By Josh Beckerman

 

Ontrak Inc. shares were recently down 49% to $30.31 as the company said its largest customer is terminating its participation status effective June 26.

Benchmark Research, which identified the customer as Aetna, said its rating and price target are under review.

The Ontrak platform helps treat health plan members with unaddressed behavioral health conditions that cause or exacerbate diseases such as diabetes, hypertension and coronary artery disease.

The company said "the relationship with our Ontrak-A customer was unique, because they evaluated Ontrak on a provider basis, not as a vendor as do all of our other health plan partners. As such, the customer evaluated our performance based on our ability to achieve the lowest possible cost per medical visit, and not on our clinical outcomes data or medical cost savings, which were meaningful and significant."

Ontrak said "unlike our other health plan partners, we interacted only with the behavioral health division, with no involvement from the medical division of the plan."

Ontrak said "we are proud of the fourth-quarter expansions we have made with our other existing health plans and recently signed contract renewals with current customers." The company said fourth-quarter revenue was $29.3 million, up 149%.

RBC Capital downgraded Ontrak to sector perform from outperform and reduced its price target to $32 from $82.

 

Write to Josh Beckerman at josh.beckerman@wsj.com

 

(END) Dow Jones Newswires

March 01, 2021 13:27 ET (18:27 GMT)

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