As it prepares to go public, telehealth company Amwell priced its stock late Tuesday. The company will offer 35 million shares of its class A common stock priced between $14 and $16 share, for a total of $490 million to $560 million.
The Boston-based company plans to be listed on the New York Stock Exchange under the ticker “AMWL.”
Last year, it reported $148.86 million in revenue, up 30.6% from 2018. It reported a net loss of $88.4 million, compared to a $52.3 million net loss in 2018.
Amwell is one of several telehealth companies that are currently looking to go public as interest in digital health has surged since the beginning of the Covid-19 pandemic. Competitor MDLive has said it plans to go public, and drug price comparison tool GoodRx — which also owns a telehealth business —
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
It also seems like Amwell is thinking more about telehealth as a broader platform, as indicated by a partnership it recently struck with Google. The tech company will buy $100 million of the Amwell’s class C common stock, and Amwell will use Google for its cloud services. They also plan to collaborate on technologies, such as a translation feature for telehealth appointments or automating patient intake forms.
Morgan Stanley, Goldman Sachs & Co. LLC and Piper Sandler will act as lead joint book-running managers for the proposed offering.
Photo credit: jxfzsy, Getty Images
