News roundup: WeightWatchers in 45-day prepackaged Ch. 11, Neuralink BCI successful in ALS subject, telehealth VR reduced TMD pain–study, AliveCor maxes up KardiaMobile 6L, TytoCare-Allina Health partnership, UHG-Amedisys divest some more

May 8, 2025 | by

WeightWatchers (WW) unburdens itself of debt in a prepackaged Chapter 11 bankruptcy. The reorganization under the bankruptcy filed yesterday in the US Bankruptcy Court for the District of Delaware will take $1.15 billion of a total $1.62 billion (as of March 2025) in debt off their books while providing it with enough capital to reemerge in an estimated 45 days or around 1 July, or less. The Chapter 11 plan retains $175 million from their revolving credit facility, reduces its annual interest payments by $50 million, and extends their debt maturity dates. With bankruptcy court approval, their lenders receive new secured debt and equity. In the company statement, CEO Tara Comonte expressed confidence about WW’s future:  “The decisive actions we’re taking today, with the overwhelming support of our lenders and noteholders, will give us the flexibility to accelerate innovation, reinvest in our members, and lead with authority in a rapidly evolving weight management landscape.” The first day hearing is on 8 May. WW release, Kroll case information

WW entered the GLP-1 prescription weight loss drug race relatively late, last October, with compounding semaglutide, which boosted their fortunes for a time. They acquired telehealth provider/clinical weight manager Sequence in mid-2023 [TTA 2 Mar 2023], then formed the WeightWatchers Clinic program by December [TTA 21 Dec 2024] Results this year were projected at 140-160,000 subscribers. But that was not enough to correct WW’s problems, which were a profound loss of total subscribers: in Q1 2025 3.4 million subscribers versus 4 million in Q1 2024, with 2.8 million of them. Stock had traded on Nasdaq for some months below $1, with today’s trading below $0.50. Shares had lost 71.9% over the past 12 months, making it a (money) loss for nearly all common stock holders. Morningstar

The (physical) weight loss segment now dominated by Hims & Hers, Ro, LifeMD–now with prescription deals for Novo Nordisk’s Wegovy—and other telehealth providers and teleprescribers such as Teladoc, FuturHealth, RemedyMeds, Eden, and many others, made WW a latecomer. Even CVS Caremark got into the partnering act when it switched over to Wegovy from Lilly’s Zepbound in its standard formulary. This move may lure more members to its weight management program. As with Ro and LifeMD, the lowered cash pricing is $499/month. Healthcare Dive. For WW, is this a lasting cure or just kicking the can down the floor?

Brain-computer interfaces (BCI) notch a big win. At the end of April, Neuralink confirmed its third successful implant, this one in an ALS patient, Brad Smith. The disease rendered him non-verbal, on a ventilator, and paralyzed below the shoulders. With the Neuralink brain implant, about the size of five quarters, he can now communicate verbally through his MacBook Pro and play video games only with his thoughts–essentially telepathy. He created a video using a voice cloned from previous recordings when he could speak, and using a mouse to create the narration. Previously, he used an eye gaze controller to communicate. This is truly miraculous and flying under the radar. Mobihealthnews, RedState  The previous recipients, Noland and Alex, are both paraplegics[TTA 21 Feb 2024].

Next up is Blindsight, which Elon Musk has said that will be tested in humans by the end of 2025 [TTA 10 Apr]. There is also a Canadian clinical trial, the “Canadian Precise Robotically Implanted Brain-Computer Interface” (CAN-PRIME) for subjects with tetraparesis or tetraplegia resulting from cervical spinal cord injury or the neurological disease ALS [TTA 27 Nov 2024].  A competitor of Neuralink, Precision Neuroscience, closed a Series C at $102 million last December.

A telehealth virtual reality (VR) solution effective for reducing chronic pain. A study published last month in Nature/NPI Digital Medicine demonstrated significan reductions in a 54-participant group, with some receiving telehealth-based immersive VR intervention on chronic orofacial pain (temporomandibular disorders or TMD) versus an audio-only (MP3) same-content control intervention and non-intervention on five-day ‘waves’. Pain intensity, unpleasantness, anxiety, sleep disturbance, and mood were monitored. There was significant reductions achieved with the immersive VR on pain intensity and other factors, with lesser results achieved with the MP3 intervention. The study directionally confirms results in other studies on lower back pain and other pain studies. Researchers were based in the University of Maryland School of Medicine, School of Nursing, and Towson University.

