARE its strongest US validation yet

HeraMED (ASX:HMD) has delivered the kind of pilot result that changes how investors should think about the company. Its six-month Phase 1 study with Lee Health, one of the largest health systems in Southwest Florida, has come back with numbers that clinical teams rarely produce on a first attempt.

The pilot tested HeraCARE as the backbone of a hybrid obstetrics model, mixing virtual visits with remote monitoring of fetal heart rate and blood pressure. Forty-four patients ran the full pathway. Virtual adoption hit 92%, likelihood to recommend hit 100%, and the remote monitoring device pulled an NPS of 75.

For a small-cap digital health name that spent much of 2025 rebuilding after a suspension and a A$2m placement, this is a materially different data point. Lee Health delivers 8,000 babies a year. If Phase 2 gets internal sign-off in the coming weeks, HeraMED moves from feasibility partner to potential operational vendor inside a top-ranked US maternity network.

Why the Lee Health numbers matter more than the average pilot press release

Most digital health pilots produce polite feedback and vague next steps. This one produced hard operational numbers. The modelled pathway compresses 15 traditional prenatal visits to 11, frees 3 to 5 appointment slots per patient, and creates roughly 32 additional prenatal slots inside the pilot cohort alone.

That last number is the one to focus on. Clinic capacity is the single biggest constraint in US obstetrics right now, and Lee Health has just modelled a way to unlock more of it without hiring. That is exactly the language a health system CFO wants to hear.

The skeptical read is that 44 patients is a small sample and modelled savings are not booked savings. Fair. But the pilot was designed as a business case evaluation, and Lee Health is now progressing internal sign-off for scale-up.

Phase 2 is the commercial hinge, and it is close

HeraMED has guided that Phase 2 approval is expected in the very near term. In practice that means the market gets a binary catalyst inside the next few weeks. A green light moves HeraCARE from pilot inside one Lee Health clinic to broader deployment across a system delivering 8,000 babies annually.

We think the commercial framing here matters. HeraMED sells a SaaS-style platform plus connected devices, so a Lee Health rollout would layer recurring software revenue on top of hardware sales. That is the mix a digital health investor actually wants to underwrite.

The risk is timing. Health system procurement moves slowly even after internal approval, and HeraMED still needs contract terms, pricing and deployment scope to land before any of this shows up in the P&L.

What this validation unlocks beyond Lee Health

HeraMED has previously worked with Mayo Clinic and Sheba Medical Centre, and more recently with Garmin on wearable integration. Lee Health is different because it is a full health system running a business case, not a research collaboration.

A Phase 1 result of this quality gives the sales team a reference site with real NPS scores and modelled financial outcomes. For a company with a market cap still measured in tens of millions, one more system win of this profile would meaningfully re-rate the story.

The Investors Takeaway for HeraMED

HeraMED has produced the strongest single validation event in its listed history. A top 1% US health system has run a six-month pilot, generated adoption and NPS numbers that clinicians brag about, and modelled operational savings a hospital CFO can act on.

The next few weeks decide whether that translates into a scale deployment or another polite pilot that goes nowhere. Investors who followed our previous coverage on stocksdownunder will remember this is a company that has had to rebuild credibility, and Phase 2 is where operational progress finally has to meet commercial reality.