New Research Authentidate

Updated Executive Informational Overview Released on Authentidate Holding Corp.

1 Minute Read

After the close of business today, we released a new report on Authentidate Holding Corp. (ADAT-NASDAQ). We first initiated coverage on Authentidate in March 2009 and have watched the company expand greatly since then. Its flagship product is Inscrybe® Healthcare, which provides a means for healthcare organizations and other enterprises to increase revenues, improve productivity, enhance patient care, and reduce costs by eliminating paper and manual work steps while enhancing regulatory compliance. During the past year, Authentidate has announced 11 new projects for Inscrybe® Healthcare, which include sales to home medical equipment companies, home healthcare service agencies, and respiratory products and service institutions.

As well, the Company has ramped up commercialization of a telehealth product line, ExpressMD™ Solutions, which has added at least four new clients in the past six months. In addition to an existing cash position of roughly $1.7 million (plus deferred revenue of $1.1 million) at September 30, 2010, Authentidate raised a further $4.5 million in October 2010.

Today’s report—a 64-page, very thorough depiction of Authentidate, its products, markets, customers, competitors, and financial position—is available free of charge on our website at, as well as through several of our distribution partners: CapitalIQ, Bloomberg, Yahoo! Finance, Reuters, etc.

  • Roughly 31% of all U.S. healthcare costs are related to paperwork, which Authentidate believes equals over $600 billion in annual administrative spending that could reach $1.3 trillion by 2017. In addition, the telehealth market is expected to expand 5.9% annually to approximately $12 billion by 2012, with in-home remote patient monitoring potentially becoming a $4 billion to $6 billion market by 2013.
  • Authentidate may benefit from recent federal healthcare reform as well as trends to reduce costs, shorten hospital stays, emphasize wellness and preventive care, and automate healthcare records and processes. If most hospitals and doctors’ offices adopted workflow and other IT solutions, the potential savings for inpatient and outpatient care could average over $77 billion/year.
  • In customer case studies, Inscrybe® Healthcare has improved productivity, reduced approval and reimbursement cycle times, and provided a verifiable transaction audit trail for increased compliance. In one case study, Inscrybe® decreased document turnaround time from between 20 and 22 days to an average of five to seven days and improved document capacity on a monthly basis by 30% to 40%.