Today on Health in 2 Point 00, Jess is in Jacksonville hanging out with Jackson the dog and trying to replace me with @barkyboy. On Episode 153, we cover the biggest IPO we’ve seen yet—GoodRx—with a valuation of $18 billion, which is more than Teladoc, Livongo, and even Cardinal Health. In other news, Olive gets $106 million bringing their total to $220 million; Olive is a back office automation system using AI for hospitals and this round is practically financed by royalty. Bright Health gets $500 million for their health plan; they’ve raised about $1.5 billion and are planning to expand into more markets. Finally Osso VR raised $14 million in a series A, helping surgeons practice performing surgeries through their VR platform. —Matthew Holt
By JESSICA DaMASSA, WTF HEALTH
Digital Mental Health startups continue to scale up — in customers, revenues, and investments — as the covid19 pandemic wears on. One of these companies, Ginger, has tripled its revenue this past year, expanded its client base to count more than 200 health plans and self-insured employers, and, for good measure, just added a fresh $50M Series D to their coffers. How much more money can investors put into digital mental health startups? Are things “frothy” in this space, or is investment just “catching up” to meet a latent demand that’s just really been brought to light? And, what is one of this category’s leaders planning to do now that they’re extra flush with cash? (Don’t forget, they’re sitting on a $35M round that closed late 2019…)
Ginger’s co-founder & COO Karan Singh and CEO Russell Glass join us to weigh in on the mental healthcare market’s state-of-play, including the buzz around their own business as both a potential acquisition target and a potential acquirer of additional behavioral health tech. We cover everything from investment to healthcare incumbent’s recent cries for more clinical validation, but my favorite part of this whole interview is when we start talking about the competition and tackle Lyra Health’s recent $100M raise and $1.1B valuation. Tune in around the 15:55-minute mark for some very DETAILED competitive analysis about Lyra-versus-Ginger from Ginger’s own CEO.
As this market gets more crowded, competition heats up, and healthcare consumers receive the benefit of more solutions to access at lower prices, Karan and Russ also help me speculate on what’s ahead, including whether or not they think we’ll see a “digital mental health equivalent” of a massive game-changing-market-moving deal like we saw when Teladoc merged with Livongo to shake up of both the virtual care and chronic condition management spaces.
By JESSICA DAMASSA
Despite the fact that kids make up 20% of our national patient population and that their parents are likely just the tech-savvy market of health consumers that most digital health companies are targeting with their own virtual care solutions, very little has been done to use technology to ‘transform’ the way that they take care of their kids. One of the founders hoping to push this market into a growth spurt is Naomi Allen, co-founder & CEO of pediatric behavioral health company Brightline.
From seed to Series A in just 8 months ($25M total funding), Brightline is already looking to scale out its full-stack clinical model to help tackle the behavioral health issues that are often under-diagnosed and under-treated in kids. Naomi says that 75% of all severe mental illness manifests before age 14, but that only 1 in 5 kids will ever even get a behavioral health diagnosis. And more shocking? Of those that are diagnosed, only 1 in 5 of those kids will ever even receive any care.
The supply-and-demand equation is off — stymied not only by a clinician shortage, but by literally poor reimbursement from health plans concerned about the lack of quality metrics, measurements, and processes in pediatric behavioral health despite the prevalence of those kinds of quality guidelines around adult mental health care.
