UpHealth (NYSE:UPH) announced recently that it has reached a deal to sell Innovations Group to Belmar Pharma Solutions for approximately $56 million. The news has sent UpHealth’s stock soaring by 11% premarket on Monday. The acquisition covers Innovations Group’s compounding pharmacy subsidiary, MedQuest Pharmacy, and marks a significant milestone in UpHealth’s strategy to integrate its telehealth, integrated care, and behavioral health businesses.
The sale of Innovations Group represents a key move in UpHealth’s strategy to focus on its core offerings, driving growth, and paying down its secured debt. In a statement, UpHealth CEO Sam Meckey said, “2023 is a recalibration year for UpHealth, and execution of our strategic vision is our top priority. We will use a substantial portion of the proceeds from this sale to invest in our core offerings to drive growth, but will also offer, in accordance with our indenture, to use a portion of the proceeds to pay down some portion of our secured debt.”
The sale is subject to customary closing conditions and is expected to close in May 2023. Belmar Pharma Solutions is a leading provider of pharmaceutical contract development and manufacturing services (CDMO), and this acquisition is expected to complement Belmar’s existing services.
UpHealth’s telehealth, integrated care, and behavioral health businesses have been growing rapidly, and the sale of Innovations Group will enable UpHealth to further focus on these core offerings. The company’s integrated care model is designed to improve patient outcomes while reducing healthcare costs, and its telehealth platform allows patients to access care from anywhere.
The COVID-19 pandemic has accelerated the adoption of telehealth services, and UpHealth has been at the forefront of this trend. The company’s platform has enabled healthcare providers to deliver care remotely, reducing the risk of infection while increasing access to care.
Overall, the sale of Innovations Group is a positive development for UpHealth, enabling the company to focus on its core offerings while reducing its debt. The company’s telehealth, integrated care, and behavioral health businesses are well-positioned to capitalize on the growing demand for remote healthcare services, and UpHealth’s strategic vision is geared towards driving growth in these areas.