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NEW YORK - LifeMD, Inc. (NASDAQ: LFMD), a rapidly growing virtual primary care services provider with impressive 39% year-over-year revenue growth and an industry-leading 89% gross profit margin, has announced the expansion of its insurance acceptance to include Medicare beneficiaries for qualifying care. According to InvestingPro data, the company, currently valued at $224 million, appears undervalued based on its Fair Value analysis. The service is now available to over 21 million Medicare Part B beneficiaries across 26 states, with plans to extend to more than 60 million beneficiaries nationwide by the end of the second quarter, covering 49 states.
Justin Schreiber, Chairman and CEO of LifeMD, stated that the company is proud to now accept Medicare Fee-For-Service for qualifying virtual primary care, which includes their weight management program. This move is seen as a significant step in increasing access to essential care for older Americans. Schreiber emphasized that the expansion follows two years of investment in operational readiness and regulatory compliance, preparing LifeMD to serve the growing Medicare demographic effectively.
The company highlighted the importance of this expansion, noting that a substantial portion of the Medicare population, particularly in rural and underserved areas, has limited access to primary care providers. InvestingPro analysis reveals strong growth potential, with analysts forecasting profitability this year despite current challenges. InvestingPro subscribers have access to 8 additional key insights about LFMD’s financial health and growth prospects. With approximately 75% of Medicare beneficiaries being overweight or managing cardiometabolic conditions such as type 2 diabetes, hypertension, or high cholesterol, LifeMD’s virtual care platform and affiliated provider group aim to improve access and outcomes for these patients.
While Medicare Part B covers virtual consultations for obesity and other chronic conditions when medically necessary, coverage for GLP-1 medications under Medicare Part D is currently limited. Despite this, Schreiber remains optimistic about broader access to these medications in the near future, citing overwhelming bipartisan support for Medicare and Medicaid coverage of GLP-1 drugs.
The extension of Medicare Telehealth Flexibilities until September 30, 2025, allows beneficiaries to continue receiving telehealth services from various locations, including their homes. LifeMD customers will have access to synchronous medical care, urgent prescriptions, and lab services through Quest and Labcorp.
LifeMD views the expansion as aligned with its long-term strategy to diversify payer mix, strengthen recurring revenue streams, and address underserved populations through scalable, technology-driven care delivery. As telehealth adoption grows, LifeMD is positioned to capture a significant share within the Medicare market. With the stock trading at $5.03 and showing strong momentum, detailed analysis available in the comprehensive Pro Research Report on InvestingPro suggests significant upside potential, with analyst targets ranging from $7 to $16 per share.
This expansion is based on a press release statement from LifeMD, Inc. and reflects the company’s current initiatives and expectations for the future.
In other recent news, LifeMD Inc. reported impressive financial results for the fourth quarter and full year of 2024. The company achieved a 43% year-over-year increase in fourth-quarter revenue, reaching $64.3 million, surpassing expectations. Telehealth services contributed significantly with a 60% revenue increase, while WorkSimpli added $14.4 million, a 6% growth. The company also reported a net loss of $0.9 million, which was better than anticipated, and an adjusted earnings per share (EPS) of $0.21.
Looking ahead, LifeMD has set ambitious revenue targets for 2025, projecting between $265 million and $275 million, with Telehealth revenue expected to be between $205 million and $213 million. Analysts have responded positively, with H.C. Wainwright raising the price target for LifeMD to $14 and maintaining a Buy rating. Cantor Fitzgerald also reaffirmed an Overweight rating with a $15 target, citing the company’s strategic expansion into high-growth markets. KeyBanc Capital Markets maintained an Overweight rating with a $7.50 target, noting the company’s robust revenue and EBITDA performance.
LifeMD’s recent expansion into commercial and Medicare networks is anticipated to drive future growth, with expectations that these networks could contribute significantly to revenue in the coming years. Additionally, the company is preparing for the launch of Medicare Fee-For-Service coverage, which is expected to expand its customer base. These developments highlight LifeMD’s strong position in the telehealth market and its potential for continued growth.
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