In a Sunday announcement, Canadian Prime Minister announced the federal government will spend more than $240 million to make it easier for mental health care and other medical services to take place online. Trudeau told media that virtual care is for when patients don’t need to see a doctor in person and hopes the investment can let hospital emergency rooms focus on patients who need to be there.
The PM also announced the government will create a corona-virus supply council to procure personal protective equipment for Canadians as the country prepares to open back up. The new council will be tasked with finding innovative solutions to ensure the country will have vital supplies necessary for the reopening.
This investment will be used to create digital platforms and applications, improve access to virtual mental health support, and expand capacity to deliver health care virtually; including projects to reach vulnerable Canadians.
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So far the lump sum will give more than $175 million to AbCellera, a Vancouver-based company claiming to have isolated hundreds of antibodies that could be used in a potential COVID-19 vaccine. Based on the announcement, it leaves us with speculation that some of the public operators who may receive funding include CloudMD (CSE: $DOC), Telus (TSE: T), Well Health (TSE:WELL) and Loblaw (TSE: L); all of which provide some level of online care. The DeepDive covered this area as being one of the hottest spaces for small caps in Canada back in November and launched coverage on CloudMD; a stock which has nearly doubled over the last 2 months.
Although it is unknown which companies will be granted funding from the federal government; the announcement shows further industry tailwinds for all virtual care providers.
FULL DISCLOSURE: The author does not own any of the securities mentioned above, with the exception of Premier Health Group who is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Premier Group on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
2 Responses
I think we all thought this was another Vancouver special. Six month later they are announcing real deals, adding real board members, massive tailwinds…… Count DOC.cn as a real COVID play.
Will be a disaster for the economy – an accelerated move to online services means trimming fat. Means less jobs. CloudMD – DOC, actually seems like a solid investment here.