Today’s big news in the employee health industry is the merger of telemedicine company Teladoc Health and virtual disease management company Livongo. Both have been high flyers in 2020, with their revenues and their stock prices (Livongo just celebrated the one-year anniversary of its IPO and has been a Wall Street darling since then) skyrocketing. Each of the two companies stock prices are up by more than 100% year-to-date.
Telemedicine has been all the rage among employee benefits directors for at least five years, but utilization remained lackluster until this year, when the COVID-19 pandemic radically accelerated consumer uptake.
Benefits of the merger include “joining two leaders in consumer behavior change,” according to a joint news release.
Speaking of behavior change, both companies’ stocks made it onto the markets’ Biggest Loser list on the day of the merger announcement, with Teladoc down 19% and Livongo off by 11% — the second and fourth biggest losers for the day, respectively.