Source: Teladoc Health and Cloud DX.

With millions left without medical care due to COVID-based backlogs, tens of millions of surgical complications every year, and roughly 1-in-3 adults suffering from multiple chronic conditions, the need for health tech solutions to streamline hospital workflows and improve the patient experience is at a generational high.

This is where telehealth and remote patient monitoring (RPM) providers have entered the fold to both optimize health care quality and capitalize on this outsized market opportunity.

One of the most promising emerging players in the space is Cloud DX (TSXV:CDX; C$15.14 million market cap), a medical technology and RPM company using data to lower costs, save time and improve outcomes for patients, payers and health care professionals alike.

Cloud DX’s Connected Health platform allows for frictionless patient-provider communication, 24/7 vital sign measurements and programmable notifications for better results, all from the comfort of home.

Cloud DX - Connected Health Kit.
Cloud DX’s Connected Health Kit.

Patients receive a kit comprised of a wireless scale and oximeter, the company’s Pulsewave health monitor, and a custom tablet with pre-installed apps and daily educational health content, each component FDA-cleared and designed to work right out of the box for maximum patient comfort.

On the provider side, clinicians can continuously access patient vital sign data through a comprehensive and easy-to-use dashboard with electronic medical record integration.

The end result, in study after study, is that Connected Health’s real-time monitoring expands health care’s reach at a time of unprecedented need, enabling more efficient behavioral coaching, medication adjustments and house calls that minimize hospital admissions and increase time at home with loved ones.

One of these studies, published in The British Medical Journal in 2021, analyzed the experiences of over 900 patients and found that Connected Health resulted in 5 per cent less hospital visits, as well as double-digit percentage decreases in medication errors and reported pain compared to standard care.

Connected Health currently produces recurring revenue from health care facilities across the U.S. and Canada for chronic disease management, post-surgical monitoring, palliative care and COVID outpatient care.

Cloud DX’s Pulsewave pulse, heart rate and blood pressure monitor in action.

Cloud DX’s cutting-edge technology – which also includes its Vitaliti wearable vital sign monitor, and its AcuScreen cough analysis app for tuberculosis detection – has attracted the attention of health care market heavyweights, leading to partnerships with the likes of Medtronic, CBI Health, Vital Aire (Air Liquide), Prizm Media, Maxwell Telecare and Equitable Life, all of which are expected to fuel global growth as they move into the implementation stage.

The company’s most recent strategic partnership with Teladoc Health, the largest telehealth company in the world, intends to significantly enhance remote patient monitoring services in Canada.

Teladoc (NYSE:TDOC; US$5.1 billion market cap) is the leader in whole-person virtual care with a presence in 175 countries and over US$2 billion in revenue in 2021, up 86 per cent YoY. Its proprietary health signals and J.D. Power award-winning customer service drive better health outcomes for over half of Fortune 500 companies.

Pursuant to the partnership, Connected Health will gain additional functionality by integrating Teladoc’s Solo virtual care platform, diabetes management programs and mental health care programs. Solo is a highly personalized, data-driven enterprise platform that adapts to any clinical workflow. It has been deployed in over 4,000 hospitals and health care systems worldwide, including in Canada, connecting patients with health experts through high-fidelity video, real-time data and streamlined capabilities like self-service check-in.

The integration will improve the Connected Health experience through more seamless patient-provider communication channels, as well as added scale to reach the neediest patients across the country. According to the Government of Canada, there are approximately 5 million Canadians over 35 suffering from congestive heart failure and chronic obstructive pulmonary disease. Add to that the over 560,000 awaiting postponed surgeries, according to the Canadian Institute for Health Information, and the considerable social and investment potential represented by this partnership becomes clear.

Teladoc will benefit from greater exposure to the Canadian health care market, backed by Cloud DX’s expertise in acute, complex and chronic care, while Cloud DX will benefit from Teladoc’s brand equity and established infrastructure as it expands into new markets. The partners intend to offer their combined platform to provinces and providers across Canada, and eventually across the world.

“By joining forces with Cloud DX in Canada,” stated Dr. Joby McKenzie, Managing Director, Teladoc Health, Canada, “we will bring needed scale to reach people across this vast country who can benefit from remotely monitoring their health conditions at home, all while reducing the strain on hospitals and clinicians.”

“Offering Teladoc Health services as part of the Connected Health ecosystem creates a compelling and robust remote patient monitoring solution,” added Robert Kaul, Founder and CEO of Cloud DX. “Together, Teladoc Health and Cloud DX offer a complete, best-in-class tool kit for health care providers to address acute and complex cases.”

Investment case

Backed by high-profile partnerships, and a technology suite improving patients’ lives across Canada and the U.S., Cloud DX is well-positioned to capitalize on the virtual care market’s estimated 128-per-cent growth between 2021-2027 (Research and Markets).

The company ended 2020 with a mere 3,700 patients accessible under contracts in place. By the end of 2021, it had grown the number to over 2 million, up over 54,000 per cent YoY. In 2022, momentum has continued unabated, with 19 contracts signed or extended as of Q2, already up 158 per cent from 2021, and a 54.8-per-cent YoY decrease in net loss thanks to operational efficiencies. This doesn’t account for the collaboration with Teladoc, whose global presence – including over 50 million U.S. subscribers – represents the latest reason Cloud DX holds the potential for a blue sky opportunity.

For more information, visit www.clouddx.com.

FULL DISCLOSURE: This is a paid article produced by The Market Herald.


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