Avalon GloboCare Corp (NASDAQ:ALBT) announced that its 40%-owned clinical diagnostics and reference lab Laboratory Services MSO (LSM) has made two significant accretive acquisitions: Merlin Medical Supply (MMS) and Leading Edge Innovations.
MMS is a home medical equipment and durable medical equipment company operating in Ventura County, California, which has contracts with major healthcare payers, including Medicaid, Medicare, Medi-Cal, Optum-Rx, CCS, Tri-Care, Blue Cross/Blue Shield, Humana, Aetna, United Health and Gold Coast.
Leading Edge Innovations owns the GeeWhiz External Condom Catheter, a patented, Food and Drug Administration (FDA) registered male incontinence device approved for reimbursement by Medicare and a number of high-profile private insurance providers.
Shares of Avalon spiked on the news, up 9.9% at US$1.11 at Wednesday’s open.
“We expect LSM to greatly benefit from acquiring these turn-key and accretive businesses, which provide the opportunity to not only grow sales, but also improve profit margins by integrating them into LSM’s existing operations,” Avalon CEO Dr. David Jin said in a statement.
“The medical supply market is expected to grow rapidly with the rising geriatric population and MMS is well positioned to capitalize on this market opportunity given its established relationships with payers and clients. By combining MMS with LSM, we look forward to supporting their national expansion.”
Avalon is a commercial-stage company dedicated to developing and delivering innovative, transformative, precision diagnostics and clinical laboratory services.
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