Today on Health in 2 Point 00, Jess pokes fun at me because my primary care provider has acquired a Medicare provider – One Medical buys Iora Health for $2.1 billion in stock. This deal is curious because these are two very different organizations. Next, HumanFirst (formerly Elektra Labs) raises $12 million in a Series A, bringing their total to $15 million, working on distributed clinical trials. Medallion raises $20 million in a Series A to address barriers for digital health providers around state licensing rules, and Aunt Bertha raises $27 million working on the social determinants of health and getting social care resources to patients. Finally, Grand Rounds and Doctor on Demand acquire Included Health, an LGBTQ+ focused care navigation platform. —Matthew Holt
Each week I’ve been adding a brief tidbits section to the THCB Reader, our weekly newsletter that summarizes the best of THCB that week (Sign up here!). Then I had the brainwave to add them to the blog. They’re short and usually not too sweet!–Matthew Holt
In this week’s health care tidbits, I can’t quite leave the $3.5bn Babylon Health SPAC investor document alone. Yes, it’s crazy but not as crazy as you might think. Essentially it’s saying that it’s going to be a better tech enabled version of Oak Street or Agilon. Babylon has put less effort into the medical group management side of the puzzle than Oak Street or Agilon but it hasn’t done nothing. It’s been running GP clinics in the UK for years and now has two Medicare Advantage networks in California w 52k lives. It only did $79m in rev in 2020 but that was presumably mostly in software. They’re aiming for $320m in rev in 2021 (presumably mostly from the medical groups) & $710m in 2022.
In comparison Oak Street’s forecast is $1.3bn in 2021 and $2bn in 2022. So Babylon is shooting to be 25% of its size. Today’s Oak Street market cap is ~$14,5bn, so 25% of that is close to the $3.5bn Babylon is trying to get investors to pay.
Then there’s the story, which is that the bot tech can reduce all types of patient health spend which will increase the margin. Of course their actual mileage may vary. I do love the chart from their investor prez, which not only assumes that they can reduce medical spend abut also that they get to keep those savings long term. I’m not sure the “Partner” in the chart below will be as convinced.
This was the cause of much hilarity on this week’s #THCBGang.
As I said crazy but not completely crazy. And you never know, maybe better care?
Today on Health in 2 Point 00, we’re talking about our new conference in September: Policies, Techies, & VCs: What’s Next for Health Care. On Episode 213, Jess ask me about some massive deals. Thirty Madison gets $140 million – they are now a unicorn. Babylon Health is going public via a SPAC – $575 million expected to be raised during this with a $3.6 billion valuation. Coming out of stealth, Intrinsic raises $113 million in the eCommerce space — and Dr. Oz is in this one. —Matthew Holt
Today at Health in 2 Point 00, Jess and I are presenting at the Going Digital: Behavioral Health conference today — tune in later for that. On Episode 212, our buddies at DayTwo get $37 million for the gut microbiome. Hello Heart raises $45 million, bringing their total to $68.2 million – this is for high blood pressure management. Pack4U, which is like the knockoff version of Pill Pack, raises $20 million. Swedish telemedicine company Doktor.se raises $50 million, and Curebase raises $15 million for decentralized clinical trials. —Matthew Holt
Today on Health in 2 Point 00, Jess gives us a little tour of Chicago before we dive into some deals. Noom raises $540 million, bringing their total to $657 million with a $4 billion valuation. What are they going to do now with all this money? Digital therapeutics company Akili raises $160 million – maybe this will bring them out of ADHD. Unmind, a mental health company out of the UK, raises $47 million, Eleanor Health raises $20 million for their addiction-focused mental health clinic, and finally Clearing raises $20 million in a Series A tackling chronic pain. —Matthew Holt
This week on Health in 2 Point 00, we’ve got big money, acquisitions, CVS Health starting its own decentralized clinical trials business, AND we’ve got Morgan Health. On Episode 210, Jess asks me about Babylon buying Meritage IPA, looking to add their digital front end to this doctors’ network, and Ro acquiring Modern Fertility for $225 million. Next, telehealth company Wheel gets $50 million in a Series B and digital pathology startup PathAI gets $165 million. Finally, SymphonyRM gets $25 million in a Series B. —Matthew Holt
Today on Health in 2 Point 00, we catch Jess on the road again! On Episode 209, Jess is shocked at Lyra’s $200 million raise, bringing their total to a whopping $675 million – and their valuation is somewhere in the $4 billion range. What does this mean for the mental health space? Next, DrFirst gets $50 million. They were doing e-prescribing back in the day, what are they up to now? Jasper Health raises $6.75 million for a new play in cancer navigation. Finally testing company Cue Health raises $235 million, bringing their total to $405 million, plus they’ve got some really big federal grants. —Matthew Holt
An email interview with the Co-CEO’s of Evidation Health
Over the last few weeks I’ve been conducting a back & forth email interview with Christine Lemke (L) & Deb Kilpatrick (R), the co-CEOs of Evidation Health. They raised $153 million in a Series E back in March (almost a small round these days!) but I wanted to understand a bit more about what the “new” Evidation was doing—Matthew Holt
Matthew Holt: Congrats on the latest funding. Clearly Evidation has evolved since its founding, but focusing first on the clinical trial study aspect, can you explain how the Achievement panel is structured? How was it put together? What are the typical ways that your clients use it, and what is the member experience?
