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The Telehealth Revolution Readies for the Spotlight (LVGO, NXGN, RXMD, TDOC)

We’re never going back. The world, as it existed six months ago in the pre-pandemic reality, is gone. Forever. It’s not a temporary shift. It’s a transition that was baking in the over of culture, technology, and the economy for years. The pandemic provided an apt excuse for driving regulators and legislators over the cliff into a commitment to use “what’s possible” for “what’s needed”.

One of the most important facets of that transition is in the healthcare and comes in the form of an eruption of “Telehealth” value. That’s now a dominant and growing theme in the stock market that could accelerate as we enter this year’s cold and flu season, which is on our doorstep.

As such, we take a look here at a collection of interesting opportunities in the market that could provide investors with potential in that context, including: Livongo Health Inc (NASDAQ:LVGO), Nextgen Healthcare Inc (NASDAQ:NXGN), Progressive Care Inc. (OTCMKTS:RXMD), and Teladoc Health Inc (NYSE:TDOC).

 

Livongo Health Inc (NASDAQ:LVGO) has become one of the key go-to names in the telehealth space, providing an integrated suite of solutions for the healthcare industry in North America. Its solutions promote health behavior change based on real-time data capture supported by intuitive devices and insights driven by data science.

The company offers a platform that provides cellular-connected devices, supplies, informed coaching, data science-enabled insights, and facilitates access to medications. Its products include Livongo for diabetes, Livongo for hypertension, Livongo for prediabetes and weight management, and Livongo for behavioral health by myStrength.

Livongo Health Inc (NASDAQ:LVGO) and Teladoc Health (TDOC), the global leader in virtual care, recently announced that they have entered into a definitive merger agreement.

According to the release, 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.

Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week.

Livongo Health Inc (NASDAQ:LVGO) pulled in sales of $91.9M in its last reported quarterly financials, representing top line growth of 124.8%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($839.2M against $47.9M).

 

Nextgen Healthcare Inc (NASDAQ:NXGN) is another key player in the Telehealth space, offering NextGen Enterprise electronic health record (EHR), which stores and maintains clinical patient information; and a workflow module, prescription management, automatic document and letter generation, patient education, referral tracking, interfaces to billing and lab systems, physician alerts and reminders, and reporting and data analysis tools.

Its products also comprise NextGen Enterprise PM, a practice management (PM) solution; NextGen Office, a cloud based EHR and PM solution; NextGen Mobile; and NextGen Electronic Healthcare Transactions. In addition, it provides population health solutions, such as NextGen Population Health Analytics, NextGen Population Health Patient Care Management, and NextGen Population Health Performance Management; and patient engagement solutions comprising NextGen Patient Portal, NextGen Self Scheduling, NextGen Patient Pay, and NextGen Virtual Visits solutions.

Nextgen Healthcare Inc (NASDAQ:NXGN) recently announced the availability of the next generation of its behavioral health suite. Building upon an award-winning electronic health record (EHR) and practice management system, the NextGen Behavioral Health Suite is the industry’s only platform that integrates comprehensive physical, behavioral and oral health in one software solution.

“We chose the NextGen Behavioral Suite because it provides robust client results to boost whole-person care for our clients,” said Sherman Hayes, chief information officer for Geminus Corporation, a Regional Health Systems company. “Utilizing the platform has allowed us to broaden our outreach and services programs to deliver care to the community we serve.”

It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things.

Nextgen Healthcare Inc (NASDAQ:NXGN) pulled in sales of $130.9M in its last reported quarterly financials, representing top line growth of -0.7%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($200.4M against $138.5M).

 

Progressive Care Inc. (OTCMKTS:RXMD) is another player starting to emerge as a potential telemedicine and telehealth stand-out. The company operates a as “a personalized healthcare services and technology company”. Progressive Care has been riding a strong series of monthly and quarterly updates highlighted by big topline growth numbers in the regional pharmacy services space, but is now increasingly set to expand operations into telemedicine, data analytics, data management, and a range of scalable growth strategies to augment its core pharmacy operations in Florida.

The company 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.

Progressive Care Inc (OTCMKTS:RXMD) is on this list primarily because of the its most recent release, which was an announcement of an 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.

RXMD shares have shown strong gains compared to its levels in March (+50%) and June (+15%).

Progressive Care Inc (OTCMKTS:RXMD) managed to rope in revenues totaling $9.2M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 31.8%, as compared to year-ago data in comparable terms. In addition, the company has over $2 million in cash on hand.

 

Teladoc Health Inc (NYSE:TDOC) is a mainstay speculative play in the telehealth space. The company 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 Laura which is set to have significant impact across the Texas and Louisiana Coasts and up through Arkansas.

According to the release, individuals who have been displaced or who cannot access medical care as a result of the hurricane can seek treatment from a board-certified, state licensed physician for any non-emergency illness by calling Teladoc directly at 855-225-5032. With the COVID-19 pandemic presenting an additional health risk, its vital that those impacted know they have immediate access to care in their time of need.

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.

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).

Published by Benjamin Roussey

Benjamin Roussey is from Sacramento, California. He has two master’s degrees and served four years in the U.S. Navy. His bachelor’s degree is from CSUS (1999) where he was on a baseball pitching scholarship. His second master’s degree is an MBA in Global Management from the University of Phoenix (2006). He has worked for small businesses, public agencies, and large corporations. He has lived in Korea and Saudi Arabia where he was an ESL instructor. Benjamin spends his time in between Northern California and Cabo San Lucas, Mexico, committing himself to his craft of freelance and website writing. http://www.facebook.com/ben.rouss



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