INSUBCONTINENT EXCLUSIVE:
Livongo Health stock jumped over ten percent on a day that saw most exchanges tumble after a day of crazy volatility.
The digital
diagnostics and therapeutics company is benefiting from booming demand for digital health services as remote medicine takes center stage for
beleaguered health care providers looking to keep treating patients while also responding to the COVID-19 epidemic.
Livongo, a provider of
behavioral management treatments and diagnostic tools for chronic conditions including diabetes, hypertension, weight management, and mental
health, sits squarely in the center of current medical needs.
The company announced a revised preliminary guidance for its first quarter
2020 revenue to be in the range of $65.5 million to $66.5 million versus prior guidance of $60 million to $62 million according to the
company.
The better-than-expected results sent the stock surging in trading on Tuesday, jumping $3.07 per share to close at $33.16, a better
than ten percent gain even as the major indices fell in late trading.
&We began 2020 well positioned to pursue our mission of empowering
people with chronic conditions to live better and healthier lives, and now more than ever, our efforts are necessary to support our Members
and Clients through the COVID-19 pandemic,& said Zane Burke, Livongo chief executive, in a statement.
&Our record Client launches of over
620 in the first quarter and Member enrollment are ahead of expectations and we continue to see strong demand in our pipeline
Livongo is in the unique position of providing assistance to some of the most vulnerable populations, people with chronic conditions, and
according to last week CDC report, 78 percent of people who were admitted to the intensive care unit due to COVID-19 had at least one
pre-existing health condition.&
Since the COVID-19 outbreak began in late December, digital health startups have seen demand soar
Everything from telemedicine consultations to digital diagnostics and remote monitoring and triaging of health conditions has seen record
growth.
Livongo is an early, public, beneficiary of a trend that playing out in private startups as well
That reflected in recent rounds for telemedical startups like K Health, which raised $48 million in a Series C round
Or in the financing for the Seattle-based startup 98point6, which raised $43 million in a Series D funding round.
&Virtual care plays an
important part in enabling social distancing to help flatten the curve and slow the spread of COVID-19,& said Brad Younggren, MD, chief
medical officer of 98point6, in a statement.
