MONTERREY, Mexico - Auna S.A. (NYSE: AUNA), a healthcare company with a presence in Latin America, has introduced OncoSalud, the first oncology insurance product in Mexico. This new insurance, accessible through Auna's hospital network in Monterrey, Nuevo Leon, focuses on the prevention and early detection of cancer, which is the third leading cause of death in the country.
OncoSalud, mirroring the model that has been in place in Peru for over 35 years, offers coverage for the latest medical guidelines, protocols, and technology for cancer treatment. The insurance is designed for individuals under 70 without pre-existing cancer conditions and costs approximately $40 per month. Policyholders are entitled to an annual insured amount of up to $0.5 million and can avail of free preventive check-ups and diagnostic exams.
Suso Zamora, Chairman of the Board and President of Auna, expressed his confidence in the product's potential to transform oncology treatment access for Mexican communities, citing Auna's significant role in providing high-complexity oncology services in the regions it operates. Zamora also highlighted the company's aim to make healthcare more accessible and estimated the total addressable market for OncoSalud in Mexico to be up to 14 million people.
Sven Boes, Executive Vice President of Health Services at Auna, emphasized the importance of the insurance in addressing both the physical and emotional needs of cancer patients, noting that Auna currently covers over a million individuals with its insurance products and treated over 40,000 cancer patients last year alone.
The launch of OncoSalud is part of Auna's broader mission to enhance healthcare accessibility and transform healthcare delivery in Spanish-speaking Latin America. As of March 31, 2024, Auna's network boasts 31 healthcare facilities, including hospitals and outpatient centers, with a total of 2,308 beds, and 1.2 million healthcare plans.
This news is based on a press release statement and includes forward-looking statements that involve risks and uncertainties. Auna has cautioned that the expectations reflected in these statements may not materialize and that actual results could differ materially due to various factors, including inaccuracies in data or errors in assumptions.
In other recent news, HSBC (LON:HSBA) has initiated coverage on Auna SA, assigning the healthcare provider a Buy rating with a price target of $12.60. The financial institution cites significant growth opportunities as a potential driver for the company's earnings in the near term. Auna SA's successful expansion into the Colombian and Mexican markets, as well as its recent acquisition of Dentegra in 2023, are key factors in this positive outlook.
The launch of new oncology healthcare insurance plans in Mexico is expected to increase occupancy rates, complementing the organic growth opportunities within Peru. HSBC's outlook for Auna is further bolstered by the potential for a significant increase in the company's EBITDA margin over the next five years. This builds on the already substantial EBITDA margin improvement of approximately 630 basis points from 2018 to 2023.
These are recent developments that underscore the expectation of continued earnings momentum for Auna, driven by both the upcoming product rollout in Mexico and the company's ongoing efforts to expand and optimize its healthcare services across the regions it operates in.
InvestingPro Insights
In light of Auna S.A.'s (NYSE: AUNA) innovative launch of OncoSalud in Mexico, real-time data and insights from InvestingPro provide a deeper look into the company's financial health and market performance. According to InvestingPro data, Auna's market capitalization stands at a robust $627.56 million, indicating a significant presence in the healthcare sector. The company's revenue growth has been impressive, with a 41.83% increase over the last twelve months as of Q1 2024, showcasing its expanding influence in Latin America.
InvestingPro Tips suggest that Auna's net income is expected to grow this year, aligning with the company's strategic initiatives like OncoSalud to increase healthcare accessibility. Additionally, the company has seen a significant return over the last week, with a 8.85% price total return, reflecting positive investor sentiment following recent developments.
Despite the lack of dividends and profitability over the previous twelve months, analysts predict Auna will be profitable this year, which could further enhance its market position. For those interested in a comprehensive analysis of Auna, InvestingPro offers several additional tips, which can be accessed on the platform. To enrich your investment strategy with these insights, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.
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