Shares of Cano Health closed Friday at $9.64 per share, up 9.04%, on a report the primary care provider has entered exclusive talks to be bought by CVS Health.
Sources told Bloomberg that CVS is currently conducting due diligence on the Miami, Florida-based company that focuses on seniors and underserved populations. The sources reportedly emphasized that there is no certainty a deal will be reached, adding that Humana Inc. has a right of first refusal if Cano finds a buyer based on an agreement made in 2019.
|CVS||CVS HEALTH CORP.||69.82||-0.21||-0.30%|
|CANO||CANO HEALTH INC||0.25||-0.03||-10.07%|
Representatives for CVS Health and Cano Health did not immediately return FOX Business' request for comment.
Cano, which operates 141 primary care facilities for seniors in California, Florida, Texas, Nevada, Illinois, New Mexico and Puerto Rico, went public in June 2021 after completing a $4.4 billion business combination with special purpose acquisition company (SPAC) Jaws Acquisition Corporation, which is sponsored by Starwood Capital founder, chair and CEO Barry Sternlicht.
In its second quarter of 2022, Cano Health reported total revenue of $689.4 million, up 101% year-over-year, and a net loss of $14.6 million, down from a net loss of $36.3 million during the same period a year ago. The value-based primary care provider currently has over 281,000 members, including more than 163,000 Medicare capitate members, up 80% and 47%, respectively, year over year.
For full fiscal year 2022, Cano Health anticipates total revenue will be between $2.85 billion to $2.90 billion and total memberships to be between 300,000 and 305,000. It also expects to operate up to 189 medical centers by the end of 2022.
The reported talks come after CVS announced last month that it would acquire home health care company Signify Health in a deal valued at about $8 billion. CVS previously acquired Aetna for $68 billion in 2018 and Caremark for $27 billion in 2007.
The world's second-largest healthcare company operates more than 9,900 retail pharmacy locations and 1,100 MinuteClinic locations. CVS also offers prescription drug plans for major companies through its Caremark arm and provides health insurance plans and services to an estimated 39 million people through Aetna.