Teledoc records $6.6B impairment charge amid tough Livongo integration

Teladoc (NYSE: TDOC) saw its stock lose about half its value after announcing a $6.6 billion impairment charge amid a challenging integration of Livongo and its health management app.

TDOC shares today are still trading around $30 apiece, down 50% from where they were before yesterday’s Q1 earnings announcement.

Teladoc closed its $18.5 billion purchase of Livongo in November 2020 in a merger that held the promise of creating a telehealth behemoth. Livongo’s offering could help people better manage chronic conditions such as diabetes. If they needed help from a healthcare professional, Teladoc was there.

But as Business Insider related in a feature story a year after the acquisition closed, some of Teladoc’s health insurer customers did not respond well to Teladoc trying to sell them on Livongo services, since they were developing their own health management programs. There were also internal integration challenges and culture clashes. …

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MedTech 100 roundup: Up-and-down week for industry

Medtech stocks highlighted the topsy-turvy nature of the market last week, but ultimately finished the seven days nearly unchanged.

MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — sat at 89.77 points at the end of last week (Aug. 14). Overall, medtech stocks saw a 0.13% increase from the 89.65-point total at the same time a week prior (Aug. 7).

On Aug. 13, the index reached 90.4 points, a total that nearly poked past the previous mid-pandemic high (90.45), which came just last week.

The most recent high mark represents just a -2.1% dip from the Feb. 19 high point of 92.32, while the tally at the end of the week marks a -2.8% decrease from that pre-pandemic high.

Meanwhile, the S&P 500 Index saw a 0.64% increase from Aug. 7 to Aug. 14, and the Dow Jones Index fared even better, rising 1.8% over the same period of time.

Medtech’s lowest point during the COVID-19 pandemic remains at …

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Livongo slides despite Street-beating Q2

Livongo Health (NSDQ:LVGO) shares took a hit today on second-quarter results that came in ahead of the consensus forecast.

The Mountain View, Calif.-based company posted losses of -$1.6 million, or -2¢ per share, on sales of $91.9 million for the three months ended June 30, 2020, for an 88% bottom-line gain while more than doubling its revenue totals from the second quarter of last year.

Adjusted to exclude one-time items, earnings per share were 11¢, 10¢ ahead of Wall Street, while the revenue numbers topped the analysts’ projections by nearly 6%. The company noted in a news release that the COVID-19 pandemic has not yet had a material adverse effect on its financial position.

Livongo did not offer guidance for the full year, while the company expects that its $18.5 billion merger with Teladoc (NYSE:TDOC) announced last week will close in the fourth quarter of 2020.

LVGO shares were down -4.3% at $116.25 per share in midday trading today. T…

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MedTech 100 roundup: Another high as stocks tick up

For the third consecutive week, stocks in the medtech industry reached heights not yet seen since the COVID-19 pandemic began.

MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — sat at 89.65 points at the end of last week (Aug. 7). Overall, medtech stocks saw a 0.72% increase from the 89.01-point total at the same time a week prior (July 31).

On Aug. 5, the index reached 90.45 points, marking its highest point since that pre-pandemic high, with the previous mid-pandemic high (90.37) coming last week.

The most recent high mark represents just a -2% dip from the Feb. 19 high point of 92.32, marking the smallest margin of decline over the past five months.

Meanwhile, the S&P 500 Index saw a 2.5% increase from July 31 to Aug. 7, and the Dow Jones Index fared even better, positng a 3.8% rise over the same period of time.

Medtech’s lowest point during the COVID-19 pandemic remains at 62.13…

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Teladoc to acquire Livongo for $18.5B

Teladoc (NYSE:TDOC) announced today that it entered into a definitive merger agreement with Livongo Health (NSDQ:LVGO) worth $18.5 billion.

Purchase, N.Y.-based Teladoc and Mountain View, Calif.-based Livongo are setting out to improve the delivery, access and experience of healthcare around the world by offering high-quality, technology-enabled longitudinal care, according to a news release.

Under the agreement, each share of Livongo will be exchanged for 0.5920x shares of Teladoc, plus cash consideration of $11.33 per Livongo share, totaling $18.5 billion based on the closing price of Teladoc Health chares as of yesterday, Aug. 4, 2020. Upon the closing of the merger, existing Teladoc shareholders will own approximately 58% and existing Livongo shareholders will own approximately 42% of the combined company.

“This merger firmly establishes Teladoc Health at the forefront of the next generation of healthcare,” Teladoc CEO Jason Gorevic said in the relea…

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Livongo announces $400m offering

Livongo Health (NSDQ:LVGO) announced that it intends to offer $400 million in a private offering of convertible senior notes.

Mountain View, Calif.-based Livongo also plans to grant the initial purchasers of the notes, due in 2025, a 13-day option to purchase up to an additional $60 million, according to a news release.

The notes will be general unsecured obligations of Livongo, accruing interest payable semiannually in arrears. They will be convertible under certain circumstances into cash, shares of Livongo’s common stock or a combination of the two.

In connection with the offering, Livongo expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers and/or affiliates and/or other financial institutions. The company plans to use a portion of the net proceeds to pay the cost of capped call transactions.

Livongo said the remainder of the proceeds are earmarked for general corporate purposes, …

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