Like many Americans, you might be clenching your fist at Purdue Pharmaceuticals after watching the first episodes of Hulu’s hit series “Sick. “
As the show states, medicine – while flawed – may seem like the best and easiest treatment for pain management. However, there are a number of non-narcotic therapies that may be beneficial for people with chronic pain. These 3 actions are here to help America’s physical and mental recovery.
1. Physiotherapy in the United States: improving movement and managing pain
Physiotherapy in the United States (NYSE: USPH) drives America forward. An operator of ambulatory physiotherapy clinics and provider of industrial injury prevention services, this $ 1.4 billion healthcare company operates more than 550 ambulatory physiotherapy clinics in 39 states. Its offices provided care to just under 1.1 million patients in the last quarter. Ranging from rehabilitation for knee replacements to chronic back pain and work-related injuries, the services available at US Physical Therapy aim to get patients back on their feet.
âº Daily Money: Get our latest personal finance stories delivered to your inbox
The physiotherapy market is very fragmented, with no company holding more than 10% of the market share. Thus, the addressable market of over $ 30 billion in annual revenue is ripe for disruption and consolidation. Then there’s the fact that about half of Americans over 18 develop a musculoskeletal injury that lasts longer than 3 months. But, with just 10% of people in this age group using outpatient physical therapy, there are plenty of market opportunities.
âº The following: Purdue Pharma Approaches OxyContin Bankruptcy Resolution
COVID-19 has taken its toll on the business, with the business recording about 45% of its usual volume in April 2020, and ultimately US Physical Therapy closed a total of 48 clinics (of which 14 have been sold) in 2020. Still, the company has apparently emerged stronger, with net sales of $ 126.9 million for the second quarter of 2021, up from $ 126.4 million in 2019, despite opening 21 clinics of less on average in the second quarter of 2021. Things are looking up though, as the number of patient visits increased at a compound annual growth rate of 8.5% from 2012 to 2019. Plus, with a dividend yield 1.04% and many addressable markets to come, this healthcare company could provide reliable and steady growth for your portfolio.
2. Discussion space: let’s talk about it
We can all use therapy on occasion, and luckily the online therapy company Discussion space (NASDAQ: TALK) can help. As a mobile behavioral health care business, Talkspace provides affordable and timely access to therapy for couples as well as teenagers.
With more than 60,000 active members in the last quarter, Talkspace has proven its effectiveness. Eighty percent of its users believe its initial asynchronous text therapy approach is as effective as traditional face-to-face therapy. After eight weeks, 44% of clients experience a clinically meaningful change compared to 25% of clients meeting in person with their therapist. At three months, 59% of clients feel an improvement compared to 50% of clients in traditional treatment settings. A whopping 98% of Talkspace users find the platform more convenient than face-to-face visits.
This digital mental health care solution projects $ 125 million in net revenue for fiscal 2021, which represents revenue growth of approximately 69% year-over-year with gross margins of 64%. With numbers like these and a market cap of just over $ 550 million, the stock looks pretty undervalued. Better yet, management believes it can become profitable in 2022 while continuing its impressive growth.
3. Nevro: Implantable solutions for diabetic pain
A diabetic patient whose condition is untreated or poorly managed may develop diabetic neuropathy, a form of nerve damage that often results in numbness in the legs and feet. Just over five million American citizens suffer from this disease, 45% of whom are resistant to routine management with medication. Manufacturer of medical devices Neuro (NYSE: NVRO) offers an implantable solution for diabetic neuropathy.
The company has the only spinal cord stimulation system with an FDA-approved indication for the treatment of this disease. It can also have another competitive advantage. The system can be optimized remotely by patients over the phone, allowing them to tailor therapy without the physical presence of a device representative. This individualized approach may explain why 85% of patients experience 75% pain relief – an impressive benchmark considering these patients have not responded well to medical treatment.
Nevro reported a non-GAAP Adjusted EBITDA for the second quarter of 2021 at $ 3.0 million, compared to negative $ 11.1 million in the second quarter of 2019. With an annual addressable market of 3.5 to 5 billion dollars, Nevro has room for growth as this upgraded device just hit the market in April 2021. Since it just transitioned to non-GAAP profitability in the last quarter, significant growth in device sales could generate big profits for investors.
Focus on the mobile solution
These three companies offer different ways for investors to approach the chronic pain market. US Physical Therapy is a more mature company with a dividend that is unlikely to experience explosive growth. Compared to Talkspace which is in its infancy and whose revenues are increasing by more than 50% per year. And yet Nevro offers a combination of growth with its new indications for diabetic neuropathy and has the stability of a medical device maker.
Of these three, I think Talkspace deserves a closer look. Yes, there are bigger competitors like TelaDoc (NYSE: TDOC) entering the space, and the actions of the mobile mental health enterprise underperformed – down more than 60% since its initial public offering after its merger with an ad hoc acquisition company (SPAC) end of June. Despite this, Talkspace continues to show impressive growth. The company has the potential to be profitable by the end of 2022. As it reported gross margins above 60% and revenue growth of nearly 70% year-over-year, this doesn’t It may only be a matter of time before investors listening to Talkspace start to see their portfolios heal.
Motley Fool offer
10 actions that we prefer to American physiotherapy: When our award-winning team of analysts have stock advice, it can pay off to listen. After all, the newsletter they’ve been running for over a decade, Motley Fool Equity Advisor, has tripled the market. *
They have just revealed what they believe to be the 10 best stocks for investors to buy now … and US Physical Therapy was not one of them! That’s right – they think these 10 stocks are even better buys.
The Motley Fool is a USA TODAY content partner providing financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.