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Transcarent’s Valuation Soars Past $1B. Hear Why Glen Tullman Says It’s More Than Worth It.

By JESSICA DaMASSA, WTF HEALTH

Transcarent raises a whopping $200 million Series C funding round that values the year-ish old business at over $1.6 billion – valuing the up-start higher than quasi-competitor, Accolade, which is sitting on the NASDAQ with a $1.3 billion dollar market cap. Executive Chairman & CEO Glen Tullman shares some very revealing details about the round, why he’s deliberately added leading hospital systems onto his cap table, and what he’s got to say to the doubters who might question whether not Transcarent is a billion-dollar business just yet. (Spoiler alert: Glen says Transcarent didn’t even take the highest valuation they were offered…)

The investors are interesting for all those who want to read into the strategic messaging there: late-stage Livongo investor Kinnevik led the round alongside Human Capital and Ally Bridge Group, existing investors came back in, and, probably most surprising, are hospital systems Northwell Health, Intermountain Healthcare, and Rush University Medical Center. Apparently, other hospitals wanted in too but missed the chance thanks to a tight timeline. Glen explains his rush and why the capital is essential to further build out Transcarent’s offering in light of the market opportunity he’s seeing among employers.

This is a payment model innovation play, folks, that is basically arming those large, self-insured employers with the bargaining power and healthcare ingenuity of Glen Tullman, and what he says is the best executive leadership team he’s ever assembled. The pieces are certainly starting to come together, and it looks a lot like a new age payer to me. Transcarent’s basically got the prescription drug pricing power of a PBM in its relationship with Walmart… a national network of top-end health systems who are either partners or have skin in the game thanks to this funding round… the centers of excellence business it bought with BridgeHealth… AND some ‘coming soon’ care-at-home, cancer care, and behavioral health offerings Glen teases us about here. All that is offered to employers at full risk to Transcarent, which takes no copays or coinsurance from members, doesn’t charge any per-employee-per-month fees to their employers, and is keeping providers happy with payment up-front. If it’s not a payer because it’s better than our current definition of a payer, that might be the only reason why!

Still, Glen tells us that partnerships with some of the market’s “most innovative” payers are coming soon, along with new customer announcements. And, what will he spend this $200 million on to further build-out Transcarent’s offering? I’m not afraid to ask if there’s a chronic condition management co he’s got his eye on acquiring!

WTF Health: Inside the One Drop – Bayer Collaboration: New Cardiovascular Disease Product Is Just the Beginning

By JESSICA DaMASSA, WTF Health

Bayer’s $98M co-development-plus-investment in One Drop from August 2020 has yielded its first new product: a highly-personalized, AI-powered digital program aimed at preventing cardiovascular disease. While the solution itself is impressive in terms of its predictive analytics and integration into One Drop’s chronic condition precision health platform, what’s really remarkable about this milestone is that it demonstrates what’s possible when a pharma co and health tech startup are truly aligned as businesses, from R&D to go-to-market.

Bayer Pharmaceuticals’ CIO and Head of Digital & Commercial Innovation Jeanne Kehren and One Drop’s CEO Jeff Dachis take us inside their collaboration, with a very candid conversation about how their two orgs have not only developed a new product here today but how they’ve established a solid foundation for a working relationship that’s poised to revolutionize chronic care and define a new market around precision health.

We talk strategy: for Bayer-One Drop… for what the “digital disruption” will bring to pharma… and for “putting a lab on everybody’s arm” via One Drop’s sensor that’s under development. This chat reveals how the thinking behind incumbent-disruptor partnerships has truly evolved, and what it will mean for bringing digital technologies into healthcare in a big and meaningful way. For me, hearing Jeanne say, “it all starts with pharma being ‘self-aware’” and that they need to “we stop slicing things into therapeutic areas and consider the individual” AND recognize that “not everything is going to be process-oriented and shaped like we do for drugs” is a sea-change from what we were hearing only a few years ago from pharma execs about partnering with health tech companies. Things are changing! Tune in to hear so much more.