The telehealth story is only growing stronger by the day. Earlier today, Teladoc Health announced it will acquire Livongo Health in a deal valued at $18.5 billion. “The deal would combine one of the leaders in the telehealth market with a growing digital health firm that targets chronic disease management. In a release, the companies said the combination represents a "transformational opportunity to improve the delivery, access and experience of healthcare for consumers around the world,” reported Fierce Healthcare.
Better, President Trump just signed an executive order to expand telehealth in rural areas. "Today I’m taking action to ensure telehealth is here to stay," President Trump said. "I signed executive order to make some of our regulatory reforms permanent.” Some of the top companies that could benefit include CloudMD Software & Services Inc. (TSXV:DOC) (OTCQB:DOCRF), Teladoc Health Inc. (NYSE:TDOC), CVS Health Corp. (NYSE:CVS), Livongo Health Inc. (NASDAQ:LVGO), and 1Life Healthcare Inc. (NASDAQ:ONEM).
CloudMD Software & Services Inc. (TSXV:DOC)(OTCQB:DOCRF) BREAKING NEWS: CloudMD Software & Services Inc., a telehealth company seeking to revolutionize the delivery of healthcare to patients, is pleased to announce that it has entered into a binding agreement to acquire 100% of a U.S. based medical clinic serving chronic care patients as a part of its broader strategy for entering the U.S. market with its comprehensive suite of telehealth products.
The acquisition is an important and strategic part of CloudMD’s cross-border expansion plan into the United States. One of the key goals for CloudMD with this acquisition is to start providing a single comprehensive stop for longitudinal healthcare for chronic and complex care patients in the U.S. These patients often have multiple concurrent diseases such as diabetes, hypertension, vascular and heart disease. The opportunity for expansion with this acquisition is significant, as in the U.S alone, 90% of the $3.5 Trillion spent annually on health care is spent on chronic pain and mental health issues (Source: CDC). CloudMD’s integrated telehealth technology will be used in the clinic practice to provide patient centric, continuity of care.
The clinic is managed by Dr. Fred Roh and Curtis Gibson. Dr. Roh has over 30 years’ experience in the U.S healthcare market having been founder of Healthcare Networks of America, LLC, a 15,000 member physician organization that provides services to 24 million patients across the U.S. Using CloudMD’s telehealth platform and virtual kiosk carts and kits, Dr. Roh will also help with expansion plans to build a network of telehealth powered satellite clinics covering large areas of underserviced areas across the U.S. (watch video of CloudMD virtual carts here).
Curtis Gibson oversees the management of the clinic in Mississippi and will be involved in expansion of CloudMD services within the southeastern U.S. Mr. Gibson has over 30 years’ experience in investment banking and business development for medical clinics.
Recently, the U.S. Trump Administration expressed their “unprecedented expansion of telemedicine during the pandemic represents a revolution in healthcare delivery, one to which the healthcare system has adapted quickly and effectively.”
Dr. Essam Hamza, CEO of CloudMD commented, “The COVID-19 pandemic has created a massive paradigm shift in how healthcare is delivered and has hyper-accelerated the adoption of telehealth by patients and health care providers – likely by 3 to 5 years. As a result, technology is being used to deliver high quality health care across North America – especially in rural areas where healthcare services are often limited or non-existent. This highly strategic purchase is only the first step of an aggressive expansion plan to offer a very unique hybrid care solution to a very vulnerable patient population.”
“We are very excited to work with CloudMD to expand the reach of consumer-centered virtual care, especially to the underserved areas of our country, starting in southeastern U.S. We believe we can help this technology become a fixture within medical practices, thereby making healthcare more accessible and cost-effective for patients, wherever they live,” said Dr. Fred Roh.
The acquisition is subject to customary closing conditions and receipt of TSX Venture exchange approval. Terms of the agreement will be disclosed upon signing of the definitive agreement. The Company anticipates closing of the acquisition on or before Sept 08, 2020.
Other related developments from around the markets include:
CVS Health Corp. (NYSE:CVS) announced operating results for the three months ended June 30, 2020. CVS Health President and CEO Larry J. Merlo stated, “We’re a health innovation company that is built to meet the evolving needs of the millions we serve every day. That’s been made clear as we continue to navigate the health, social and economic impacts of COVID-19. Our earnings in this environment demonstrate the strength of our strategy and the power of our diversified business model. We have a strong foundation of clinical expertise, data analytics and digital capabilities, and unmatched consumer and community reach which has allowed us to rapidly bring our strategy to life at an unprecedented time. The environment surrounding COVID-19 is accelerating our transformation, giving us new opportunities to demonstrate the power of our integrated offerings and the ability to deliver care to consumers in the community, in the home and in the palm of their hand which has never been more important. We have stayed true to our purpose of helping people on their path to better health, and we remain focused on creating value for all our stakeholders.”
Teladoc Health Inc. (NYSE:TDOC), the global leader in virtual care, and Livongo (LVGO), the leading Applied Health Signals company – today announced that they have entered into a definitive merger agreement. This merger represents a transformational opportunity to improve the delivery, access and experience of healthcare for consumers around the world. The highly complementary organizations will combine to create substantial value across the healthcare ecosystem, enabling clients everywhere to offer high quality, personalized, technology-enabled longitudinal care that improves outcomes and lowers costs across the full spectrum of health. Under the terms of the agreement, which has been unanimously approved by the Board of Directors of each company, each share of Livongo will be exchanged for 0.5920x shares of Teladoc Health plus cash consideration of $11.33 for each Livongo share, representing a value of $18.5 billion based on the closing price of Teladoc Health shares as of August 4, 2020. Upon completion of the merger, existing Teladoc Health shareholders will own approximately 58 percent and existing Livongo shareholders will own approximately 42 percent of the combined company.
Livongo Health Inc. (NASDAQ:LVGO), the leading Applied Health Signals company empowering people with chronic conditions to live better and healthier lives, announced financial results for its second quarter ended June 30, 2020. “Livongo entered 2020 with significant momentum and our strong results continued during the second quarter,” said Zane Burke, Chief Executive Officer of Livongo. “Innovative employers and health plans are choosing Livongo due to our leading Consumer Directed Virtual Care model and our ability to deliver significant clinical and financial improvements through a one-to-many approach. As we experience the further adoption of virtual health and remote monitoring technologies as the new standard of care, Livongo continues to build on its leadership position.”
1Life Healthcare Inc. (NASDAQ:ONEM) announced that its second quarter 2020 results will be released on Wednesday, August 12, 2020, after the close of the market. The company will host a conference call on the same day at 2:00 p.m. (PT) / 5:00 p.m. (ET) to discuss its financial results. A live audio webcast will be available online at https://investor.onemedical.com. The conference call can also be accessed by dialing 1-800-258-1651 for U.S. participants, or 1-612-979-9928 for international participants, and referencing conference ID 3165554. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.
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