AAA Omada Health embraces $57m

Omada Health embraces $57m

Life sciences investment firm Perceptive Advisors has provided an amount reported by CNBC to be $57m in funding for Omada Health, a US-headquartered illness management platform developer backed by several corporates.

Omada has used $30m of the cash to fund the acquisition of Physera, the US-based creator of a musculoskeletal injury management app that had raised $10.8m in funding from investors including health insurance association Blue Cross Blue Shield.

Founded in 2011, Omada provides an app-based service that helps users manage health conditions including diabetes, hypertension and now musculoskeletal issues in addition to behavioural health.

The company had secured about $200m in funding altogether, prior to an investment of undisclosed size by Intermountain Ventures, the corporate venture capital arm of healthcare provider Intermountain Healthcare, in October 2019.

Omada received $73m four months earlier, in a round featuring pharmaceutical firm Sanofi and care providers Kaiser Permanente, Cigna and Providence Health & Services, through Sanofi Ventures, Kaiser Permanente Ventures, Providence Ventures and Cigna Ventures respectively.

Wellington Management led the June 2019 round, which included Andreessen Horowitz, US Venture Partners (USVP), Civilization Ventures and Norwest Venture Partners (NVP).

Cigna had already led a $50m round for the company in 2017 that also featured Sanofi Genzyme BioVentures, Kaiser Permanente Ventures and Providence Ventures as well as health insurance provider Humana and GE Ventures, part of power and industrial technology producer General Electric.

DRX Capital, a joint venture by pharmaceutical firm Novartis and mobile chipmaker Qualcomm, filled out the round along with USVP, Andreessen Horowitz, NVP and Civilization Ventures.

Omada had previously raised $48m in series C funding from GE Ventures, Humana, Providence Health & Services, DRX Capital, NVP, Andreessen Horowitz and USVP in 2015.

Andreessen Horowitz led the company’s $23m series B round the year before, investing with Kaiser Permanente Ventures, USVP and The Vertical Group. Its early backers include Aberdare Ventures, Kapor Capital, New Enterprise Associates, TriplePoint Capital and Rock Health.

Founded in 2015, Physera provides one-to-one assistance with musculoskeletal issues through a telehealth offering physical therapy and help for muscle and joint pain.

The company secured $8m in a March 2019 series A round led by Blue Cross Blue Shield vehicle BlueCross BlueShield Venture Partners, following $2.8m in seed capital from Lux Capital, Expa, Innovation Endeavors, Slow Ventures and ID Ventures in 2017.

By Robert Lavine

Robert Lavine is special features editor for Global Venturing.

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