UPH - UpHealth gains on deal to divest subsidiary Innovations Group
- Digital health company UpHealth ( NYSE: UPH ) added ~6% pre-market Monday after announcing an agreement to divest its subsidiary Innovations Group Inc. (IGI) to pharmacy operator Belmar Pharma Solutions for ~$56M in gross proceeds.
- The company also sells IGI’s compounding pharmacy unit MedQuest Pharmacy, Inc, with the transaction, which is expected to close in May, subject to customary closing conditions.
- UpHealth ( UPH ) has earmarked a majority of sales proceeds to invest in growth, Chief Executive Sam Meckey said, adding that part of the proceeds will also be used to pay down a portion of secured debt.
- “2023 is a recalibration year for UpHealth and execution of our strategic vision is our top priority. This will allow us to focus on building a fully integrated platform to drive growth,” he added.
- Seeking Alpha contributor Busted IPO Forum wrote in August that UpHealth ( UPH ) was yet to generate profits despite its “ significant revenue growth.”
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UpHealth gains on deal to divest subsidiary Innovations Group