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Diving brief:
- Veradigm is explore a sale or mergermonths after health tech company was founded delisted from Nasdaq for non-compliance with financial reporting requirements.
- The company, formerly known as All scriptssaid Tuesday it's Also change his position as general manager – Again. President and Chief Commercial Officer Tom Langan will assume the role of interim CEO on June 7, after the term of current interim chief Shih-Yin Ho expires.
- Lee Westerfield, the interim CFO who joined the company in December, has extended his contract until the end of the year.
Dive overview:
Veradigm was delisted from Nasdaq in late February, after failing to file its financial reports on time despite repeated warnings of the stock market.
In securities deposits, the Chicago-based health care technology company said its financial reports could not be trusted due to “internal control failures.” Veradigm has not filed its annual reports for 2022 or 2023, and it is missing quarterly reports from the first quarter of 2023 to the first quarter of this year.
The company recently shook up his leadership suite amid investigation into financial reports. Veradigm removed its former CEO Richard Poulton and its CFO Leah Jones in December, appointing interim replacements.
Veradigm said it does not plan to appoint permanent management while it considers a sale, merger or other transaction, and does not have a timetable for the exploration process.
The decision to consider a sale or merger – as well as Ho's departure – are surprises, according to a note from analysts at TD Cowen.
“The combination of events suggests to us the possibility of an unsolicited offer leading the Council to explore all alternatives,” they write.
Although the healthcare IT company has not released official financial reports, Veradigm's core business “continues to be strong, profitable and healthy,” said Greg Garrison, the company's executive chairman.
Veradigm has acquired two companies in recent months, acquiring a revenue cycle management company Koha Health in January and health data company ScienceIO in March.
The company also reaffirmed its financial guidance on Tuesday. It projects revenue of between $620 million and $635 million for 2024 and adjusted earnings before interest, taxes, depreciation and amortization of between $104 million and $113 million.