Ontrak appoints CVS executive as top boss; shares rise

Ontrak

16/03/2021 17:12

** Shares of telehealth co Ontrak Inc  OTRK.O  up 4.7% at
$36.86
    ** Co appoints CVS Health  CVS.N  Executive Vice President
Jonathan Mayhew as the new chief executive officer, effective
April 12  urn:newsml:reuters.com:*:nBw2H8VcLa
    ** Current CEO Terren Peizer was named executive chairman
and will continue to serve as chairman of the Ontrak board of
directors and remains majority shareholder
    ** Brokerage Canaccord Genuity upgrades stock to "buy" and
views this as a major positive for OTRK and validates the
company's service offering
    ** Mayhew could enable OTRK to regain its Aetna Behavioral
Health contract for substance use disorder (SUD) and potentially
also add anxiety and depression conditions, while also opening
up the potential for other populations at Aetna and CVS Health-
brokerage
    ** Raises PT to $46 from $32, representing a premium of 32%
to stock's last close
    ** Current avg. rating on OTRK is "buy"; median PT is $40-
Refinitiv IBES
    ** Stock up 261.7% in the last 12 months

 (Reporting by Trisha Roy in Bengaluru)
 ((Trisha.Roy@thomsonreuters.com; within U.S. +1 646 223 8780,
outside U.S. +91 80 6182 3635;))