cantechletter.com Healthcare AI HEALWELL AI has gotten 2 recent articles posted on cantechletter.com . The mission statement in here is very similar to Think - "“The company’s mission is preventative care, leveraging technology to identify at-risk patients and drive better healthcare outcomes. Consider HEALWELL is the resurrection of MCI who failed , it might be argued HEALWELL is not alone in this scarcity value, and at half the price.
"HEALWELL is a unique growth opportunity at the intersection of healthcare and AI, offering scarcity value in the public markets."
HEALWELL AI wins “Buy” rating at Eight Capital
With new life breathed into it by Canadian healthcare giant WELL Health, HEALWELL AI (HEALWELL AI Stock Quote, Chart, News, Analysts, Financials TSX:AIDX) is a digital health stock investors should be buying, says Eight Capital analyst Christian Sgro.
In an report to clients October 17, the analyst initiated coverage of AIDX with a “Buy” rating and a one-year price target of $1.50, implying a return of 142 per cent at the time of publication.
“HEALWELL is a unique growth opportunity at the intersection of healthcare and AI, offering scarcity value in the public markets,” the analyst argued. “The company’s mission is preventative care, leveraging technology to identify at-risk patients and drive better healthcare outcomes. With material financial and strategic alignment with WELL Health (WELL-T, BUY, C$10.00 TP), we believe HEALWELL is in the early innings of a data-driven land-grab strategy in healthtech.”
Sgro thinks AIDX will post Adjusted EBITDA of negative $3.1-million on revenue of $12.8-million in fiscal 2024. He expects those numbers to improve to EBITDA of negative $300,000 on a topline of $18.1-million the following year.
The analyst says that while HEALWELL has a compelling platform of it own, the relationship with WELL Health is a distinguishing feature that provides a myriad of opportunities.
“WELL has restored HEALWELL’s financial standing and has a path to 40%+ economic and 80%+ voting control,” he noted. “We see WELL as a motivated partner in the interest of their own shareholders. This partnership has become a key competitive differentiator for HEALWELL in the company’s effort to drive value with scale. As noted above, a large problem for pharma, clinical trials, and ongoing development is the ability to onboard and engage physicians. As part of a strategic alliance agreement, HEALWELL has access to WELL’s network and data-lake of millions of unique patients’ anonymized healthcare data.
Sgro says this simple scale of what AIDX can do has expanded drastically.
“As we think of the opportunity in Canada, HEALWELL previously shared that the company had access to 3M+ patient records prior to the recent transactions with WELL. As physicians are onboarded onto the platform, we estimate this penetration can grow closer to a base of 7-10M unique patients, or a quarter of the country’s population. This is based on WELL’s tech-enabled provider network, where the company has stated that it supports more than one out of every four doctors in Canada.”
Disclosure: Nick Waddell owns shares of WELL Health and the company is an annual sponsor of Cantech Letter.
That’s the take from Raymond James analyst Michael W. Freeman, who on October 18 reviewed WELL’s latest news; a product called “WELL AI Decision Support” a collaboration between WELL and HEALWELL AI.
On October 18, WELL and HEALWELL AI announced a collaboration called “WELL AI DECISION SUPPORT”.
“We firmly believe the physician experience of the not-too-distant future will involve a number of safe, secure and helpful digital diagnostic tools that will better support health care providers in detecting acute and chronic diseases earlier,” said WELL CEO Hamed Shahbazi. “The launch of Well AI Decision Support perfectly aligns with our core strategy to empower health care providers with transformative technology, enhancing their capacity to improve patient outcomes and promote preventative health.”
The companies say the product, which they say was “rigorously” tested and developed by HEALWELL will lead to better and faster patient outcomes, particularly in the diagnosis of more than 100 complex or rare diseases.
The analyst says WELL is no pretender and this product will be an important one.
“WELL isn’t just dabbling in AI – it’s firmly in the game,” the analyst argued. “And, HEALWELL AI is integral to the strategy: Following the launch of WELL AI Voice in May—already active across WELL’s entire BC-based primary care network—WELL AI Decision Support is WELL’s second core AI offering to be rolled out, this time with the help of its strategic technology development partner, HEALWELL AI (previously MCI OneHealth). HEALWELL AI’s team of developers and data scientists are now fully and exclusively plugged into WELL’s vast database of electronic medical records (EMRs) and other data from WELL’s >5 mln annual patient visits, uniquely situating the companies with ample datasets to build, deploy, and dynamically upgrade powerful AI-driven healthcare tools across WELL’s international healthcare networks. WELL, and, importantly, its patient data, is now firmly in the AI game.
In a research update to clients October 18, Freeman maintained his “Outperform 2” rating on WELL.
The analyst thinks WELL will post Adjusted EBITDA of $127-million on revenue of $899-million in fiscal 2024.
“We believe WELL tapping HEALWELL’s team for the important job of putting its troves of patient data to work is a deft move, enabling WELL to focus on building profitable international practitioner networks vs. deploying resources toward internal algorithm development,” the analyst concluded. “We also see HEALWELL as a big winner in this arrangement, gaining exclusive access to what is likely Canada’s largest proprietary patient dataset and a neatly aligned, well-capitalized distribution/deployment partner. We like the outcome of this WELL x HEALWELL alliance, and will be following each company closely as they grow their datasets, product offerings, and respective businesses. (NB: As part of the deal, WELL owns a call option for ~70% of HEALWELL.)”
Disclaimer: Nick Waddell owns shares of WELL Health and the company is an annual sponsor of Cantech Letter.