UpHealth (NYSE: UPH) recently announced the sale of its pharmacy business in order to fuel its behavioral health and integrated care programs.

The Delray Beach, Florida-based company plans to sell its pharmacy assets, Innovation Group Inc (IGI), to Belmar Pharma Solutions for roughly $56 million. The new funds are expected to help the company focus on its three remaining business groups: a cloud-based integrated care management platform, virtual care infrastructure and behavioral health services.

“Today’s announcement is the result of a commitment to our focus on building a modern integrated platform based on our Telehealth, Integrated Care and Behavioral Health businesses,” Sam Meckey, Upward Health CEO, said in a statement. “This comes on the heels of a complete rationalization and transformation of our business.”

The goal is to establish a solid foundation as a technology and technology-enabled services business that can sustainably scale, Meckey added.

“The divestiture of the well-performing IGI represents a major step forward in sharpening our focus, and a significant milestone as we concentrate on the segments with the greatest opportunity for growth,” he continued.

UpHealth’s behavioral health program includes services for mental health issues and substance use disorders. Its services include telehealth, residential, intensive outpatient, outpatient, detox, medication-assisted treatment and partial hospitalization programs.

The new funds will also help the company focus on its integrated technology platform. The company’s integrated health management platform, Syntranet, allows clinicians to share information, coordinate care and manage care use.

UpHealth went public in 2020 through a three-way SPAC merger with GigCapital2 and Cloudbreak Health. The combined enterprise was valued at more than $1 billion.

Despite early momentum, its stock has tanked over the last two years. When the company went public in 2020, the stock was worth roughly $100 per share; the stock has tumbled to under $2.50 per share in early 2023.

In addition to focusing on its behavioral health and technology business, the sale will help the company pay off some of its debt.

“We will use a substantial portion of the proceeds from this sale to invest in our core offerings to drive growth, but will also offer, in accordance with our indenture, to use a portion of the proceeds to pay down some portion of our secured debt,” Meckey said. “2023 is a recalibration year for UpHealth and execution of our strategic vision is our top priority.”