WELL Health Technologies Corp T.WELL.DB

Primary Symbol: T.WELL Alternate Symbol(s): WHTCF

Healthcare

WELL Health Technologies Corp. is a practitioner-focused digital healthcare company. The Company develops technologies, services, and support available, which ensures healthcare providers are empowered to positively impact patient outcomes. Its business units include Canadian Patient Services, WELL Health USA Patient Services and SaaS and Technology Services. WELL Health USA Patient and Provider Services includes Primary Circle Medical, Primary WISP, Specialized CRH Medical, and Specialized Provider Staffing. Its healthcare and digital platform includes front and back-office management software applications that help physicians run and secure their practices. Its focused markets include the gastrointestinal market, women's health, primary care and mental health. Its solutions enable 34,000 healthcare providers between the United States and Canada and power owned and operated healthcare’s in Canada with 165 clinics supporting primary care, specialized care and diagnostic services.

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WELL Health Technologies Corp

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Post by retiredcfon Apr 17, 2024 8:55am

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Post# 35993363

RBC

On to more relevant info. GLTA

April 16, 2024

WELL Health Technologies Corp.
Purchases 10 primary care clinics from Shoppers Drug Mart

TSX: WELL | CAD 3.50 | Outperform | Price Target CAD 5.50

Sentiment: Positive

Our view: After market close today (4/16), WELL announced that it has entered into an agreement with Shoppers Drug Mart Inc. ("Shoppers") to acquire all of the primary care medical clinics operated by Shoppers under the name "The Health Clinic by Shoppers". The acquired clinics are expected to contribute ~$8MM in annualized revenue and will be acquired as part of WELL's Clinic Absorption program. While the press release did not discuss the acquisition price for these clinics, we note that the company is able to acquire loss making clinical assets with minimal investment under its absorption model. As a reminder, in 2023 WELL acquired five clinics generating more than ~$33MM in annualized revenues for a total consideration of less than $0.4MM under its Clinic Absorption program and are expected to contribute positive EBITDA in 2024. We view the acquisition positively as we expect the company to generate strong ROICs and IRRs over time as WELL transforms these clinics. Previously, WELL has successfully added >500bps in EBITDA margin, on average, to primary/Dx clinics post purchase. We reiterate our Outperform rating on the stock and continue to believe that the market is currently under-appreciating the long-term value creation opportunity in transforming CDN primary/ Dx care. Our work on the MCI/Manitoba clinic acquisitions suggest that WELL could generate ROIC of >30% in aggregate over time and an IRR of ~30% (see pages 20-21, here).

Absorption of 10 primary care clinics. The 10 clinics consist of four clinics in British Columbia and six in Ontario, with over 35 physicians on staff. Post-close, WELL will re-brand the acquired clinics under the WELL Clinic brand. WELL intends to enhance operational and service capabilities across the newly added clinics, through its Clinic Transformation Team. The company noted that it will focus on optimizing cost structures, integrating digital workflows, adding patient engagement technologies, and implementing advanced AI tools such as WELL AI Voice, WELL AI Inbox Admin, and WELL AI Decision Support systems. Additionally, WELL also intends to recruit more physicians at the acquired clinics.