WELL Health Technologies Corp T.WELL

RBC

[retiredcf]

April 30, 2024

WELL Health Technologies Corp.

5-yr collaboration with MSFT - Azure/OpenAI to help scale/security, especially with public systems

TSX: WELL | CAD 3.60 | Outperform | Price Target CAD 5.50

Sentiment: Positive

Our view: We view the announced collaboration with Microsoft positively and believe it will further solidify WELL's dominant position in the CDN market and more importantly, aid in the digitization and modernization of healthcare systems. This morning, WELL disclosed that it has entered into a five-year partnership with Microsoft to enhance its digital health platform. This collaboration will incorporate Microsoft's Azure and Azure OpenAI Service into WELL's offerings, aiming to significantly enhance their scalability and flexibility. The integration is also expected to improve cost efficiency of WELL's digital offerings, and guarantee enhanced data privacy and security. The collaboration will establish Microsoft as a go-to partner for WELL as the company continues to infuse generative AI technologies into its various digital health solutions.

Announces five-year agreement with Microsoft to accelerate healthcare's digital transformation. WELL announced a five-year agreement with Microsoft to accelerate the digital transformation of healthcare delivery, integrating Microsoft Cloud and AI capabilities with WELL's comprehensive digital health platform. This agreement is expected to result in: a) enhanced scalability of WELL's digital infrastructure, which is crucial as the company continues to grow and target large enterprise opportunities including in the public sector. Earlier this year, the company had announced the creation of a dedicated public sector group at WELL to help public health systems and related large enterprises with technology enablement (here); b) operational efficiencies by reducing complexities resulting in cost optimization; c) increased data privacy and security, the need for which has been highlighted by increased cybersecurity incidents at other organizations; d) leading innovation in healthcare solutions with the integration of Azure OpenAI Service.