IPO Analysis - DOCTOR CARE ANYWHERE GROUP PLC

From prospectus , Company website and Media articles

https://unauthorised investment advice/ipo-watch/ipo-watch-doctor-care-anywhere-set-to-join-the-asx-telehealth-ranks-next-month/

https://doctorcareanywhere.com/media/2671/doctorcare-anywhere-ipo-prospectus-asic.pdf

Doctor Care Anywhere Group PLC

SOI : 318.5 million
Number of Shares to be held by Existing Shareholders after the Offer : 190.8 million
Escrow : 149.5 Mil shares
Mcap : 254.8 million
EV : 172.4 million
Cash : 82.4 million
Indicative Enterprise Value/CY2020 Forecast Revenue : 8.7 X
Estimated Revenue for CY2020 : $19.77 Mil
IPO Price : 80c

Doctor Care Anywhere Group PLC is a UK-based telehealth company that is committed to delivering high-quality, effective and efficient care to its patients, whilst reducing the overall cost of providing clinical services. DOC utilises its relationships with health insurers, healthcare providers and corporate customers to connect with patients and deliver a range of telehealth services.

Doctor Care Anywhere Limited was founded in 2013 in London. In 2015, DOC entered into a strategic relationship with AXA PPP healthcare Group Limited, a company within the same group as the UK’s second largest private health insurer, to offer VGP services to AXA’s
customers under the Doctor @ Hand with Diagnostics brand. In January 2020, the relationship with AXA was further cemented when the two companies entered into a joint venture.

DOC operates in the telehealth industry. The telehealth market includes a number of segments and modes of delivery, including:

• Primary Care
• Secondary Care
• Remote Care

The global telehealth market is estimated to have been worth US$5.3 billion in 2019 and is forecast to reach US$14.9 billion in 2024, growing at a CAGR of 23.1%.DOC is currently focused on the UK Private Healthcare Market. Healthcare expenditure in the UK exceeded £214 billion and accounted for 10.0% of GDP in 2018, compared with 9.8% in 2017 and 6.9% in 1997. Healthcare spending has more than doubled between 1997 and 2018.














DOC’s business model is “business to business to consumer” (B2B2C). The Company’s commercialisation strategy is through channel relationships which the Company believes provides a lower cost of customer acquisition than a direct business to consumer (B2C) model.
DOC currently services over 1,500 corporate and SME2 clients which are accessed via its major channel relationships.
These channel relationships include world-leading companies such as AXA PPP healthcare Group Limited (AXA) (a UK subsidiary of AXA S.A., the world’s second largest insurance company), and HCA Healthcare UK (a part of HCA Healthcare Inc, one of the leading providers of healthcare in the US).

Revenue is primarily generated from the provision of services in connection with:

Virtual GP services which are charged either based on number of consultations performed (utilisation) or on a subscription basis
Internet Hospital services which include the initial consultation with referral for diagnostics, a specialist diagnostic review and a follow up consultation. These services are charged based on the number of consultations performed. DOC’s business model has also been structured to receive income from revenue generated from the Joint Venture with AXA from rebates on referred diagnostics.

Key Strengths

1) Telehealth Disruptor

• DOC’s platform is accessible by over 2 million lives
• Differentiated model that integrates primary and secondary healthcare
• Monthly consultations have grown from approximately 5,600 per month in December 2019 to over 20,000 a month today
• On 21 September DOC exceeded 1,100 consultations in a single day

2) Highly scalable tech platform

Technology platform provides joined up care across the patient journey via a single Electronic Health Record Modular and scalable technology platform Innovative business modelCompany employed GPs provide entry point to DOC’s treatment pathway via booking a virtual consultationGP’s are trained and guided by clinical decision support tools designed to ensure quality and consistency of carePatients incur no out of pocket costs for virtual GP services via DOC’s focus on the privately insured marketDOC aims to deliver its health insurance partners a reduction in claims costs of up to 20% by joining up primary and secondary care, and in doing so, reduce unnecessary appointments and diagnostic tests

3)Blue chip partners

AXA relationship provides foundation to scaleAXA have underwritten minimum GP consultations for next 12 months to September 2021Other corporate and hospital network partnerships highlight traction and growth potential

4) Strong growth in revenue and operating metrics

• 2020 pro-forma forecast revenue of £10.9m ( AUD 20 Mil ) , representing +91% growth YoY
• Pro-forma forecasts exclude £3m consideration received from AXA into expanded AXA JV partnership in early 2020
• Year on year growth up to an including September: Eligible lives +266%; Activated Lives +166%; Consultations +292%

Conclusion :

DOC is a telehealth company which DID NOT come into existence overnight due to COVID situation . It was founded in 2013 and was already making AUD 10 mil revenues before COVID pandemic situation occurred. It is a health sector disruptor in a true sense.

Looking at some recent IPOs CSX Cleanspace IPO trading at Mcap of 450 mil , ARX trading at 400 mil Mcap and 4DX at 380 mil Mcap .......DOC can trade at 400 to 500 mil Mcap ($1.25 to $1.60)

Though unfortunate but if lockdown in UK will continue further , DOC can be a massive beneficiary of this unfortunate event and might even exceed their Guidance of AUD 20 mil Revenues for CY2020.

IMO DOC should do very well at listing and will get good traction with some new contract wins.

It can also be a sweet take over target for health insurance giants Globally.

Listing date : 04/12/2020

GLTAH

ALL IMO

Please DYOR