August 18th, 2025 | 07:25 CEST
780% return thanks to expensive medicine: PanGenomic Health, CVS Health, Teladoc Health
Healthcare costs are skyrocketing. According to KFF, a leading US healthcare policy organization, the United States spent around USD 4.5 trillion on healthcare in 2022. That is equivalent to 17% of gross domestic product. Given the millions of Americans who, due to lack of insurance, opt for painkillers instead of visiting a dentist, that is a remarkable figure. KFF also reports that one in four Americans postponed medical treatment last year. In this complex environment, the importance of personal responsibility and self-therapy is growing. Companies are stepping in to address the situation and offer solutions. We present three business models and explain what opportunities they may hold for investors.
time to read: 3 minutes
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Author:
Nico Popp
ISIN:
PANGENOMIC HEALTH INC | CA69842E4031 , CVS HEALTH CORP. DL-_01 | US1266501006 , TELADOC HEALTH INC.DL-001 | US87918A1051
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Author
Nico Popp
At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.
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PanGenomic Health offers medical advice via app to people who want to make their own decisions
High healthcare costs and a lack of health insurance have long made Americans resourceful. This is having an impact on the market for alternative medicine and nutritional supplements, which could almost double to USD 124 billion between 2024 and 2033, according to GrandViewResearch. The Canadian startup PanGenomic Health has entered this billion-dollar market and aims to conquer North America first in 2025. CEO Maryam Marissen emphasizes that both doctors and patients face the challenge of identifying suitable alternative preparations. This is precisely where PanGenomic aims to support patients and practitioners with its AI-driven platform NaraCare.AI. PanGenomic plans to launch a Nara shopping platform for natural health products in the US in the third quarter of 2025. The NaraCare.AI platform, which will deliver personalized treatment recommendations, is scheduled to follow in the fourth quarter of 2025.
PanGenomic and CVS Health: Cost pressure as a return booster
PanGenomic Health occupies an interesting niche with its AI platform: Patients can document their symptoms, receive treatment recommendations and are not left to fend for themselves afterwards. In addition, the AI recommendations generate revenue through the Company's online shop for dietary supplements. In the US, these include extremely potent active ingredients and medical precursors that are suitable for treating complex health issues. It is critical that such substances are not used without guidance - and this is precisely where NaraCare.AI comes in. PanGenomic Health's business model mirrors that of major players like CVS Health. The US pharmacy chain has long recognized the cost problem in the US healthcare system as an opportunity and, in addition to selling medicines, offers insurance services and ensures that minor treatments and consultations are more affordable in so-called Minute Clinics or via telemedicine. Looking ahead, CVS plans to invest USD 20 billion over the next decade to simplify the healthcare system for consumers. The main approach is better networking.
The figures from CVS, which increased its revenue in the second quarter of 2025 by 8.4% to USD 98.9 billion, show that there are plenty of opportunities to be found in a healthcare system that is under severe cost pressure. According to MarketBeat, analysts are also predominantly positive: of more than 20 experts, around 18 currently recommend buying the stock. The price targets are mostly in the range of USD 75 to USD 80. The situation at telemedicine pioneer Teladoc also shows that the market for innovation in the US healthcare system is extremely dynamic.
Teladoc: Telemedicine providers under pressure – Will the cards be reshuffled?
The Company was already offering virtual doctor's appointments for just USD 40 in the 2010s, striking a chord with cost-conscious US patients. Over the years, the Company expanded its offering to include more and more specialties and now serves over 100 million members in its B2B and direct programs. This consists of the psychological emergency service Better Help. However, it is precisely this offering that has recently come under pressure, with revenues shrinking by 9% in the second quarter. The number of users also declined. The reason: other providers are entering the market and offering, among other things, coverage by insurance companies. Teladoc now also works with health insurance companies. However, it remains to be seen whether the decline in users can be halted.
Innovative healthcare stocks between duds and high flyers
The share price performance of the three companies mentioned above clearly shows that investors should place emphasis on sound stock picking when it comes to innovative healthcare providers in the US. Teladoc's stock has lost 42% of its value over the past six months and must first demonstrate operational success. At CVS Health, the traditional pharmacy business still dominates. While the stock gained 4.6% in six months, the billion-dollar company does not promise dynamic growth. The situation is very different for PanGenomic Health: The small cap is currently valued at only around EUR 20 million and is extremely agile on the stock market: A remarkable 780% return in just six months speaks for itself. If PanGenomic Health succeeds in establishing its app, further growth could follow. One factor in PanGenomic Health's favor is that the app can be used alongside existing healthcare networks like those of CVS Health and Teladoc - meaning PanGenomic is not directly competing with the giants. Thanks to the complex situation in the US healthcare system, PanGenomic Health offers speculative investors an exciting opportunity.
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Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
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