Medical documentation startup Augmedix went public through a reverse merger with Malo Holdings. A subsidiary of the company merged with Augmedix on October 5, allowing it to begin trading over-the-counter on OTCQB.
After the merger, CEO Emmanuel Krakaris will continue in that role, and founder Ian Shakil will also continue to serve as Augmedix’s chief strategy officer. In a news release, Krakaris said the financing would put the company on a path of accelerated expansion, and fuel its research and development.
The San Francisco-based startup was founded in 2013. To date, it has raised more than $107 million in funding, according to an SEC filing outlining the deal. As part of the deal, it closed $25 million in a private placement.
The company builds software that works with smartphones or Google Glass to allow remotely-located documentation specialists to create a medical note for each visit within a clinician’s EHR. It captures conversations between physicians and patients to produce medial notes, which are then turned into medical documentation by workers in the U.S. or overseas. It currently charges $1,800 per doctor per month for this service.
So far, Augmedix works with several large health systems, including Sutter Health, Dignity Health and US Oncology. But less than 1% of its customers’ physicians currently use the service.
As of June 30, 2020, it has 510 clinicians using its service, a slight increase from 462 at the end of December. In total, the company brought in $14.11 million in revenue in 2019, up from $10.82 million in 2018. But it has also been operating in the red, reporting an $18.5 million net loss in 2019. This may be in part due to the cost of remote documentation services, which accounted for part of the company’s $10.86 million in general and administrative costs.
The company also has some upcoming debt, with a loan taken out under Comerica Bank due and payable in December. As of June, it had $5.41 million in cash on hand, of which $2 million was restricted under the loan.
Augmedix said it plans to integrate machine learning into its note-building feature to automatically provide note suggestions to its remote documentation specialists. Other competitors, such as Saykara and Suki, are trying to make parts of documentation fully autonomous.
Original Article: (https://medcitynews.com/2020/10/augmedix-goes-public-through-reverse-merger/)