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Amidst the ongoing opioid crisis, which has prompted increasing scrutiny of traditional pain treatments, there is a growing recognition of the need for comprehensive and effective approaches to pain relief. This shift is creating a market for innovative solutions that integrate conventional medical practices with alternative therapies, such as medical cannabis. As more patients and providers seek to navigate the complexities of pain management, the landscape is evolving rapidly, paving the way for new opportunities in healthcare delivery.
KindlyMD, Inc. (NASDAQ: KDLY) has emerged as a pioneer in integrating traditional primary care with alternative pain management strategies. Founded on a patient-first philosophy, KindlyMD operates four centers, including the largest alternative pain treatment center in Utah. The company combines primary care, pain management, behavioral therapy, and alternative treatments, including medical cannabis recommendations, to offer comprehensive care and reduce opioid dependency.
Financial Milestones and Market Presence
KDLY announced the closing of its IPO of 1,240,910 units at $5.50 per unit, raising approximately $6.8 million in gross proceeds back in early June. This financial boost positions KindlyMD to execute its growth strategy effectively.
Additionally, KindlyMD has made significant strides in becoming the first alternative medical treatment company in Utah to contract with the state's top insurance payors, including Select Health, Medicare, Medicaid, and Blue Cross Blue Shield, covering nearly 80% of Utah's population.
"This is a major milestone for KindlyMD," said Tim Pickett, PA-C, founder and CEO of KindlyMD. "Now, the scope of services we provide at our Company-branded clinics, including behavioral healthcare and medical interventions incorporating alternative medicine, are covered by and reimbursable by the largest insurance providers across the state."
Addressing the Opioid Crisis
Provisional data from the CDC's National Center for Health Statistics indicates that in 2021, nearly 108,000 people died of drug overdose in the U.S., with over 80,000 of these deaths attributed to opioids. The government has responded with the largest opioid treatment grant funding ever. Despite widespread use of prescription medication among Americans aged 45-64, many of these prescriptions are insufficient and carry significant long-term side effects.
KindlyMD is addressing this crisis head-on by offering non-opioid treatment options like medical cannabis, which have become more widespread in recent years. However, these options are often excluded from clinical recommendations and guidelines, creating an unmet need that KindlyMD aims to fill. To date, the company has seen over 60,000 patient visits in its clinics, providing comprehensive care plans that ensure safe use, appropriate dosing, and behavioral health support for those who need opioids.
Strategic Collaborations and Community Outreach
On June 10, KDLY announced a collaboration with Curaleaf Holdings, Inc., a leading international provider of cannabis products. The two companies are working together to provide educational resources on holistic pain management and treatment options, including medical cannabis. This partnership includes community care events throughout the summer, aiming to enhance patients understanding of holistic pain management
"Our innovative collaboration with Curaleaf will provide more patients with access to pain management treatment options and alternative therapies," said Tim Pickett. "As the U.S. government moves toward rescheduling cannabis as a legitimate medicine, this collaboration will help more patients find sustainable, safer, and more affordable healthcare treatment options."
KDLY recently submitted a comment to the U.S. Department of Justice regarding the proposed reclassification of cannabis from Schedule I to Schedule III of the Controlled Substances Act. This reclassification is expected to have several positive impacts on the medical cannabis industry, including reducing patient costs and enabling businesses to deduct standard operating expenses.
"Reclassification underscores the continued relevance and importance of our integrated healthcare model," said Tim Pickett. "It will likely lead to increased access and utilization of medical cannabis among our patients, benefiting KindlyMD through improved patient outcomes, new educational opportunities, and enhanced financial stability."
Federal Funding Initiatives
KindlyMD's successful registration on SAM.gov, the official U.S. federal funding platform, marks a significant milestone for the company. This registration enables KindlyMD to obtain federal grants and contracts, including those with the Department of Veterans Affairs, to support its mission of providing comprehensive healthcare solutions.
Following its registration, KindlyMD submitted its first grant application for the USDA Rural Utilities Service Distance Learning and Telemedicine Grant Program, seeking $1,000,000 to expand its Complete Care telehealth program in rural communities in Utah. This program aims to deliver effective healthcare through an interconnected network of telemedicine clinics, addressing the unique challenges faced by rural populations.
Financial Performance
For the quarter ended March 31, 2024, KDLY reported revenues of $829,029, a decrease compared to the previous year, primarily due to a shift towards insurance billing. However, the company began receiving reimbursements from insurance payors for the first time in its history during this period, amounting to $34,722. Operating expenses decreased by 21.9%, and the company reported a net loss per share decrease of 50%.
The capital raised from the IPO will enable KindlyMD to invest in growth opportunities, including mergers and acquisitions of additional clinics in Utah. With over 16% of the medical cannabis patient population in Utah already under its care, KindlyMD is well-positioned to expand its reach and enhance patient outcomes.
KindlyMD, Inc.'s (NASDAQ: KDLY) innovative approach and industry expertise position it uniquely to continue providing unique healthcare services. As the regulatory landscape evolves, KDLY remains a crucial partner for patients seeking alternative and integrative healthcare solutions, particularly in the ongoing battle against the opioid epidemic.
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