The Oncology Institute appoints new CFO

CERRITOS, Calif. - The Oncology Institute, Inc. (NASDAQ: TOI), a community-based cancer care provider, today announced a change in its executive team with the upcoming departure of current Chief Financial Officer Mihir Shah, who will leave the company on October 14 to explore new opportunities. Rob Carter, who has been serving as the Senior Vice President of Finance, will step into the CFO role.

Mr. Carter, who joined TOI in 2021, has over ten years of experience in finance leadership within the healthcare sector. Before his tenure at TOI, he was involved in financial planning and analysis at Hoag Health System and held various financial leadership positions at Kaiser Permanente, SCAN Health Plan, and McKesson (NYSE:MCK).

Dr. Daniel Virnich, CEO of The Oncology Institute, expressed confidence in Carter's (NYSE:CRI) abilities to lead the company's financial operations into its next growth phase. He also took the opportunity to acknowledge Shah's contributions to TOI, particularly highlighting his role in guiding the company through its initial public offering and enhancing its finance and accounting capabilities.

Carter himself expressed his commitment to furthering TOI's mission, focusing on innovation and growth, and delivering value to patients and payor partners. The Oncology Institute, established in 2007, has been expanding its reach in oncology care by offering advanced treatments, including clinical trials and transfusions, across its network of over 70 clinics.

This executive transition comes at a time when TOI continues to grow its presence in the oncology sector, aiming to provide value-based cancer care to its patient population, which now exceeds 1.8 million.

The information for this article is based on a press release statement from The Oncology Institute.

In other recent news, The Oncology Institute (TOI) has reported its Q2 2024 results, indicating a period of growth with a 23% increase in revenue compared to the same period in the previous year, and a significant 76% rise in oral drug revenue. Despite facing challenges such as higher Direct and Indirect Remuneration (DIR) fees, TOI has updated its full-year guidance for gross profit and adjusted EBITDA, with the company's CEO expressing confidence in TOI's direction and announcing a strategic review to enhance shareholder value.

The Institute has also signed three additional capitated contracts during Q2, extending its services to two more states. Leerink Partners has been engaged to assist the Board in reviewing strategic alternatives. TOI anticipates significant improvement in net loss and adjusted EBITDA in the second half of the year, and expects capitation contracts signed to date to contribute over $41 million in annualized revenue and $13 million in adjusted EBITDA.

However, TOI also experienced reimbursement pressures on IV and oral drug margins, leading to lower-than-expected gross margin. Despite this, the company's California pharmacy is projected to generate over $70 million in incremental revenue, and operational efficiencies have led to a reduction in total SG&A as a percent of revenue by 15.1%. These are the latest developments in TOI's journey to navigate industry-wide challenges while maintaining growth and efficiency.

InvestingPro Insights

As The Oncology Institute, Inc. (NASDAQ: TOI) navigates a change in its executive team, investors and stakeholders are closely monitoring the company's financial health and market position. According to InvestingPro data, TOI currently holds a market capitalization of $22.12 million. While the company has seen a commendable revenue growth of 23.31% over the last twelve months as of Q2 2024, it is important to note that TOI is not profitable over the same period, with an operating income margin of -17.62%.

InvestingPro Tips suggest that TOI is trading at a low revenue valuation multiple and analysts do not anticipate the company will be profitable this year. Additionally, the stock has experienced a significant downturn, reflected in a 78.61% price total return over the last six months and currently trading near its 52-week low, with the price at just 11.04% of the high.

Despite these challenges, TOI's liquid assets do exceed its short-term obligations, which could provide some financial flexibility as the new CFO, Rob Carter, takes the helm to drive growth and innovation. For those interested in a deeper analysis, there are over 10 additional InvestingPro Tips available, which can provide more insights into TOI's financial metrics and market performance.

The insights and metrics provided by InvestingPro can be particularly valuable for investors seeking to understand the financial trajectory of TOI, especially in light of the recent leadership changes. For more detailed analyses and tips, investors can visit InvestingPro at https://www.investing.com/pro/TOI.

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