Short takes:

AliveCor is adding to its new KardiaMobile 6L Max KardiaAlert. KardiaAlert is now integrated into KardiaCare, a subscription service for the KardiaMobile 6L Max AI-assisted ECG monitor. The consumer purchase of the KardiaMobile 6L Max includes the device and a one-year subscription to KardiaCare, which now includes the KardiaAlert feature. The six-lead KardiaMobile 6L Max identifies up to 20 arrhythmias with a clinician review. Introductory price is $169. Release

Allina Health deploying TytoCare at 12 urgent care locations. The Midwest health system is adding the TytoCare Pro Smart Clinic service to a dozen of its urgent health locations in order to shorten wait times and offer additional remote treatment. For Allina, this allows their urgent cares to see more patients, offer hybrid care, and additional services such as heart and lung exams (featuring AI-driven wheeze and crackle detection), throat and ear assessments, skin exams and body temperature measurements. Allina Health, with hospitals in Minnesota and western Wisconsin, already uses TytoCare remote monitoring in hospital settings. TytoCare release

UnitedHealth Group and Amedisys persist. The long-running and DOJ-challenged acquisition by UHG of Amedisys home care is once again trying to remove the anti-competitive stumbling block by divesting more home care and hospice operations, this time to BrightSpring Health Services and Pennant Group. This was disclosed in Amedisys’s SEC Form 8-K. It is contingent of course on the closing of the UHG buy. BrightSpring is based in Kentucky and Pennant in Idaho. Pennant’s own SEC filing lists their purchase price as $102.5 million. The total number of operations to be sold is not disclosed. UHG and Amedisys extended their runway on closing to 31 December in January.  Healthcare Dive, Home Health Care News

The Department of Justice has been prominently blocking the $3.3 billion UHG acquisition, announced in what seems an eon ago in June 2023, on anti-trust grounds nearly immediately after the Hart-Scott-Rodino Act (HSR Act) premarket notification was filed, but most recently in a civil lawsuit filed last November in District Court in Maryland. The DOJ was joined by the Attorneys General of Maryland, Illinois, New Jersey, and New York. It alleges elimination of competition, harm in over 100 markets, falsely certifying compliance with HSR Act requirements, withholding documents, and much more. Additional background on that lawsuit is here. As this Editor said when UHG won in Federal court on acquiring Change Healthcare, a win they have 190 million reasons why to regret, “DOJ has a long memory, a Paul Bunyan-sized ax to grind, and doesn’t like losing.”

Cano Health at precipice of bankruptcy after disastrous Q2, lays off 700

August 15, 2023 | by

Primary care provider Cano Health may follow Babylon Health down the same drain. After announcing a horrible Q2 last week, Cano Health in its press release finally admitted that their “liquidity is not sufficient to cover the Company’s operating, investing, and financing uses for the next 12 months”. 700 people, or 17% of its current workforce, will be laid off during Q3 as part of restructuring.

Cano, or what will be left of it after the following, is officially up for sale either whole or partially, ASAP.

  • Cano will exit three states and one territory: California, New Mexico, and Illinois by the fall which presently have 5,000 members and 17 medical centers. Puerto Rico, with 8,000 members in an unenumerated number of affiliated practices, will wind up as of 1 January 2024. 40% of the layoffs they attribute to the exits, the rest to consolidation of and other downsizing of administrative operations.
  • Downsizing Texas and Nevada medical operations.
  • Massive restructuring in their core market of Florida.
  • Reducing their current 169 medical centers to 136 by the end of year
  • Their Q2 net loss was $270.7 million, adding on to Q1’s $60.6 million net loss [TTA 12 May]. This compares to prior year net loss of $14.6 million, an increase of over $256 million or over 1800 percent. This was attributed to lower Medicare Risk Adjustment (MRA) revenue and higher than expected medical expenses, along with adjustments and higher than forecast interest expenses.
  • Their adjusted EBITDA was equally dismal: $149.7 million, compared to $9.9 million profit in Q2 2022 and Q1’s $5 million,
  • Liquidity is $101 million as of 9 August–not enough to conduct business for 12 months (and an educated guess, to 31 December. Their line of credit (CS Revolving Line of Credit) is fully drawn while they engage in a rather complicated negotiation of something termed the “2023 Side-Car Amendment”. Supposedly this will be paid down ‘significantly’ by September. Despite this, here is the cautionary statement regarding the sale of the company or assets, which would not be in their release unless the company was truly in a deep hole indeed:

The Company has not set a timetable for the conclusion of this process and there is no assurance that the process will result in any transaction.  Cano Health does not intend to comment while it undergoes this process, unless required by law or the Company determines that it would be in its best interests.

Cano stock sank to the $0.40 to $0.45 range from a year ago in October of close to $10.

A stock commentator quoted in Becker’s (Seeking Alpha, paywalled) posits that any sale would be just about impossible without Chapter 11 bankruptcy. Logically, any investor would prefer to pick up assets at a fire sale without the encumbrances of a workforce, as brutal as that sounds. But the value of Cano is in its practices and workforce delivering primary care. Another wrinkle is that Cano is in current CMS agreements on Medicare Advantage and ACO REACH contracts that would have to be assumed. One would also assume that their search for a new CEO to replace interim Mark Kent is also on hold.

Not a peep yet from the Cano 3 (resigned directors Barry Sternlicht, Elliot Cooperstone, and Lewis Gold), but observers expect they will have something to say with 35% of near-worthless shares in their collective portfolios. Medical Economics, Reuters, FierceHealthcare, Healthcare Dive   Our prior coverage on CEO Marlow Hernandez’s ‘step down’ on 21 June has links to earlier stories.

This story is developing and will be updated.