Amwell confidentially filed for an IPO after raising $194 in May, given the skyrocketing demand for remote healthcare.
Amwell, formerly known as American Well, is a leading telehealth platform in the United States and globally, connecting and enabling providers, insurers, patients, and innovators to deliver greater access to more affordable, higher quality care. It offers a single, comprehensive platform to support all telehealth needs from urgent to acute and post-acute care, as well as chronic care management and healthy living. The company powers telehealth solutions for over 240 health systems comprising 2,000 hospitals and 55 health plan partners with over 36,000 employers, reaching over 150 million lives.
The company confidentially filed for an IPO earlier this week. Goldman Sachs and Morgan Stanley would reportedly lead the deal. Any official statement is yet to be made by the company but the IPO could take place in September.
This seems like a good time for an IPO since more and more people are turning to telemedicine through phone calls and video chats. People are avoiding going to clinics to avoid risking exposure to the coronavirus. Amwell, specifically, has seen a 1,000% increase in video visits due to COVID-19, but it’s closer to 3,000% to 4,000% in some cases.
The public market investors are looking for opportunities to buy into the growth. Shares of one of its top rivals, Teladoc, are up 88% this year and 34% since the broader market peaked in February. Livongo, a provider of remote monitoring services, has more than doubled its stock price this year, while One Medical, which offers telehealth visits in addition to its physical clinics, is up 120% from its IPO price in January.
This news came after Amwell announced that it closed its Series C financing round, adding $194 million in funding. Many early investors and strategic partners participated in this round, including Allianz X and Takeda. The company stated that it will use significant parts of the funds to expand its investment in technology and services that make it easy, convenient and effective for doctors and patients to connect securely at scale.
As COVID-19 swept across the United States, Amwell has seen a significant expansion in usage of its core Amwell Platform. Amwell has seen growth in on-demand visits for COVID-19 symptoms and/or risk assessments. It has also seen a significantly higher scheduled visit volume, as providers seek to treat patients, especially the elderly or those with underlying health conditions, for prescription renewals, speciality visits, and regular primary care check-ins during State-issued “stay at home” orders.
“The past two months have accelerated telehealth by more than two years,” said Ido Schoenberg, CEO of Amwell, in a press release dated May 20, 2020, “We intend to build upon this momentum to transform healthcare with digital care delivery. Our strategic investors are providers, insurers, consumer gateways and healthcare innovators. Each of these partners plays a key role in creating a more interconnected digital healthcare ecosystem, where our mission is to deliver greater access to more affordable, high-quality care.”
Amwell has facilitated as many as 45,000 telehealth visits per day across the Amwell Platform. The number of Active Providers, clinicians who have completed at least one visit in the past year too, has risen significantly.