Victory Square’s (VST.C) portfolio companies IV Hydreight and Victory Square Health (VSH) will be combining resources to create and expand telehealth product offerings in Brazil.
“My team members and I at VSH are very excited with this newly formed partnership between Hydreight and our Company. This strategic partnership positions our company to be a leader in the massive emerging Digital Health space in Brazil. The advantages brought to this partnership with Hydreight include: important tech, payment processing, secured channels, and mobile on demand and in-person live service deliverables to the consumer in a safe and secure manner that will mesh seamlessly with our product offerings and services,” stated Felipe Peixoto, VSH President and CEO.
Following the sudden emergence of COVID-19, telehealth has seen a drastic surge in popularity. The enforcement of social distancing has prevented many patients from receiving in-person care, resulting in many turning to virtual consultations. According to Teladoc Health, the total amount of virtual consultations reached 2 million in three months, indicating an overall increase of 60% between January and March 2020.
Through this partnership, VHS and Hydreight will be able to offer a wide range of services throughout the country including on demand physicians, prescription services, cosmetic services, in-home consultations, full integration with insurance providers and proprietary testing services. Through the Company’s secure protocols, citizens will be able to receive urgent care and testing either online or in person.
“We’ve been very pleased with the strong performance of both Hydreight and VSH. The two transactions have created tremendous value for Victory Square and our shareholders. This partnership announcement aligns with our strategy to have VSH become a leader in the digital health revolution in Brazil,” said VST CEO Shafin Diamond Tejani.
VHS and Hydreight have teamed up at an opportune time as the Digital Health market in Brazil continues to explode. According to a report published by LAVCA, healthtech was the second-fastest growing tech sector in Latin America. With this in mind, only 75% of Brazil’s population have access to the country’s public healthcare system which is poorly managed and highly inefficient. In response to this deficit, technology driven startups have been rapidly developing in Brazil to provide greater access to citizens.
Victory Square has positioned itself quite nicely following the partnership of its portfolio companies, VHS and Hydreight. The global telehealth market size was valued at USD 61.40 billion in 2019 and is expected to grown substantially to USD 559.52 billion by 2027. During this period, the market is expect to grow at an impressive compound annual growth rate of 25.2%. With this in mind, Victory Square will likely continue on its upward trend as it establishes a presence in Brazil’s telehealth market.
Victory Square’s stock price opened at $0.83 today and reached a high of $0.94 following the news. The Company’s stock price currently sits at $0.89.