JOGO Health is raising on a convertible note with a valuation cap of $20 million, discount rate of 20%, and an interest rate of 5%. For the 2020 fiscal year, the company had revenues of $65,390 in India and $0 in the United States. Based on the revenues generated in India, the company has a revenue multiple of 306 times, which is significantly higher than the healthcare industry average (which ranges from three times to six times). The valuation is unreasonably high for a company that hasn’t fully launched its products in the US. Thus, JOGO Health receives a low price score.

JOGO Health targets the US and Indian telehealth markets, both of which have high potential. COVID-19 triggered an increase in telehealth visits, and it is likely this trend could outlast the pandemic. The US telehealth market is worth $12.8 billion with a fast growth rate of 28%. It is expected to reach $43 billion by 2026. India’s telehealth market is growing at a rate of 39.6% and is expected to reach $10.6 billion by 2025. 

Granted, only a fraction of the total market will focus on treatment for neuromuscular disorders. But in such a massive and fast-growing market, JOGO Health has many opportunities to succeed. Additionally, JOGO Health uses business-to-business and business-to-consumer distribution models, which creates even more opportunities for the company to establish itself in the market. Given the market’s large size, high growth rate, and promising potential, JOGO Health’s market score is very strong.

JOGO Health co-founder and president Siva Nadarajah has more than 20 years of clinical and safety experience in the pharmaceutical industry. Nadarajah also has exit experience in the technology and healthcare field. His previous venture, Semantelli — an AI-based drug safety detection and social media analytics platform — was acquired by IQVIA, one of the world’s leading clinical research organizations. Such leadership experience, especially in the health field, should contribute significantly to the development of JOGO Health. Co-founder and CEO Sanjai Murali has experience in development and marketing technology solutions. Murali has served in leadership positions at AT&T, FedEX, and Velankani, which are all valuable experiences for the growth of JOGO Health. 

The rest of the JOGO Health team is composed of skilled professionals, including clinical researchers in various neuromuscular disease fields, engineers, and a large medical advisory board. Chief Scientific Officer Gary Krasilovsky has been a clinician and researcher for more than 30 years. He also worked as a senior physical therapist at New York University Rusk Institute for Rehabilitation Medicine. Head of Commercial Strategy Shanmuga Priyan has more than two decades of healthcare operating experience in Asia — specifically in the South Asian markets, which will prove valuable as the company targets Indian markets. The team also has other researchers with a variety of expertise, including urogynecology and rehabilitation. Additionally, JOGO Health’s advisory board includes professors from the Yale School of Medicine and Harvard Medical School. The team and board members are strong indicators of the technical and operational success of JOGO Health. So overall, JOGO Health receives a strong team score.

One of JOGO Health’s competitors is Hinge Health, which has received more than $400 million in funding. Hinge Health has partnered with more than 500 employees and health plans with big companies such as Philips and Tyson. Another top competitor is Kaia Health, which has more than 450,000 users around the world. Both Hinge Health and Kaia Health offer digital musculoskeletal therapy and symptom relief solutions, but only Hinge Health incorporates a wearable device. 

JOGO Health has some advantages over the competition. For one, Hinge Health and Kaia Health mainly focus on musculoskeletal care, while JOGO Health’s method has a broader focus. JOGO Health’s product can treat body pains and address pelvic health and cerebral palsy. JOGO Health’s product is also patent-protected, which makes it defensible. And the product is already FDA-cleared. FDA clearance is typically a massive hurdle for early-stage companies, so this is a positive signal for JOGO Health’s growth. JOGO Health also has a wider market than companies that operate only in the US, and its low capital intensity model will help its production scale in both countries. 

JOGO Health’s product has a unique and diverse use, it’s attacking a large market, and it has product defensibility. As such, JOGO Health receives a strong differentiation score.

