- On Thursday, Augmedix Inc AUGX collaborated with HCA Healthcare Inc HCA to advance the development of AI-powered ambient documentation products for acute care clinicians, helping to streamline hospital workflows.
- The products instantly convert natural clinician-patient conversations into medical notes that physicians and nurses can review and finalize before transferring to the Electronic Health Record (EHR) in real-time.
- HCA Healthcare is currently pilot testing Augmedix's technology stack, which includes automatic speech recognition (ASR) technology and natural processing (NLP) algorithms, in the emergency department in two hospitals, and plans to expand the pilot in emergency departments in two additional hospitals in the first half of the year.
- HCA Healthcare will also make a financial investment in Augmedix.
- Augmedix will raise $12 million of new equity from HCA Healthcare and Redmile Group (a current institutional shareholder owning roughly 38%of shares before the deal).
- The management indicated it expects to achieve cash flow breakeven by the end of 2024.
- William Blair writes that the announcement provides incremental liquidity to break even. The analyst keeps Outperform rating.
- Moreover, the investment and partnership with HCA serve as a strong endorsement for Augmedix, writes William Blair.
- This favorable update follows strong business momentum, including strong bookings performance to exit 2022 and begin 2023.
- The analyst writes that the management has outlined a large growth opportunity going forward, with momentum expected to continue into 2023.
- Price Action: AUGX shares are down 7.06% at $3.16 on the last check Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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