Boston Telemedicine Company Amwell Prices IPO At Up to $560 Million

Amwell, the Boston-based telemedicine company, is planning to go public as the demand for virtual healthcare offerings skyrockets amid the coronavirus pandemic.

The Motley Fool reported privatelyheld Amwell, a subsidiary of Aligned Telehealth Inc., filed its initial public offering with the Securities and Exchange Commission late Tuesday (Sept. 8).

The company has set a price of between $14 and $16 per share for its sale of 35 million shares. The proceeds would raise between $490 million and $560 million.

Amwell reported the cash will be used for working capital, to boost research and development and expand its sales team. If approved, its shares would be listed on the New York Stock Exchange under the “AMWL” ticker.

Amwell offers its telehealth services to more than 2,000 hospitals and 55 health plan plans with more than 36,000 employers, according to its website.

Since its launch in 2006, Amwell has made 5.6 million virtual visits by patients possible. More than 2.9 million of these visits took place from January through June.

Last month, Alphabet’s Google Cloud unit said it would invest $100 million into the Class C shares of Amwell. Alphabet’s investment is to be made concurrent with the IPO.

Amwell told CNBC that it has seen a 1,000 percent increase in telehealth visits, as high as 4,000 percent in some areas.
The IPO filing revealed the company’s revenue increased 77 percent in the first six months of this year to $122 million, up from $69 million in 2019.

Still, Amwell’s net losses reached $111 million in the first two quarters compared to $41 million in the same periods last year.

Aashima Gupta, Google Cloud’s director of global healthcare solutions, told CNBC the demand for telehealth is likely to continue because of the restrictions required to prevent the spread of COVID-19 and the improving reimbursement coverage.

Ryan Krause, vice president at Epic Systems Corp., a privately-held healthcare company in Wisconsin, told PYMNTS his company, which offered video visits with doctors long before the pandemic, had under 50,000 appointments in February. But that number jumped to 2.5 million by April.