Deb Kilpatrick: Our Achievement platform is the largest virtual connected research cohort in the United States, with more than 4 million users across all 50 states and representing nine out of every 10 ZIP codes. Through the platform, accessible via our app or through a browser, individuals have the opportunity to contribute to ground-breaking medical research in a number of ways: they can connect smartphones, wearables, and connected devices—think Apple Watches, Fitbits, CGMs, etc—that generate heart rate, activity, sleep quality, and other health-related data; they can connect health apps like Strava and MapMyFitness; and they can participate in surveys and provide patient-reported outcomes (PROs) of many forms.
And they do so with strong privacy protections for both data collection and data use, including use-case specific consents that can be sequential over time. This goes for new Achievers and those who have used the platform for years. And Achievers always have the option to remove themselves from any research project, and/or the platform altogether, at any time.
What do we do with that data? Evidation partners with leading health care companies, including nine of the top 10 biopharma companies in the world, to understand health and disease outside the clinic walls while measuring real world product impact. We’ve conducted virtual trials for almost a decade now, totaling more than 100 real-world studies across therapeutic areas.Continue reading…
Today on Health in 2 Point 00, the survey says digital health is optimistic! Find out more on the other side. On Episode 207, Jess asks me about Aetion getting $110 million bringing its total to $212 million working on real world evidence for pharma companies, and Indonesian telehealth company Halodoc gets $80 million. MSK startup Vori Health gets $45 million—can they compete with Hinge? Next, Heartbeat Health gets $20 million for cardiovascular health. Finally, Andreesen throws $10.5 million in a Series A to Memora Health which is a patient messaging system. Don’t forget to join us on Clubhouse tonight for more! —Matthew Holt
By MATTHEW HOLT & ELIZABETH BROWN
Last year was a remarkable time for digital health. Obviously it was pretty unusual and tragic for the world in general as the COVID-19 pandemic continued to wreak havoc. We mourn those lost, and we praise our front line health workers and scientists. But for digital health companies, in almost no time 2020 changed from fear of a market collapse to what became a massive funding boom.
But no-one has reported from the ground what this means for digital health companies, of which there are perhaps 10-15,000 worldwide with maybe 6-8,000 based in the United States. Despite the headlines, most are not pulling down $200m funding rounds or SPACing out. So working with professional services firm Wipfli, we at Catalyst @ Health 2.0 decided to find out what digital health companies experienced in this most extraordinary year.
Between Thanksgiving 2020 and mid-March 2021, we surveyed more than 300 members of the digital health ecosystem, focusing on leaders from more than 180 private (and a few public) digital health companies. We asked them about their market, their experience during COVID-19, and what they thought of the environment. We also asked them about the mechanics of running their businesses. The results are pretty interesting.
The Key Message: COVID-19 was very good for digital health companies–on average. Most are very optimistic but, despite the massive increase in funding since the brief (but real) post-lockdown crash, most digital health companies remain small and struggling for funding, revenue, and customers.
We also heard from investors, and a bigger group we called “users” (mostly payers, providers, pharma, non-healthcare tech companies, e-patients & consultants). While these “users” also saw a big trend towards the use of (and, to a lesser extent, paying for) digital health tools and services, they were not as gung-ho as were digital health companies or investors, who were even more optimistic.
The summary deck containing the key findings is below and there is more analysis and commentary below the jump.Continue reading…