Healthcare consumerism is on the rise and individuals now expect convenience in each step of their care experience. Digital pharmacies like Medly are taking advantage of this shift. The New York City-based startup provides same-day delivery of prescription medications. Providers can send prescriptions to the Medly platform then patients book a time for home-delivery. Founded in 2017, the company is headquartered in Brooklyn and serves customers in the greater New York and New Jersey area. Medly recently announced a new Series A funding round led by Greycroft for an undisclosed amount. Following the footsteps of their competitor, Capsule, the startup plans to use the infusion of funds to expand its services throughout the US. Medly believes that through humanizing their service and free same-day delivery, they will be differentiated from their competitors.
Health care insurers are increasingly using wearables to engage and monitor the health and wellness of their members. For example, Aetna’s Attain and UnitedHealthcare’s Motion programs incentivizes beneficiaries to perform tasks designed to improve their health. Oscar Health’s new partnership with smartwatch app maker Cardiogram takes a different approach by improving access to care for those at risk of developing chronic conditions. Oscar Health is able to more effectively manage the health of its members through early disease detection by leveraging Cardiogram’s clinically proven artificial intelligence technology.
Oscar beneficiaires will be able to download and use Cardiogram Care on their smartwatch for free. After uploading the necessary insurance information, each user will be monitored for signs of diabetes and atrial fibrillation. If symptoms are detected, users will need to take further tests to confirm the diagnosis. If a previously undiagnosed condition is confirmed, the app will be able to refer the user to in-network physicians. As wearables slowly become more prevalent, having a clinical workflow leveraging smart devices can have dramatic implications on how we access care in the future.
The rapid digitization of healthcare is enabling the advancement of technology solutions aimed at providing quality home-based care for patients. One notable example is the Portuguese startup SWORD Health. The company provides patients suffering from musculoskeletal disorders with a digital physical therapy solution. Each patient is given a wearable motion tracking device, an AI-powered digital therapist, and a clinical portal where caregivers can track their progress. The company published two studies in the Journal of Medical Internet Research and Nature Scientific Reports last month, showing its digital therapy platform is more effective than standard rehabilitation at helping patients recover from total knee arthroplasty.
SWORD Health recently announced it successfully raised $8M in Series A funding, indicating continued investor interest in their AI-powered platform. The funding round was led by Khosla Ventures with additional participation from several unnamed angel investors. It plans to use the investment for further clinical validation, improving product engineering, and expanding its footprint in North America. Khosla Ventures founder Vinod Khosla states SWORD Health’s “end-to-end technical approach enables exponentially more efficient delivery of care to patients and payers.” By providing accessible and effective care to patients at home, SWORD Health’s digital platform may be a huge disruptor of the physical therapy landscape.
Digital health startups raised $8.1B from investors in 2018. However, with the exception of Roche’s $2B purchase of Flatiron Health and Amazon’s $1B acquisition of PillPack, there has been a lack of significant exits within the digital health landscape. In the past, many IPOs came from companies with business models familiar to Wall Street. For example, Veeva Health and AthenaHealth have a business model focused on selling cloud-based software while Fitbit focuses on selling devices.
Unlike in previous years, digital health companies planning to IPO have business models that emphasize combining technology and services. Livongo is a provider of chronic disease management services bundled with a blood glucose meter. It has hired Morgan Stanley, Goldman Sachs, and J.P. Morgan Chase to manage their IPO. According to Marc Albanese, senior director of research at CB Insights, “there hasn’t been a true digital health IPO,” putting a bit of pressure on Livongo. Undoubtedly, Livongo’s IPO performance will set the tone for how similar companies are received by Wall Street.
The increasing popularity of fertility trackers and other women-focused tech has spurred the growth of reproductive health companies with a digital focus. For example, Natural Cycles, the first birth control app to be CE-certified as a contraceptive in Europe, raised $30M in Series B funding back in 2017. Ava, maker of an ovulation tracking bracelet, also raised $30M in Series B funding early last year. NextGen Jane, a startup seeking to make it within the increasingly competitive reproductive health space, closed a $9M Series A funding round earlier this week. Leading the round was Material Impact. Additional investors include Access Industries, Viking Global Investors, and Liminal Ventures. NextGen Jane is planning to mail kits to women with a tampon they can send back and have analyzed. The Oakland, California-based startup will use the influx of cash to further its scientific dataset and prepare for a 2020 product launch. By providing women with accessible methods to understanding their reproductive health, NextGen Jane and other femtech startups will only continue to grow in the coming years.