Hoy Health could make more buys with Middle East expansion on horizon, CEO says
Hoy Health, a care management platform for vulnerable populations backed by Dagrosa Capital, is eyeing acquisitions in the pharmaceutical delivery and adjacent spaces, CEO Mario Anglada said.
The Morristown, New Jersey-based company is looking at a few targets including national and international medication home delivery and adjacent companies, the CEO said, pointing to medical billing companies. Buys are not a primary focus for the company, Anglada said, adding internal resources and meeting pent-up demand.
“Do we find a resource externally and acquire that, or do we build our internal capabilities?” The CEO said. “We haven’t decided that.”
To finance potential acquisitions, the company could tap investors that have contributed to Hoy’s capital raises and could look at all partners for follow-on investing, Anglada said, adding that the company did not necessarily need to go down that route currently.
On 31 August, Hoy Health announced that it had acquired San Antonio-based mobile healthcare organization HomeFront Health. HomeFront utilizes veteran medics and deploys them into the community to provide care, Anglada said. The acquisition extends Hoy’s remote patient monitoring services and provides veterans with work and resources for post-military life, he said.
Hoy Health provides B2B and B2B2C services, the CEO said. Its B2B services are its largest area and are focused on remote patient monitoring and hospital home-transition programs, the CEO said. The company works with health insurance companies, physician offices and hospitals in areas like Puerto Rico, Texas and Florida, he added. Its entire remote patient monitoring app can be accessed with a third-grade education level and is accessible for those who can’t read, Anglada said.
Its home-transition programs give Hoy access to patients once they are discharged from hospitals to ensure they are following care plans, he added. Hoy works with organizations like the American AIDS Foundation and federally qualified health centers.
Its B2B2C side includes a direct-to-consumer telemedicine platform for patients that can provide a Spanish- or English-speaking doctor and one of 600 different medications for USD 79, Anglada said. Its second product, a chronic disease management kit, provides materials and two 30-day medication supplies, out of 1,100 medications, for USD 89, he added. The company also offers prescription discount cards with pre-negotiated rates and medication vouchers and a separate voucher service which allows people in separate states to call in medication for patients.
In March, Hoy Health announced that it had secured an investment from Miami-based DaGrosa Capital Partners. Hoy decided to partner with DaGrosa to accelerate growth opportunities that the COVID-19 pandemic provided, the CEO said. Hoy’s timeline with DaGrosa depends on “various metrics” including when it will need more capital and how fast it’s able to become revenue self-sustaining, he said.
The company has an international footprint and has solidified its presence in Mexico since 2019, when Anglada told this news service that Hoy planned to expand internationally in 2Q20. It is interested in expanding into the UAE, Saudi Arabia and the Middle East region, most likely in 2022, something that is possible due to numerous language capabilities available on Hoy’s mobile app, he said, adding that Hoy is working with a strategic healthcare partner to make its Middle East expansion “a reality.”
The company usually attempts to expand internationally via partnerships but could look at acquisitions, Anglada said.
When asked if the company could use advisors in its expansion, the CEO said it would “leverage experts” to craft strategies in new regions and markets.
The company did not reach USD 10m in 2020 revenue due to the COVID-19 pandemic, a number that Anglada told this news service in 2019 it was expecting to reach, but anticipates hitting that number in mid-2022, the CEO said.
In addition to its B2B business, the company is becoming increasingly interested in retail expansion, such as home delivery and in-store sales, Anglada said. Hoy is being approached for retail partnerships, which would serve as a “last mile solution,” the CEO added.
The company uses DLA Piper for legal counsel and Polsinelli as regulatory counsel.
by Sydney Halleman in Charlottesville, Virginia
Reporter | Mergermarket