Amwell sells its Psychiatric Care business to Avel eCare, focusing on key growth initiatives and reiterating 2024 guidance.
Quiver AI Summary
Amwell has sold its Amwell Psychiatric Care (APC) business to Avel eCare for approximately $21 million in cash, aiming to concentrate on its key growth initiatives and enhance its digital care platform. The sale, which includes APC's technology and personnel, aligns with Amwell's strategy to increase efficiency and better meet client needs in virtual care. Amwell continues to support behavioral health services through its affiliated clinical partner, Amwell Medical Group, and reiterated its financial guidance for 2024, expecting revenue between $247 million and $252 million. Amwell's CEO, Ido Schoenberg, expressed confidence that Avel eCare is a suitable new home for APC and looked forward to potential collaboration based on their shared commitment to innovative care delivery.
Potential Positives
- Amwell has divested its Amwell Psychiatric Care (APC) business to Avel eCare for approximately $21M in cash, improving its financial position and balance sheet.
- The divestiture allows Amwell to sharpen its focus on key growth areas and enhance efficiencies within its core digital care platform.
- Amwell's decision to divest reinforces its commitment to agility and meeting clients' virtual care needs, suggesting a proactive approach to business strategy.
- The company reiterated its 2024 financial guidance, indicating confidence in future performance and stability amidst changes in its product portfolio.
Potential Negatives
- The divestment of Amwell Psychiatric Care could indicate a strategic retreat from a previously emphasized area of growth, raising concerns about the company's long-term vision and competitiveness in the behavioral health market.
- The sale price of approximately $21M may suggest a lower valuation of the psychiatric care segment, potentially reflecting financial struggles or reduced demand within that sector.
- Amwell's guidance reiteration for 2024 includes significant expected losses (Adjusted EBITDA between ($137) million and ($142) million), highlighting ongoing financial challenges and a lack of immediate recovery prospects.
FAQ
What is the reason for Amwell's divestment of Psychiatric Care?
Amwell's divestment of its Psychiatric Care business aims to sharpen its focus on key growth areas and enhance product efficiency.
Who purchased Amwell Psychiatric Care?
Amwell Psychiatric Care was sold to Avel eCare, a leading provider of clinician-to-clinician telehealth services.
How does this divestment affect Amwell's growth strategy?
This divestment allows Amwell to concentrate on its unified digital care platform and improve its software contribution.
What are Amwell's financial projections for 2024?
Amwell forecasts 2024 revenue between $247 million and $252 million, with adjusted EBITDA of ($137) million to ($142) million.
What services will Amwell continue to offer post-divestment?
Amwell will maintain its commitment to accessible behavioral health services through Amwell Medical Group and digital health offerings.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$AMWL Insider Trading Activity
$AMWL insiders have traded $AMWL stock on the open market 25 times in the past 6 months. Of those trades, 0 have been purchases and 25 have been sales.
Here’s a breakdown of recent trading of $AMWL stock by insiders over the last 6 months:
- PHYLLIS GOTLIB (President, International) has traded it 6 times. They made 0 purchases and 6 sales, selling 9,545 shares.
- PAUL FRANCIS MCNEICE (Chief Accounting Officer) has traded it 6 times. They made 0 purchases and 6 sales, selling 479 shares.
- VUKASIN PAUNOVICH (EVP, Enterprise Platforms) has traded it 3 times. They made 0 purchases and 3 sales, selling 6,752 shares.
- KURT KNIGHT (Chief Operating Officer) has traded it 5 times. They made 0 purchases and 5 sales, selling 7,394 shares.
- KATHY JOHNSON WEILER (Chief Comm. & Growth Officer) has traded it 2 times. They made 0 purchases and 2 sales, selling 14,700 shares.
- MARK HIRSCHHORN (Chief Financial Officer) sold 46,345 shares.
