WELL Health’s CRH Medical Acquires New England Anesthesia Associates

WELL Health Technologies Corp (WELL) announced that it has recently completed a transaction to acquire an 85% stake in New England Anesthesia Associates (NEAA), effective May 1, 2021. NEAA provides Read More... The post WELL Health’s CRH Medical Acquires New England Anesthesia Associates appeared first on TipRanks Financial Blog.

WELL Health’s CRH Medical Acquires New England Anesthesia Associates

WELL Health Technologies Corp (WELL) announced that it has recently completed a transaction to acquire an 85% stake in New England Anesthesia Associates (NEAA), effective May 1, 2021. NEAA provides anesthesia services to an outpatient surgery center in Guilford, Connecticut, and other staffing services that serve the surrounding area.

WELL Health Chairman and CEO Hamed Shahbazi said, "We are very excited to complete the first acquisition by CRH after joining WELL just a couple of weeks ago. This acquisition is yet another validation of CRH's disciplined acquisition and partnership program, and it demonstrates WELL's commitment to continuing CRH's very successful and accretive capital allocation program, which aligns perfectly with WELL's own growth strategy.”

CRH Medical’s CEO Dr. Tushar Ramani added, "We are delighted to have completed this acquisition, which represents our initial expansion into Connecticut. This is our fourth transaction of 2021, and we now serve 73 ambulatory surgery centers across 16 states."

CRH paid approximately less than five times its trailing operating EBITDA to complete the transaction. The company expects the NEAA’s acquisition to be immediately accretive to its cash flows. (See WELL Health Technologies Corp stock analysis on TipRanks)

Two weeks ago, Echelon Wealth Partners analyst Rob Goff reiterated a Buy rating on the stock with a C$12.00 price target (65.5% upside potential).

Overall, WELL Health stock scores a Strong Buy consensus rating based on 7 Buys. The average analyst price target of C$11.00 implies an upside potential of about 51.7% to current levels. Shares have more than doubled in value over the last year.

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The post WELL Health’s CRH Medical Acquires New England Anesthesia Associates appeared first on TipRanks Financial Blog.

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Is Chemocentryx Stock a Buy Right Now? This Is What You Need to Know

Investing in biotechs is a risky business, something those backing Chemocentryx’ (CCXI) success know all too well following last week’s shenanigans. The stock started the week trading at $48.49 per Read More... The post Is Chemocentryx Stock a Buy Right Now? This Is What You Need to Know appeared first on TipRanks Financial Blog.

Is Chemocentryx Stock a Buy Right Now? This Is What You Need to Know

Investing in biotechs is a risky business, something those backing Chemocentryx’ () success know all too well following last week’s shenanigans.

The stock started the week trading at $48.49 per share. Heading off to the weekend, the shares were changing hands for a 78% discount - the result of two brutal sessions.

So, what happened? Tuesday saw the release of briefing documents from an advisory committee reviewing the application for avacopan, Chemocentryx’ autoimmune disease drug to treat anti-neutrophilic cytoplasmic autoantibody (ANCA)-vasculitis - a rare disorder which causes inflammation of small blood vessels. The documents showed there were reservations regarding the design of the main study. Following which, the shares tanked by 44%.

Then things got worse.

Following the advisory committee’s Thursday meeting, the shares nosedived by another 62%, after the committee voted 10-8 in favor of approval regarding the treatment’s key benefit/risk equation. There were other key questions for the panel to consider. One regarding whether the drug’s efficacy data was robust enough to support approval – here the panel was split 9 vs. 9. On the safety profile, the committee also voted 10-to-8 in favor.  

With the way the market reacted, you would think the drug was wholeheartedly rejected. That said, while the overall reaction was slightly positive, the level of skepticism was enough to scare off investors who are evidently less confident the drug will cut the mustard when the decisive FDA review comes around. A PDUFA date is slated for July 7. The FDA is not required to follow the advisory committee’s recommendation, but it often does so.

Investors’ lack of confidence is mirrored by Raymond James’ Steven Seedhouse, who now has “reduced conviction” the drug will make the grade. That’s not to say all hope is lost, because Seedhouse actually thinks that if approved, avacopan is a “blockbuster drug and will be adopted as standard of care in ANCA vasculitis.” It’s just that now its chances of success are akin to a “pure coin flip.”

“Avacopan should be approved and we think certain AdCom panelists were unreasonable and unprepared (e.g., wanted larger safety database, more trials, unrealistic trial designs for this serious and rare disease),” the analyst said. “But a 10-8 vote favoring avacopan on the key risk/benefit question (with one yes qualifying her answer as meaning yes in context of a confirmatory trial) informs our new coin flip model.”

While Seedhouse doesn’t alter the drug’s projected peak unadjusted U.S. sales of $1.9 billion, the analyst gives avacopan a 50% probability of success now compared to 100% beforehand.

To this end, Seedhouse rates CCXI an Outperform (i.e. Buy) along with a $51 price target. Investors stand to pocket a 365% gain, should the target be met. (To watch Seedhouse’ track record, )

Going by the rest of the Street’s take, there’s plenty of upside projected too – at $44.29, the average price target suggests one-year gains of 304%. Overall, the stock has a Moderate Buy consensus rating based on 4 Buys, 2 Holds and 1 Sell. (See CCXI stock analysis on TipRanks)

To find good ideas for biotech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post Is Chemocentryx Stock a Buy Right Now? This Is What You Need to Know appeared first on TipRanks Financial Blog.

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