UPH - UpHealth surges on deal to divest Innovations Group

• UpHealth ( NYSE: UPH ) shares gained 11% premarket on Monday after the digital health company reached a deal to sell Innovations Group to Belmar Pharma Solutions for ~$56M.
• Subject to customary closing conditions, the deal is expected to close in May 2023.
• The acquisition covers Innovations Group's compounding pharmacy subsidiary, MedQuest Pharmacy, and represents a substantial milestone in UpHealth’s ( UPH ) focus on further integration of its telehealth, integrated care and behavioral health businesses.
• CEO Sam Meckey commented:"2023 is a recalibration year for UpHealth and execution of our strategic vision is our top priority. We will use a substantial portion of the proceeds from this sale to invest in our core offerings to drive growth, but will also offer, in accordance with our indenture, to use a portion of the proceeds to pay down some portion of our secured debt."

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