- Custom Health Holdings (TSX:CHLT) has begun trading on the Toronto Stock Exchange, providing investors with exposure to technology-enabled medication management.
- The company combines pharmacy operations, remote clinical care and its proprietary AdhereNet® platform to improve medication adherence and patient outcomes.
- Management plans to drive growth through a combination of pharmacy acquisitions and expanding its technology platform across the U.S.
Custom Health brings home-based healthcare platform to the TSX
As healthcare systems increasingly shift toward home-based care, Custom Health Holdings is positioning itself at the intersection of pharmacy services, remote patient monitoring and digital health.
In this episode of The Capital Compass, Coreena Robertson sits with Founder and CEO Shane Bishop as he explains how the company’s integrated platform connects pharmacies, patients, clinicians and physicians through its proprietary AdhereNet® technology. By monitoring medication adherence in real time and providing actionable clinical data, the platform aims to improve patient outcomes while reducing healthcare costs.
Growth is being driven by several factors. In the United States, government reimbursement programs and private healthcare providers are increasingly supporting remote patient monitoring and medication management solutions. Custom Health says its platform has already demonstrated cost savings for Medicaid programs by reducing the need for in-home care visits while improving medication compliance.
Following its recent TSX listing, the company is pursuing a strategy that combines technology with pharmacy acquisitions. Rather than acquiring pharmacies indiscriminately, management is targeting regions where reimbursement agreements and payer relationships are already in place, creating opportunities for both organic growth and recurring software and clinical services revenue.
Looking ahead, investors can expect continued expansion through additional acquisitions, growing adoption of the company’s remote care platform and further penetration of the U.S. healthcare market, which management identifies as its primary growth opportunity.
Watch the video above or on YouTube, or read the full transcript below, and share your thoughts with the community.
Healthcare technology targets better outcomes beyond the hospital
Coreena: Could the next major healthcare opportunity come not from building more hospitals, but from helping patients stay healthier at home? That’s creating a significant opportunity for companies using technology to rethink how care is delivered.
One of those companies is Custom Health Holdings, which recently began trading on the Toronto Stock Exchange, bringing its technology-enabled medication management platform to public market investors. The company combines pharmacy services, remote clinical care, and its proprietary AdhereNet® platform to support patients with chronic conditions and improve medication adherence.
Joining me today is Shane Bishop, founder and Chief Executive Officer of Custom Health Holdings. Shane, congratulations on going public, and welcome to the Capital Compass.
Shane: Thank you so much, Coreena. Thanks for having me today. Much appreciated.
Coreena: Now, for investors who are just getting to know the story, can you tell us about Custom Health, what the company does, and the problem you’re trying to solve in healthcare?
Shane: Yeah, we’ve actually developed the platform, the full infrastructure that connects pharmacies that we own and operate to patients in their home that actually have a medication dispensing device and a connected care hub, our proprietary technology.
That actually sends data up into the platform where our clinicians work in real time to analyze this data coming from the device in the patient home. And we’re actually connected right into physician EHRs and EMRs.
So we actually have a full platform connecting data from pharmacy to patient to clinician on our team, and then down into the physician offices where we actually make recommendations in real time and allow physicians to do a better job with the data that we actually collect. So, we call it an infrastructure positioning in play.
Coreena: And very time efficient. As healthcare increasingly shifts toward home-based care and remote monitoring, investors are paying close attention to companies that can improve outcomes while lowering costs.
What is driving the growth of the business today? Is it increasing demand for medication management, the expansion of your pharmacy network, your technology platform or a combination of these factors?
Shane: I think it’s the combination of the factors. When we actually pulled together the pharmacies that we owned and operated and connected to the patients with the device and brought in the clinical team to actually do something with the data, that’s where we started signing all the large contracts.
The groups that are pushing this technology to patients that they look after are actual pain providers, large provider groups in the US where there’s reimbursement mechanisms set up by the US to cover our solution, which is kind of the right place, right time for us.
And also we have a number of state Medicaid deals and plans that actually pay for the technology where they have actually shown an ROI by actually implementing our technology, our clinical oversight. Instead of actually having their staff or case managers, care workers coming into the patient home four times a day to deliver medication we actually take care of that remotely and we’ve saved a lot of dollars and we have some published data on that.
It’s really twofold. Health plans, state Medicaid plans, that kind of grouping as well as providers who want their patients on this technology.
Coreena: The public markets also tend to reward healthcare companies that have multiple growth levers and clear opportunities to scale. Now, looking ahead, what are some of the key catalysts and milestones that investors should be watching for from Custom Health over the next 12 to 18 months?
Shane: I think we have the right secret sauce to access the public markets right now, which is kind of why we went in this direction. You can think of us as somewhat of a sophisticated pharmacy roll-up strategy.
We’re making acquisitions of pharmacies in key geographies where we have payers for our in-home technology and clinical service. So we’ll go in and make an acquisition like we just did in a recent announcement. We bought two pharmacies under the banner InnovativeRx. They are pharmacies in geographies where we have these payers lined up.
So we have to make that acquisition of the pharmacies, actually grow the pharmacies quickly by pushing patients into those pharmacies that are coming from our payers. And on top of that pharmacy revenue and pharmacy growth, we have the extra SaaS tech clinical revenue on top of that.
It’s a very exciting model. And so as we grow and move forward, you’re going to see announcements in pharmacy acquisition space, always in geographies where we have payers lined up. So again, driving both the inorganic and organic growth at the same time. Pretty cool model. And pharmacies are excited to join. We do half kind of cash, half stock transaction.
That’s why we wanted to access the public markets and jump on the TSX. Lots of opportunity to consolidate the market in that space and leverage our technology to grow with these patients.
Coreena: And is there anything else you want investors to know?
Shane: I think it’s exciting space and time right now. We are focused on the US. I would suggest 80% of our time and effort is in the US. The payers have lined up in the US. The government’s putting a lot of money into remote patient monitoring, remote therapeutic monitoring, kind of our niche.
And medication management is a key component of that. Lots of activity in Canada. We have a lot of great relationships. We’ve done a lot of studies. We’ve been publishing a number of geriatrics journals, and we have the data to support our solution.
Payers in Canada are a little slower to adopt, but that said, I think a nice 20/80 mix is what you’re going to see from us and continued steady growth through acquisitions and our kind of organic growth strategy.
Coreena: All right. So this appears to be a story of healthcare innovation, reoccurring revenue, and a large addressable market with Custom Health aiming to become an important piece of the infrastructure that helps patients manage medications and receive care at home.
The company recently listed on the TSX and is pursuing growth through both organic and acquisition across North America. Custom Health trades on the TSX under the symbol CHLT. Thank you so much for your time today, Shane.
Shane: Thank you, Coreena. Much appreciated. Take care.
Coreena: And thanks for watching The Capital Compass.
