A Healthcare Disruptor in a Multi-Billion Dollar Industry

11/14/2016 9:10 am EST

Focus: STOCKS

Michael Berger

President & Founder, Technical420.com

For investors looking for a growth stock that is disrupting a multi-billion-dollar market, market expert Michael Berger — President of Technical420 — highlights a Canadian-based development-stage healthcare technology company that is very undervalued and has remarkable growth potential.

Reliq Health Technologies (RHT: TSX Venture) (RQHTF: OTC) is a healthcare technology company that specializes in developing innovative, secure mobile software solutions for the multi-billion-dollar community care market.

Reliq offers a state-of-the-art iUGO Care platform, a comprehensive hardware and software solution that allows patients to receive high-quality care at home, which leads to improving health outcomes, a better quality of life for patients, and a lower cost of care.

The iUGO Care solution integrates wearables, sensors, a proprietary voice technology hub, and mobile apps and desktop interfaces for patients, clinicians and healthcare administrators. Reliq Health's proprietary iUGO Care hardware and software supports patients and their caregivers in the home, providing remote monitoring with alerts to clinicians as needed, audible reminders to improve patient compliance with prescribed medication regimens and lifestyle changes, tailored digital patient education materials and secure communication with the entire care team. 

Investment Thesis

We are favorable on Reliq due to its ability to disrupt a multi-billion-dollar market, its strong management team that continues to execute on its initiatives, its four pilot programs, and its attractive valuation.

Piloting its Virtual Care Technology in the UK

In August 2016 Reliq announced that it had secured a pilot with the National Health Service in the UK. The pilot is focused on congestive heart failure and diabetes, two of the most common chronic conditions in the UK.  Currently there are more than 15 million people in England that live with at least one long-term health condition.

Earlier this month, Reliq Health announced that it has started enrolling patients in the pilot of its remote patient monitoring and care collaboration solution with the NHS England. The goal of the pilot is to demonstrate the value of Reliq Health's self-care solution in improving health outcomes and reducing the cost of care delivery for chronic disease patients after they are discharged home from hospital.  Imperial College Hospital, London, UK will serve as the clinical partner for this pilot.

The NHS England is the largest single-payer healthcare system in the world, with an annual budget of over £100 Billion. There are over 15 million patients in England who are coping with at least one long-term health condition. NHS England has estimated that improvements in self-care in this population could result in £584m in savings by 2021.

Executing on Two Pilots and a White-Label Contract in the United States

Reliq Health has announced two pilot programs in the United States.  In one of these pilots, the company will be working with the interventional pain management clinic and surgical center at The Feldman Institute in Baton Rouge, Louisiana.  The pilot will evaluate the use of Reliq Health’s technology with patients who have been discharged home after interventional pain management surgery, or have returned to their homes between treatments at The Feldman Institute.

The second pilot, which we are very excited about, is its program with Sacred Heart Health System in Florida. The Sacred Heart Health System is a healthcare network in Northern Florida consisting of three hospitals and Sacred Heart Medical Group, a large regional network of primary care and specialty physicians with offices across seven coastal counties.  Sacred Heart is part of Ascension Health, the nation's largest system of Catholic and non-profit health care facilities.

The company has also secured a US$1.22M contract to provide professional services and a limited license to Reliq’s proprietary iUGO Care platform, specifically for the development of a consumer focused mobile health app (Mindful Health App) that will be provided by the City of San Antonio, TX to its residents to support them in proactively managing their own health.

Led by a Strong Management Team

Reliq Health is led by a strong management team with a proven track record of success before joining the company. Reliq’s CEO Lisa Crossley is an experienced healthcare IT executive and had previously served as the CEO of VitalHub Corp., Quantum Dental and Natrix Separations.

Giancarlo De Lio is the company’s Chief Visionary Officer.  Giancarlo has a strong background in healthcare and information technology and a global network in the healthcare space.  Giancarlo is a serial entrepreneur who previously founded and/or led successful businesses in the digital, mobility, healthcare and IT industries.

Reliq Health CFO Aman Thindal is a key component of Reliq’s team given his background in financial reporting, corporate structuring and tax management. He was previously the CFO of a mid-tier real estate development firm where he had been able to successfully raise capital.

Leo Godreault serves as the Vice President of Products and his background as a healthcare IT entrepreneur is a major benefit for Reliq. Prior to joining Reliq Health, Godreault founded SmartMED, a successful healthcare startup.

In late July, Reliq Health strengthened its Board of Directors through the addition of Brian Storseth. Prior to joining Reliq, Storseth was a Member of Parliament with the Conservative Party of Canada for 9 years from 2006 to 2015. During his tenure as an MP he served on committees for Aboriginal affairs, agriculture and agri-food. 

Attractive Valuation

Reliq Health currently has a very small market capitalization, but with pilots in progress with multiple large hospital networks in North America and Europe, we feel it is poised for tremendous growth and associated increase in market cap. For this reason, we believe Reliq is significantly undervalued and underappreciated by Wall Street.

Reliq Health offers a very attractive opportunity for investors after it secured several pilot programs and this provides the market with a visible path for growth.

If Reliq is able to close at least one of the pilot programs, the company will be positioned for significant growth. Reliq currently has four pilot programs and this is very attractive since we expect to see them secure deals from at least two of these clients.

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