JOGO Health has achieved several milestones over the past two years. The company initially focused on the South Asia market and has been gaining traction in India. By March 2021, the company signed with 20 hospitals in India and treated 2,000 patients. In December 2020, the company began a study for chronic back pain at Harvard. By June 2021, the study reached 50% recruitment, and the company signed contracts with two clinics in New York City. While it is still uncertain how the product will be received in the US, its performance thus far in Asian markets should give investors confidence. 

According to the company’s website, the current product, JOGO-Gx, is the first product to be commercialized. The company plans to develop nine more generations of JOGOs in the future to address even more health conditions, including cancer pain, chronic fatigue syndrome and migraines. The company has already raised more than $3 million on Wefunder and generated around $65,000 revenue in India in 2020. So overall, JOGO Health receives an above-average performance score.

There is some risk associated with an investment in JOGO Health. Several factors contribute to the elevated time risk. First of all, any healthcare technology must overcome regulatory hurdles, which take time to tackle. Additionally, JOGO Health needs to credential with insurance providers, which can take anywhere from two to four months. Although the company has already started the process, delays are expected due to the pandemic.

JOGO Health also comes with product risk. Initial tests seemed to produce good results, and the company has been successful in India. But it’s uncertain how effective and accepted its product will be in the US. 

The market also presents minor risk. Telehealth is a fast-growing industry in both the US and India. A large number of new companies enter the market each year, so JOGO Health will likely have more intense competition in the future. Although JOGO Health’s product is quite distinguishable from some established competitors, such as Kaia Health, competitors might develop new or similar products and capture some of JOGO Health’s target customers.

JOGO Health’s biggest issue is its product development and market acceptance. For one, it is unclear how the product will be accepted in the US market. In addition, the company has claimed that its technology could treat many different types of neuromuscular disorders. However, judging from the company’s website, the product is still in early-stage development, and JOGO Health has only treated a small number of patients so far. Hence, it remains to be seen whether the product will be as powerful as the company claims. 

Furthermore, only one of its products has been cleared by the FDA. The registration and approval process typically takes months, if not longer. JOGO Health will face many regulatory hurdles in its path to growth. Finally, there are many competitors in the space, including Hinge Health and Kaia Health — both of which are well established and have received millions in funding.

JOGO Health’s two target markets, the US and Indian telehealth markets, both have staggeringly high growth rates. Demand for telehealth services is unlikely to go away, even after the pandemic recedes. And considering an increased public openness to new, alternative, versions of medical treatment, a growing number of patients and clinics may start to adopt new technologies like JOGO Health’s. 

JOGO Health also has a strong team behind it. The entire team and advisory board consists of experts in various fields with decades of combined experience. Co-founder Sanjai Murali brings valuable leadership experience from AT&T, FedEX, and Velankani. President Siva Nadarajah sold his previous company to a clinical research giant, which indicates strong entrepreneurial skills. 

JOGO Health uses wearable technology, artificial intelligence, and virtual reality to treat neuromuscular conditions. The company’s device is connected to a patent-protected mobile app that provides treatment protocols and games that work on neuromuscular reeducation and movement coordination, leveraging the brain’s ability to rewire itself. 

JOGO Health’s performance thus far has proven impressive. The team has treated more than 2,000 patients, built partnerships with hospitals in both India and the US and begun generating revenue. JOGO Health also has a strong team, with one founder having a previous exit in the industry. The team has also put together a stacked advisory board with members from top tier research universities. The company’s product is fairly differentiated, which should help it compete. Finally, the team already holds a patent for its technology and has obtained FDA clearance.

However, JOGO Health is still quite early-stage and in a competitive market with a steep valuation. Competitors like Hinge Health and Kaia Health already have massive amounts of funding. The company will also have to face regulatory and adoption hurdles with each iteration of or branch off of its product. And at this point, its product has been launched only in the Southeast Asian markets. Therefore, JOGO Health has been rated a Neutral Deal by the KingsCrowd investment team.  

For questions regarding the KingsCrowd staff pick or ratings for this company, please reach out to support@kingscrowd.com. 

Analysis written by Bridget Sheng.