- ROBERT SHEPARDSON (Chief Financial Officer) has traded it 2 times. They made 0 purchases and 2 sales, selling 6,053 shares.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$AMWL Hedge Fund Activity
We have seen 1 institutional investors add shares of $AMWL stock to their portfolio, and 0 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ALDEBARAN FINANCIAL INC. added 20,843 shares (+1960.8%) to their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
Divestment of Amwell Psychiatric Care intended to focus product portfolio on key growth initiatives
Company reiterates guidance for 2024
BOSTON, Jan. 09, 2025 (GLOBE NEWSWIRE) --
Amwell
®
(NYSE: AMWL), a global leader in digital care, today announced it has sold its Amwell Psychiatric Care (APC) business to
Avel eCare
, a national leading provider of clinician-to-clinician telehealth services.
With the divestiture of APC, a virtual psychiatric care service that Amwell purchased in 2019, Amwell continues to sharpen its focus on key growth areas, driving greater efficiencies and fulfilling clients’ digital care ambitions. Throughout its nearly 20-year history, Amwell has continuously adapted to market demands by leveraging its technology and healthcare expertise to enable clients to deliver high-quality care. The company’s decision to divest APC reinforces its culture of agility and commitment to meeting clients’ virtual care needs.
“The divestment of APC will enable us to increase focus on our unified, world class digital care platform. The transaction strengthens our balance sheet while emphasizing our focus on growing accretive software contribution in our product mix,” said Ido Schoenberg, M.D., Amwell chairman and CEO. “We’re confident Avel eCare will be a wonderful home for our APC business and will continue to offer great value to clients. Their expertise in telehealth and shared commitment to innovation make them the ideal organization to carry forward this important work. We look forward to exploring collaborative ways for Amwell and Avel to serve patients and communities together.”
Avel eCare is purchasing the APC business for approximately $21M in cash at closing and an additional earn-out payment. The sale includes APC technology, personnel and Asana, the psychiatric clinical network affiliated with Amwell that employs and contracts with APC clinicians.
Through Amwell Medical Group
®
(AMG), the company’s affiliated clinical partner, Amwell remains committed to delivering accessible and convenient behavioral health services, including AMG Therapy Services and SilverCloud
®
by Amwell digital behavioral health. AMG will continue to be integrated into the Amwell suite of digital care solutions to complement clients’ clinical staffing needs.
“This transaction enables us to place an even greater focus on our mission of connecting and empowering providers, insurers and innovators to deliver more accessible, affordable and high-quality care," said Schoenberg. “It also fortifies our confidence in our stated goal to achieve positive cash flow in 2026.”
Amwell reiterated its guidance for 2024, which calls for:
Revenue in the range of $247 million and $252 million
Adjusted EBITDA in the range of ($137) million and ($142) million
AMG visits between 1.4 million and 1.5 million
About Amwell
Amwell is a leading hybrid care delivery enablement platform in the United States and globally, connecting and enabling providers, payers, patients and innovators to deliver greater access to more affordable, higher quality care. Amwell believes that hybrid care delivery will transform healthcare. We offer a single, comprehensive platform to support all digital health needs from urgent to acute and post-acute care, as well as chronic care management and healthy living. With nearly two decades of experience, Amwell powers the digital care of more than 50 health plans, which collectively represent more than 100 million covered lives, and many of the nation’s largest health systems. For more information, please visit
https://business.amwell.com/
.
©2025 American Well Corporation. All rights reserved. Amwell
®
, SilverCloud
®
, Amwell Converge™, Carepoint™, Amwell Medical Group
®
and the Amwell logo are registered trademarks or trademarks of American Well Corporation.
About Avel eCare
Avel eCare is a national leader in telemedicine with over 30 years of experience delivering high-quality care across diverse communities. Its services span EMS, ER, Critical Care, Pharmacy, and Behavioral Health. Since launching its Behavioral Health services in 2017 and Crisis Care
in 2019, Avel has led the way in innovative healthcare solutions, providing clinician-to-clinician support and ensuring patients receive the care they need, wherever they are.
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
