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Well Health's U.S. Expansion Takes on Abortion Access

Well Health Technologies’ (CA:WELL) majority-owned subsidiary, Wisp, announced on Oct. 19 that its telehealth medical abortion service was available in two more U.S. states: Connecticut and New Mexico. That brings the total number of states served by the sexual and reproductive health leader to nine.

“In the wake of the overturn of Roe v. Wade, inequities in access to care have only deepened,” said Ahmad Bani, CEO of Wisp. “By providing the most accessible abortion services in more states than ever, we’re able to help alleviate a stressed healthcare system and allow patients to take ownership of their reproductive health with privacy and respect.”

Wisp was founded to make reproductive and sexual healthcare inclusive, cost-effective, and accessible. Women 18 years of age or older, less than ten weeks pregnant, and living in one of the nine states where Wisp operates are eligible to receive an at-home medical abortion for $200, 30% less than the average cost in the U.S.

“The treatment is non-invasive and consists of oral medication to terminate a pregnancy. Wisp’s medical and customer care teams are available 24/7 throughout treatment and recovery, included in the cost of service,” stated Wisp’s press release.

Sometimes referred to as the “abortion pill,” medication abortions grew from zero in 2000 when the U.S. Food and Drug Administration (FDA) first approved the combination of mifepristone and misoprostol, to 54% of all U.S. abortions in 2020, the latest available data from the Guttmacher Institute confirms.

Wisp is working to increase access and grow this percentage beyond existing levels.

Well Health acquired majority control of the Silicon Valley-based health-tech company in October 2021 for the US$41.3 million. Well Health paid for the 53% ownership stake with US$27.7 million in cash and US$6.2 million of its stock. The purchase also included a US$7.4 million performance-based earn-out.

As part of the transaction, Well received a call option to buy the remaining 47% of the company, held by senior management and insiders.

On Oct. 17, Well Health provided investors with an update on its U.S. businesses, including Wisp.

The company said that Wisp and Circle Medical — a provider of virtual and in-person primary care in 14 U.S. states — generated an annualized run rate over US$100 million. This revenue included 116,989 patient visits to Circle Medical physicians and 186,952 asynchronous consultations by Wisp.

Circle Medical’s patient visits for the last 12 months ended Sept. 30, 2022, were 2309% higher than a year earlier, while Wisp’s consultations were over 50% higher than in the same period last year.

Well Health’s wholly-owned subsidiary, CRH Medical, continues to make acquisitions in the U.S.

CRH acquired Phoenix-based Grand Canyon Anesthesia in September, a business with more than 100 anesthesia providers generating $16 million in annual revenue. CRH operates in 18 states. Well Health paid US$373 million for CRH in April 2021.

Well Health stock is down more than 43% year-to-date.

This article originally appeared on Fintel

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