Bringing pharmaceutical weed to telehealth, medical cannabis company Vitura Health (ASX: VIT) has decided to acquire telehealth company Doctors on Demand for an aggregate consideration of $25 million. This deal includes an upfront cash payment, a deferred cash component, and an equity stake.
The acquisition marks Vitura’s leap into new healthcare verticals, including urgent care, men’s and women’s health, weight loss, and smoking cessation services. In addition to its existing range of healthcare consults, medical certificates, pathology referrals, and specialist referrals, Vitura plans to boost the Doctors on Demand service by allowing patients to purchase various medications right after consultations. This move aims to create an end-to-end patient experience and strengthen Vitura’s position in the digital health sector.
Vitura’s CEO and Executive Director, Rodney Cocks said, “Just like the merger between Cronos Australia and CDA Health to form Vitura was a game changer, we see this transaction to acquire Doctors on Demand as having the same significant impact.
“This not only embeds Vitura as a diversified digital health company as we bolt on more services, products and verticals beyond medicinal cannabis but also supports and assists our sustainable growth and profitability.”
Doctors on Demand, founded in 2015 by Brisbane pharmacists John Martin and John Neilson, is a private Australian telehealth company. The company operates a digital platform that connects patients with registered healthcare practitioners, enabling online medical consultations via videoconference. Doctors on Demand has been a popular telehealth option, with its foundations predating the widespread adoption of this format during the COVID-19 pandemic.
These healthcare professionals provide telehealth services around the clock, 365 days a year, using Doctors on Demand’s specialised platform to conduct online consultations. They virtually examine patients and collect their medical history through videoconferencing and other technologies. Doctors on Demand was a pioneer in the field of telehealth long before the COVID-19 pandemic and the widespread adoption of telehealth as a primary mode of medical consultation.
Since then, Doctors on Demand has significantly expanded and refined its technology, achieving notable business milestones, such as having over 120 doctors actively treating patients on its platform and recording a remarkable 1,040 consultations in a single 24-hour period in September 2023.
Although Doctors on Demand serves a thriving consumer base nationwide, a substantial portion of its revenue is generated through corporate partnerships. This includes providing telehealth services as per service agreements with some of Australia’s leading health insurers and corporations.
Kirsty Garrett, the current CEO of Doctors on Demand, will take on the role of Chief Operating Officer at Vitura. In this capacity, she will oversee Doctors on Demand, CDA Clinics, Cannadoc, and various shared service functions. Kirsty will become a part of Vitura’s Executive Leadership Team and report directly to the company’s CEO.
The cash portion of the acquisition cost will be covered through a combination of Vitura’s existing cash reserves and a new debt facility of $6.25 million provided by ANZ Bank. The acquisition is slated to be finalised on or around October 26, 2023.
Alinda is a Business Reporter for The Sentiment
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