The shift in the healthcare space over the past six months is perhaps the most striking of all for market participants, from a thematic standpoint. Make no mistake about it: necessity is the mother, father, grandparents, uncle, and aunt of the invention. When you really need it, it happens.
And that’s what we have in the healthcare space – a new landscape carved by necessity, giving rise to a far more streamlined consumer experience, finally harnessing decades of advances in other industries, long in the making. The result is a rapidly shifting picture that puts billions of dollars in flux. The pieces will land where they may. But we can draw several conclusions already: it’s going to be about data, communications, and service at the end of the day.
As such, we have a handful of interesting stocks to pursue as analytic subjects, including Teladoc Health Inc. (NYSE: TDOC), Progressive Care Inc. (OTC: RXMD), and Goodrx Holdings Inc. (NASDAQ: GDRX).
Teladoc Health Inc. (NYSE: TDOC) covers various clinical conditions, including non-critical, episodic care, chronic, and complicated cases like cancer and congestive heart failure, as well as offers telehealth solutions, expert medical services, behavioral health solutions, guidance and support, and platform and program services.
Its platform enables patients and providers to have an integrated smart user experience through mobile, Web, and phone-based accessed points.
Teladoc Health Inc. (NYSE: TDOC) also recently announced that it is providing free, 24/7 general medical telehealth visits to residents, first responders and others directly impacted by Hurricane Sally and the devastating floods that have affected the area as a result.
“Especially during this hurricane season, as communities are already navigating an active pandemic, we want to make sure that those who are faced with the devastation of natural disasters are keeping their health front and center and know how to get care,” said Dr. Lewis Levy, FACP, chief medical officer, Teladoc Health. “Virtual care is a proven solution that supports community health during these times, as residents from evacuated areas seek to stay healthy when healthcare facilities and providers may also possibly be affected and unable to meet all care needs.”
Even in light of this news, TDOC hasn’t really done much of anything over the past week, with shares logging no net movement over that period. Shares of the stock have powered higher over the past month, rallying roughly 11% in that time on strong overall action.
Teladoc Health Inc. (NYSE: TDOC) managed to rope in revenues totaling $241M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top-line growth of 85%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($1.3B against $123.5M).
Progressive Care Inc. (OTC: RXMD) is a recent upstart in the healthcare data analytics space, with the establishment of its ClearMetRx subsidiary, with has begun servicing a growing list of clients and working to expand the company’s rapidly growing 340B third-party administration segment. That pairs with the company’s recent acquisition in the telehealth space and its consistently strong performance as a pharmacy services player. It is also a strong play as a Covid-19 rapid result testing service provider.
In the big picture, this has been a strong fundamental growth story in the pharmacy services space. But the company has been making moves to potentially reprice its shares according to higher multiple, more scalable themes.
Progressive Care Inc (OTC: RXMD) recently announced its LOI to acquire MyApps Corp, a leading developer of healthcare software. The acquisition will reportedly include full ownership of the emerging telehealth service app CallingDr™.
According to the release, upon closing the acquisition, Progressive Care will begin to provide health IT, HIPAA-compliant software development, HL7 integrations, and virtual healthcare services on a business-to-business (B2B) basis to hundreds of clients spanning the global healthcare distribution landscape, delivering services directly to consumers and through channel partners.
MyApps software is currently used in hundreds of medical practices in multiple states, including gastrointestinal, internal medicine, psychiatry, pulmonology, cardiology as well as remote clinics and in-patient settings. Customers include single-physician clinics, multi-physician clinics, emergency room centers, nursing homes, and home health setups.
And the stock has been acting well over recent days, up to something like 4% in that time. RXMD shares have shown strong on a multi-month timeframe, with strong gains compared to its levels in March (+50%) and June (+15%).
Progressive Care Inc (OTC: RXMD) pulled in sales of $9.2M in its last reported quarterly financials, representing top line growth of 31.8%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($2.1M against $9.2M, respectively).
Goodrx Holdings Inc. (NASDAQ: GDRX) is the new special flavor in the pharmacy services space, recently pricing a 34.6M share IPO at $33/share well above the $24-28 expected range. Investors have flooded to the name and it’s important to appreciate that signal in the context of this larger bull market context.
The company bills itself as a prescription drug price comparison platform using data from local and mail-order pharmacies in the United States. It also provides pharmacy coupons to customers. It offers generic and brand name pricing; alerts clients on manufacturer co-pay cards, pharmacy discounts, and state discount programs; and provides tips on slashing drug prices. It provides prices of drugs in just about every major area of pharmaceutical need.
Goodrx Holdings Inc. (NASDAQ: GDRX) has a rare combination of high growth (57% revenue CAGR since 2016) and healthy EBITDA margins (~40%). In short, GDRX is a route to locate lower prices for prescription drugs. For that service, the company derives fees from partners PBMs when a consumer fills a prescription through its platform.
Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week.
Goodrx Holdings Inc. (NASDAQ: GDRX) managed to rope in revenues totaling $123.3M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top-line growth of 34.7%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($126.6M against $60M).
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