Novo Integrated Sciences Signs LOIs to Acquire 7 Pharmacies in the US

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

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Novo Integrated Sciences, Inc. NVOS, a pioneer in holistic, patient-first health and wellness services and products, has signed letters of intent (LOIs) to acquire a 50% stake in 7 pharmacies across the United States and is expected to close by the end of the year. This transaction has several benefits not only for NVOS’s unique health and wellness ecosystem, but also for the financial profile of the company.

Novo Gains New Revenue Streams and an Expanded Customer Network

The all-stock transaction would give Novo access to customers in Arizona, Florida, and Virginia — the first U.S. markets for the company whose revenue streams are currently primarily through Canada based wholly-owned subsidiaries. With this introduction to the U.S. market, Novo would benefit from the acquisition of already-established pharmacies with strong community ties that collectively generated revenues of about $55 million last year.

The deal reflects Novo’s overall strategy of expanding its network by forming community partnerships with clinics, healthcare providers, and pharmacists as well as directly with patients. Its portfolio of products and services — including the mobile telehealth platform, Novo Connect, and a wide range of remote diagnostics and monitoring technology — benefit each partner in this growing network while providing Novo with a well-diversified range of revenue streams.

Pharmacies and Patients Gain Access to Robust Telehealth, Diagnostics, and Wellness Services

As part of the transaction, the pharmacies’ current management would remain in place, signaling Novo’s understanding of the uniquely intimate relationship between a local pharmacy and the community it serves, allowing Novo to enhance the products and services available to the pharmacies dedicated customer bases by leveraging the company’s on-site diagnostic capabilities, including its cancer prediction platform (Zgraft), as well as remote monitoring technology, telehealth services, and other technologies. 

Novo’s portfolio of products and services is an expanding ecosystem of health and wellness services that help to improve patient access and experiences with healthcare. The Novo Connect patient portal, for example, will be available to customers at all 7 pharmacies. 

Unlike other pharmacy mobile apps, Novo Connect is an open-ended app that offers far more than just pharmacy services. Patients will have a secure telehealth portal through which they can schedule remote doctor appointments for noncritical care like routine screenings or exams. They’ll also have more control over their medical records and gain access to personalized health management recommendations that empower them to make better-informed decisions about their health.

The pharmacies can benefit from the introduction of innovative technology and wellness products. Patients could enjoy a broader range of health and wellness tools that extend beyond the pharmacy, giving them greater access and control over their healthcare, all while still being able to maintain that relationship with the pharmacy they’ve come to trust.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.