Tag: omada

Chronic Care Startup Omada Files for IPO

Posted on by Jason Barry

The IPO winter might finally be over after chronic care startup Omada Health filed to go public just a few short weeks after Hinge broke the ice.

The digital health darling is best known for its virtual diabetes management programs, but has grown into a comprehensive offering for hypertension, MSK (courtesy of its 2020 Physera acquisition), and a GLP-1 Care Track that drives sustainable results through behavior change.

The S-1 vital signs are mostly encouraging:

  • Omada generated $55M in Q1 revenue, up 57% YoY.
  • Gross margin is strong and getting stronger at 60%.
  • 2024 revenue climbed 38% to $170M.
  • Profitability remains elusive with a $47M loss last year.

Omada has more than 2,000 customers, primarily employers and health plans, with 679k members enrolled in at least one of its programs.

  • Members engage an average of 30 times per month, and over half are still active at the one-year mark.

A key part of Omada’s growth story is its partnership with Cigna, which made the GLP-1 Care Track a core component of Evernorth’s EncircleRx program for employers looking to manage the explosion of interest in the drugs.

  • Most of Omada’s 2024 revenue came directly from Cigna (55%), a double-edged sword considering that investors don’t exactly love having that many eggs in one basket.

Looking ahead, Omada plans to keep producing more evidence that its behavior change interventions make a meaningful impact on long-term success with GLP-1s.

  • The first wave of digital health IPOs – think Teladoc and Amwell – banked on convenience over outcomes and eventually got burned.
  • Omada is setting out to prove that the second wave can truly move the needle on outcomes and costs, making them non-negotiables rather than nice-to-haves.

The Takeaway

There’s a lot riding on these IPOs. If Omada and Hinge can stick the landing, it could be the spark that reignites investor confidence in digital health. No pressure, we’re all rooting for you.

Omada Raises $192M for Chronic Condition Management

Posted on by Jason Barry

Almost by definition, chronic conditions require continuous attention beyond what a doctor can give in a few visits every year. On top of this, confounding factors often cause patients to develop multiple chronic conditions simultaneously, creating a need for integrated whole person care like that delivered by Omada Health.

Omada Health recently closed a $192M Series E round to help treat polychronic patients through a single platform, boosting the startup’s valuation to $1B and making it a likely candidate for an IPO once the current market choppiness (to put it lightly) begins to subside.

  • Since initially developing its platform for prediabetes management in 2011, Omada has expanded its virtual services to other treatment areas such as hypertension, behavioral health, and musculoskeletal conditions.
  • Omada’s programs combine virtual support from a personalized care team with connected remote monitoring devices, which feed data into the Omada Insights Lab to personalize interventions and drive behavioral change.
  • The company currently serves 1,700+ employer and health plan customers (up from 1k in 2019), with multi-product contracts accounting for 32% of last year’s new business, growth that suggests customers are embracing Omada’s single-platform approach. 
  • The latest funding will go towards hiring, integrating more point solutions into a unified service, and investing in the Omada Insights Lab to continue tuning its data-driven interventions.

The Takeaway

Omada’s single-platform strategy for treating multiple chronic conditions could give it an edge against a crowded landscape of competitors focusing on more specialized treatments, including Verily subsidiary Onduo and Livongo / Teladoc.

The more conditions Omada can bring onto its platform, the more comorbidity data it can feed into the Omada Insight Lab, driving its flywheel of more data leading to improved engagement, more behavior change, and ultimately better outcomes.

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