16 Dec Conversion Labs – Riding the Wave of Telehealth Medicine’s Surging Popularity
Conversion Labs, Inc. (NASDAQ: CVLB) a leading direct-to-customer pharmacy and wellness brand, announced the launch of a new telehealth platform named “Veritas MD “leveraging its existing telemedicine infrastructure. The platform is aimed at meeting the increasing demand of customer for medical advice, prescription and over-the-counter health products, delivered right to their doorsteps.
The Veritas MD platform uses its existing telehealth platform to combine patient electronic records with healthcare providers and includes an extensive physician network spread over 50 states. In addition the Company has a leading online pharmacy, an in-house product development lab and a high-performance marketing team that is committed to delivering excellence in healthcare to its patients.
Justin Schreiber, president and CEO of Conversion Labs, commented
“Our official launch of Veritas MD represents the culmination of years of development by experts in technology, medicine, and regulatory affairs. Veritas MD revolutionizes the way people gain access to medical care and medications in this new post-COVID world, particularly where convenience, affordability and health security have become paramount.”
Veritas MD will enable the company to scale its operations and transform the speed of its operations. The platform will help the Company achieve faster turnarounds and lower cost due to the enhanced scale of operations and migrate from a third-party system. In addition, its video-powered mobile interface offers a far greater user experience and quality of care, to both the patients as well as the doctors.
The Company is gearing up for the impeding launch of Nava MD, an online teledermatology and over-the-counter skincare brand that is seeking to replicate the success of its other popular brands namely Rex MD and Shapiro MD.
Conversion Labs Inc (NASDAQ: CVLB)
Market Cap: $160.17M; Current Share Price: 7.63 USD
Data by YCharts
The U.S Healthcare system is estimated to be a $3.2 trillion market comprising of various stakeholders such as hospitals, insurance companies, medical equipment suppliers and pharmacies to name a few. The world is moving towards digitization at a fast pace, and healthcare is one industry where online services are making swift inroads, owing to their promise of convenience, transparency and cost–efficiency.
Online medical consultation is set to dominate the healthcare e-commerce segment in the coming years according to a report by adroit market research, which estimates that the Global healthcare e-commerce market will be worth over USD 435.8 billion by 2025. The growth in this sector will primarily be fuelled by an increase in geriatric population, rise in lifestyle related diseases such as diabetes, the advent of the Smartphone, the increasing internet penetration even in developing countries and efforts by governments to increase awareness and provide inclusive healthcare.
The conventional healthcare system is plagued by issues such as lack of transparency leading to high cost of treatments. The conventional approach is centred on volume based care, leading to the prescription of unnecessary testing procedures, which further escalates the cost of treatment. The Insurance providers wield undue negotiating power with hospitals and other service providers, driving the costs further up. There has also been a rise in out of pocket expenses that a patient has to shell out and growing high deductible health plans (HDHP), which makes a customer price conscious and wary of approaching treatment providers, which in turn has a negative impact on the growth of the industry.
From a Hospital or Healthcare administrator point of view, the conventional approach to medical consultation results in a high administrative cost burden, by having to establish and maintain a whole setup dedicated to processing insurance claims and follow ups. In addition a typical claim processing and settlement takes over 27 to 90 days for hospitals and service providers and sometimes even results in bad debts. The inordinate delay in claim settlement can affect the quality of healthcare.
The emergence of online healthcare service providers has revolutionised the delivery of medical care not only for the patients but also for the hospitals and other service providers. The portals offer numerous advantages such as the ability to choose a particular healthcare provider, allowing patients to compare services and prices, offer a completely transparent and upfront billing system and consolidate information and billing details in one place.
The healthcare system is now moving from a volume-based approach to a value-based treatment approach, with focus on offering customized, preventive medication to patients, all from the convenience of their homes.
Conversion labs is leveraging its expertise in direct-to-customer marketing to provide access to prescription medicines and OTC products with primary focus on patients convenience, affordability and speed of execution. The platform has board certified physicians who can provide expert evaluation and appropriate treatment virtually, across 50 states in the U.S.
The Company is currently marketing Shapiro MD; a line of hair loss treatment products for both male and females that consists of a DHT blocking system, FDA approved minoxidil, FDA-cleared laser treatment cap, prescription oral medications, and compounded topical drugs. The product is sold directly to the customer through their website and also has the option of a free consultation with a physician. In addition they have also received a 510k approval from the FDA in Q1 of 2020, for a medical device that uses low-light laser therapy to regrow hair, namely Shapiro MD Laser Therapy System. The Company is preparing to launch a Teledermatology and skincare service shortly.
Conversion’s other brands include REX MD, a platform that offers discrete virtual consultations which are affordable and personalized for Men’s health issues. SOS RX that intends to help customers deal with unexpected medical scenarios such as nuclear incidents or terrorism, bioterrorism, flu epidemics, and international travel has currently been put on hold and is likely to resume its operations in Q2,2021. The Company also owns 51 percent of PDF Simpli, a SaaS product that facilitates the editing, converting, compressing, splitting, or compressing PDF files.
Veritas MD offers a seamless integration between doctors, patients and pharmacies, by removing middlemen and other bottlenecks that make the whole process of delivery of healthcare complicated and expensive. The platform helps reduce the time needed for accessing quality healthcare and provides greater convenience.
– COVID-19 has caused severe limitations and challenges in the delivery of healthcare. The added pressure of lockdowns and social distancing has made physical visits to the clinic a cumbersome process that involves an inordinate amount of time and effort. Veritas MD can provide a comprehensive experience by bringing together the patient, their records, consultations, prescription fulfilment and follow-up care onto one single platform, which a customer can easily access at the click of a button.
– Telemedicine is poised to be the future of healthcare with over 70 percent of retail prescription drugs shifting online within the next 7 years according to Alliance Bernstein. On the other hand the global telemedicine market is expected to reach USD 191.7 billion by 2025, growing at a CAGR of 37.7 percent, from USD 38.7 billion in 2020 as per a report by Markets and Markets. Veritas MD being one of the first-movers in the telemedicine and online pharmacy industry has an advantage over its competitors.
– The sudden shift and dependence on online consultations owing to COVID-19 have caught many companies unawares. While building an infrastructure that can provide a safe, reliable and cost-effective experience for the patient and healthcare provider involves time and money, Platforms such as Veritas MD that have already built an impressive telehealth infrastructure that provides scalability and agility have a great chance of capitalizing on the opportunity.
-The Company’s brands are growing rapidly, with its Sales Accelerating from Expecting $12.5M in 2019, to an expected $40M+ in 2020 as per the Company. As per its Q3, 2020 financial results, its Annual recurring revenue (ARR) grew by $15.8 million or 458% compared to September 2019. This shows the potential for growth and expansion that the brands can achieve. The Company which Launched Rex MD, a men’s Telehealth brand in Q4 2019 is gearing up to launch NAVA MD in 2021, while re-launching SOS Rx in Q2,2021.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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