new research

Doctor Care Anywhere (DOC).

A Better Service For All Stakeholders

· DOC is a UK-based telehealth company established to provide high quality, timely and efficient primary and secondary care services. It recently debuted on the ASX raising the equivalent of £35m at the IPO.

· DOC operates in a competitive market for virtual GP services in the UK, however, key features of the business model distinguish it from competitors. DOC is targeted to higher end corporate customers through a variety of channel partners which includes health insurers and large employers. The company is laser focussed on reducing the cost of care while maintaining a high quality service for patients. Revenues are driven by eligible lives covered, activations and consultation volumes.

· At the core of the company’s ability to achieve these outcomes is its proprietary electronic health record system. The platform allows for the seamless sharing of patient data which is fundamental not only to the quality of care, but also in facilitating an efficient service that minimises wasted effort – both from patients and providers alike. In addition the company participates in the revenue stream generated by thousands of referrals for downstream diagnostic services via its unique Internet Hospital. The service is popular with users most of whom are return customers. Doctor Care Anywhere has a net promoter score of 80.

· The business was founded by highly experienced practitioners from within the ranks of the NHS. The model has now been validated by numerous channel partners. DOC has immense short term growth prospect following an exponential increase in COVID driven demand for its services.

Investment view: Buy, Price target $1.95

· We initiate coverage with a Buy recommendation and price target of $1.95. The valuation is based on the blend of a DCF model and a capitalised earnings model which values the company on a 10x multiple of FY21 forecast revenues.

Disclosure: Bell Potter Securities acted as lead manager of the company’s 2020 IPO raising £35m and received fees for that service.