Matthew has been out at the Going Digital Behavioral Health reception meeting all of Jessica’s fans, and discovering what they like about the show! Meanwhile a big funding round for Carebridge ($140m), with more $$ for Bicycle Health ($50m probably not to be spent on bikes) & Nava Benefits ($40m). Plus LeanTaas gets bought by private equity group Bain Capital.
Big Health’s Softbank Money, FDA Board Member Send Strong Signals About Digital Therapeutics Market
By JESSICA DaMASSA, WTF HEALTH
With a $75 million investment from Softbank last week, and the addition of former FDA Deputy Commissioner Dr. Anand Shah to its Board of Directors this week, Big Health has sure kicked 2022 off with some noise! But, this is more than just big news for Big Health as CEO Peter Hames is here to tell us. This is a story about the market potential for an all-tech approach to mental health care, AND an important endorsement for digital therapeutics – specifically, those that do NOT require a prescription.
Big Health sits at the intersection of two of the hottest health-tech markets: digital mental health care and digital therapeutics. Its approach, via apps Daylight (for anxiety) and Sleepio (for insomnia), has been flagged as unique because 1) unlike other leading digital mental health companies like Headspace Health or Lyra Health, Big Health’s approach to care is tech-driven and does not depend on coach or clinician intervention, and 2) unlike its digital therapeutics rivals, Pear Therapeutics or Click Therapeutics, Big Health’s business model isn’t relying on prescriptions to get paid.
Big Health is, in other words, proving the market potential for a different “breed” of tech-first, PBM-backed digital therapeutics, and I ask Peter about it head-on as we discuss Softbank’s investment. The mega-fund has placed bets on all sides now, having invested in Cerebral, which delivers clinician-first mental health care and prescription medication, and prescription DTx company Pear, which went public in December 2021. So, what should the market make of the fact that Softbank sees room for Big Health alongside Cerebral and Pear? How have high-profile deals with CVS Health and the NHS in Scotland proven out the model? And, what does the addition of Anand Shah (and his insider perspective on the FDA’s sentiment toward digital therapeutics) indicate about what’s ahead when it comes to the regulatory environment for DTx in the future? So many market dynamics at play, so much to talk about!
#HealthTechDeals Episode 4: Wheel, Topography Health, Lyra, and Big Health
Who is going to get to the end of the alphabet first? Covid-19 or Lyra Health? Jess and I talk about a Series F, some big healthtech deals, and more: Wheel gets $150 million; Topography Health gets $21.6 million; Lyra gets $235 million; Big Health gets $75 million.
-Matthew Holt
Big Health’s CEO: Working With Big Healthcare (CVS) & Big Pharma (as a DTx) on Mental Health
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.
Health in 2 Point 00, Episode 130 | DispatchHealth, BrightInsight, Cedar, Big Health, Redox & Plume
Sadly conferences have all gone digital, but Jess and I are still here covering deals on Health in 2 Point 00. On Episode 130, DispatchHealth gets $136 million, providing in-home health care by sending a tech to your house, BrightInsight gets $40 million to help biopharma and medtech companies leverage connected devices and develop digital health tools, Cedar raises $102 million for their medical billing software, Big Health raises $39 million for digital mental health tools Sleepio and Daylight, Redox lays off a quarter of their staff, and Plume raises a $2.9 million seed round, providing telehealth for trans individuals. —Matthew Holt