So, how is Brightline going to fix this? Technology, clinicians, coaches. A full-stack clinical model with a “scaffolding” of support for parents built around it using telehealth, digital tools, and, for those health plans, metrics. Tune in to find out more about their business model, what Brightline’s kids are saying, and how you can find their services yourself if you think your child might need help.Continue reading…
We are forgetting about health tech, and celebrating Chicago-oo! Just kidding, today on Health in 2 Point 00, Jess asks me about Truepill getting a 75M Series C after just closing their B, Sana Benefits getting $20.8M, and Decent getting $10M, both of which are in the space of health benefits & insurance for small business have raised funding, MDLive closing a $50M round for their Virtual Primary Care (but weren’t they going public?), Owl Insights getting $15M from Ascension and Blue Ventures, and Boehringer Ingelheim & Click Therapeutics working on a $500M deal together on a DTx platform for Schizophrenia patients. –Matthew HoltContinue reading…
It’s Health in 2 Point 00’s 150th Episode or Sesquicentennial anniversary! On this episode, we have the return of Softbank money—$100M goes to Biofourmis platform for AI & Clinical Trials. Next, Amwell prices their IPO at $14-16 a share, and Grand Rounds raises $175 million led by the Carlyle Group. Finally, we have real foul play to report – former Zocdoc CEO Cyrus Massoumi filed a lawsuit accusing his fellow cofounders and CFO of foul play, so Jess asks me to dish the dirty details. —Matthew Holt
On today’s Health in 2 Point 00, Jessica is distracted playing video games, and rants about the unbearable maleness of wearables. Meanwhile Komodo Health raises $50m for more analytics (presumably of patients playing Pong), Picnic Health gets $25m as PHRs will not go away, Hazel Health gets $33 million to take telehealth back to school, and then there’s Amazon Halo — and our stars’ alter egos make an appearance — Matthew Holt
By JESSICA DaMASSA, WTF HEALTH
Big Health bills itself as a “complete 24-hour solution for mental health,” offering Sleepio to those who have trouble sleeping and Daylight to those who suffer from worry and anxiety during the day. Fresh off a $39M Series B in June 2020 (total $54.3M) — and having just landed Daylight onto CVS Health’s digital health formulary to join Sleepio there as a “point solution” payors can easily integrate into their benefits offerings — co-founder & CEO Peter Hames stops by for an ENORMOUS conversation about the ‘state-of-play’ for digital mental health companies like his own. Has CVS Health’s digital formulary made it any easier to contract with employers and get the attention of health consumers? And, what of the attention being paid to Big Health itself? As we hit “peak platformization” in digital health, is the company a prime acquisition target? (Note: Omada Health’s CEO Sean Duffy is a friend and investor and we get a good laugh around the 15-minute mark when we fact-check some rumors… ) Finally, another “insight highlight” worth mentioning: some candid conversation on what’s happening in digital therapeutics (DTx) as Peter is the Chair of the category’s industry org, the Digital Therapeutics Alliance. Does Big Pharma still have an appetite for DTx despite some rough news about partnerships with startups in recent months? You’ll want to tune in around 17:30 for more on that too.
Today on Health in 2 Point 00, Jess might be a little wary of my colonoscopy story, but it reveals just how well insurance companies communicate. In this episode, Jess and I cover GoodRx filing an S1 to go public, Trellus Health raising $5 million in seed funding for its platform for inflammatory bowel disease (IBD) and other chronic conditions, Klara Health raising $15 million for patient engagement, and Castor raising $12 million for its clinical trial platform. —Matthew Holt
By JESSICA DaMASSA, WTF HEALTH
One Drop just landed a $98.7M deal with Bayer — and we got the details from CEO Jeff Dachis. The timing of this deal is nothing short of impeccable: less than a year after the life sciences giant led One Drop’s Series B with a $40M investment, and amidst a veritable funding frenzy aimed at growing digital health companies focused on chronic condition management. So, how is One Drop planning to use this investment (part Series C/part development fees) to expand their data science platform known for diabetes and hypertension into some of Bayer’s biggest areas of focus — cardiology, oncology, and women’s health? And how does this even-closer relationship with such a consumer health brand help One Drop further evolve the retail side of its go-to-market strategy? Don’t forget — One Drop is sold direct-to-consumer via CVS, Walmart, and Amazon in addition to the more traditional routes via employers and payers. It’s a full breakdown of the deal and a walk through the key points of differentiation Jeff sees as integral to shaping One Drop’s move for greater global market share.
Today on Health in 2 Point 00, Jess asks me about the big news that Google Cloud has entered into a partnership with Amwell and invested $100 million into the company—looks like their IPO is really a thing! OneDrop gets $98.7 million in a partnership with Bayer, following at $40 million partnership last November, in a funding and development agreement. Outset Medical files their S1 and is going to go public, looking for $100 million for their portable dialysis system, and finally Podimetrics raises another $8 million for their foot ulcer detection platform for diabetics. —Matthew Holt