One of the Best Performers in Our Portfolio Just Keeps Delivering
Email Sent On: 04-03-2021
Myfiziq (ASX:MYQ)’s share price just keeps going up and up... smashing through all time highs yet again yesterday.
MYQ has developed an accessible, advanced human imaging platform on a smartphone for the med-health, population health, fitness and insurance sectors.
We love the health tech space: the smart healthcare products market size is estimated at $44.65 billion in 2020 and will reach about $85.37 billion by the end of 2030.
We were wondering what was happening with the MYQ share price less than 4 weeks ago when it ran from $1 to $1.34 - who would have thought it would hit $2.20 a few weeks later.
We actually added to our position at $2.00 because it looked like it might keep going. This time, we invested a smaller amount than usual and of course it’s gone up since then...
Hindsight is always easy when investing.
MYQ has been one of the best performers in our portfolio and just keeps delivering.
The interesting thing about MYQ’s tech is that it makes money by letting larger companies integrate the MYQ 3D body scan into their products and services, so it can be used across multiple industries.
Here is a video how the app works:
Many sectors can use MYQ’s mobile app 3D body imaging tech:
- Health - MYQ’s body imaging can be integrated into telehealth - a booming sector after COVID.
- Insurance - Insurance companies can use MYQ body imaging to monitor health for insurance premium pricing.
- Fitness - COVID caused a huge shift to online fitness. MYQ’s app can be integrated into fitness apps to let users track their body changes. MYQ already has deals with fitness apps by Conor Macgregor, Floyd Mayweather, Biomorphik, Evolt and Bearn.
- Weight management - A systematic review of multiple randomized controlled studies among overweight adults showed that greater engagement in self-monitoring using digital health tools was associated with significant weight loss - another tick for MYQ.
- Online shopping for clothes - 42% of consumers said they plan to shop even more online once the pandemic ends than they do now. The number of e-commerce packages returned in 2020 rose 70% from 2019. One of the top reasons is improper fit. Integrating MYQ can help big retailers reduce returns.
Here is what we think is driving MYQ’s stellar run:
NASDAQ listing incoming
MYQ is nearing a NASDAQ listing, which would see it gain access to the giant US investor market. We expect the listing to occur in the next couple of months, which might be the explanation for the run.
The below info gives a peek into just how big the US appetite is for health tech companies like MYQ:
Amazon, Facebook, Google and Apple - scrambling into health tech in recent months:
- Amazon released its Halo health tracking device
- Facebook introduced its gamified Oculus Move VR platform
- Apple launched a fitness streaming service
- Google announced that it had completed its acquisition of wearable startup Fitbit.
Health tech Sector going nuts in the US - deals on deals
A 2020 report by Verified Market Research sees this health tech market grow over 15x from $2 billion in 2019 to $34 billion in 2027.
Here are some of the mega deals that have been happening in US health tech (where MYQ is about to arrive via its NASDAQ listing):
- Beachbody - known for its streaming fitness content and nutritional meal plans, listed on the NASDAQ in a deal that values the company at nearly $3 billion.
- Sharecare - a Patient Engagement and Management Tools now listing on the NASDAQ, expected to have an initial enterprise value of $3.9 billion.
- Capsule Technologies - a leading provider of medical device integration and data technologies for hospitals and healthcare organisations to be acquired for $635 million cash.
- Talkspace - connects users with licensed therapists via video chat or text and intends to be listed on the NASDAQ at $1.4 billion valuation (including debt).
Here are some recent US investments and valuations of health tech companies:
- Insightin Health - the industry's only single platform which provides complete personalised member engagement for each step of the healthcare journey, announced a $12M Series A funding round.
- Aledade - is working to reshape primary care and recently scored a $100 million funding round. The six-year-old startup is now valued at $2.1 billion. The company has raised $306 million to date.
- K Health - raised $132M to roll Out K for Parents, remote diagnosis and possible treatments for kids aged 3-17 bringing the company’s total raised to date to over $271 million.
- RxBenefits’ - technology-enabled pharmacy completed a recapitalisation which valued the company at approximately $1.1 billion.
- SoftBank Group Corp.’s Vision Fund - led a $360 million funding round in the startup behind China’s most popular workout app Keep, as coronavirus-driven gym closures prompt more users to exercise in their homes.
- Hinge Health - a San Francisco company tackling musculoskeletal (MSK) health through digital programs with live virtual sessions, has wrapped up a $300 million Series D round that places its total value at $3 billion.
All of these companies are seeing substantial investment into health and care services at an exponential rate.
MYQ does not see itself as a disruptor of the space, moreover it positions itself as an augmenter and data provider to all of the companies mentioned above.
MYQ provides critical information that would usually only be available through a doctor visit or a care provider appointment. Cost effectively, conveniently, and privately.