Augmedix Inc. experienced a significant surge in its shares, soaring by 60% to $2.88, following the announcement of a strategic financing agreement with HCA Healthcare Inc. and Redmile Group LLC, a healthcare investor based in San Francisco.
Rumors of the deal first surfaced in January, with some dismissing the idea. Several experts say the deal makes sense for CVS Health, as it looks to expand into primary and value-based senior care.
CVS Health announced investments this week in Carbon Health, Monogram Health and Array Behavioral Care. There have also been rumors that the company is exploring a $10 billion deal with primary care company Oak Street Health.
Some industry experts seem skeptical of the rumored deal between Amwell and Talkspace, while others disagree. The rumored purchasing price is $200 million at about $1.50 per share.
Instead of building its own network of providers and bringing hybrid care services to employers like it did with Amazon Care, the new Amazon Clinic model is direct-to-consumer and outsources to third-party providers. It will likely be the more successful route for the retailer, after failing with Haven and Amazon Care, experts said.