Telemedicine giant AmWell is looking to go public, following a surge in use amid the coronavirus, CNBC first reported. The company declined to comment on news of the IPO when MobiHealthNews reached out.
CNBC is reporting that the Boston-based company hired Goldman Sachs and Morgan Stanley to broker the deal, which is expected to take place in September.
This news comes only weeks after the company announced a $194 million Series C funding round led by Allianz X and Takeda – bringing the company’s funding pot to just over $640 million. At the time, the company said that the new funds were going to be used towards expanding its tech and services.
WHY IT MATTERS
AmWell will add to the growing trend of digital health companies filing for an IPO. After a multiyear lull, Rock Health reported six digital health IPOs in 2019. This included big names like Livongo, Health Catalyst and Peloton.
This year has also witnessed a steady stream of digital health companies filing to go public. In January, One Medical, a tech-enabled primary care provider, filed to go public with JP Morgan and Morgan Stanley as its lead bookrunning managers. Then in March, Accolade announced its plans to take its health-benefits-navigation business to public-investor markets.
THE LARGER TREND
One of AmWell’s biggest competitors is Teladoc, which went public in 2015. Recently, Teladoc has seen its numbers soar as a response to the coronavirus. In its latest Q1 earnings call, the company reported a 41% year-over-year revenue growth to $180.8 million. The company also reported a 92% increase in the number of users during that period.
The coronavirus has seen new efforts across the board from telehealth companies, including AmWell. In April the company launched its new virtual health offering geared towards small and medium physician practices with less than 100 providers.