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BFD Expert Voices - Health Tech Deals

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OB-GYNs are getting a virtual hand from Iron Health, a startup with a plan to bolster patient care with a digitally accessible medical team.

Why it matters: The company collected $4.5 million in seed funding from digital health incubator Redesign Health and March of Dimes' innovation fund, the latter's first investment, CEO Stephanie Winans tells Erin exclusively.

Details: Winans says Iron will use the funds to build out its tech platform and care model and launch two health system contracts by this summer.

The company plans to raise its Series A at the end of the year or in early 2024, she adds.

Driving the news: The American Congress of Obstetricians and Gynecologists projects a shortage of 22,000 obstetricians and gynecologists by 2050 and estimated that in 2017 half of U.S. counties lacked a single OB-GYN.

How it works: Iron offers health care systems and OB-GYN practices a virtual extension of their practice and gives patients virtual access to providers spanning primary care, behavioral health, weight management, postpartum and menopause care.

"We're really coming at this from the provider angle to solve the patient gaps in the women's health care system," Winans says.

"Having delivered babies for 25 years, I want to know where my patients are going for care, and I see [Iron] building this from the bottom up," says Elizabeth Cherot, chief medical officer for maternal and child health nonprofit March of Dimes.

"If it’s a hypertensive patient needing care during or after pregnancy — or beyond when it comes to the next pregnancy — I think that’s where women fall through the cracks, and Iron can help," Cherot says.

The backstory: The idea for Iron was birthed from a mutual desire from Redesign venture chair Lesley Solomon and Winans to build within the existing health care system, they tell Axios.

"Having been on provider side, my perspective was 'Let’s not build this from the outside. Let’s partner with the providers women trust most and enhance the work they’re already doing,'" Solomon says.

🏋🏽‍♀️ One fun thing: The company got its name as a nod to the fact that women require more iron in their diets than men and because it aims to strengthen the health care system for women.

State of play: Fueled by the Supreme Court's overturning of Roe v. Wade and increased awareness of provider shortages and gender-based care inequities, women's health startups last year attracted $1.16 billion, twice the amount they raised in 2020.

Fertility clinic operator and employer benefits provider Kindbody this month raised $100 million at a $1.8 billion valuation.

Women's mental and reproductive health tech startup Caraway last summer pulled in $10.5 million in seed capital.

Virtual maternal and family health unicorn Maven Clinic last fall collected $90 million in Series E funds at a valuation of $1.35 billion.

1 big thing: Iron offers a virtual hand to OB-GYNs

Illustration of a woman in a hospital gown made from a one hundred dollar bill sitting on an examination bed.

California will not renew a $54 million contract with Walgreens over the chain's decision to not dispense abortion pills in some states where abortion remains legal, Gov. Gavin Newsom's (D) office announced yesterday.

Why it's the BFD: In the wake of the Dobbs decision, health care entrepreneurs and investors alike are increasingly focused on providing reproductive care, particularly abortion care, Claire writes.

What's happening: On Monday, Newsom tweeted that California was "done" with Walgreens. At the time, it was unclear what "business" with the company the state was ending.

Brandon Richards, a spokesperson for Newsom's office, told Axios on Monday that "California is reviewing all relationships between Walgreens and the state" — it's possible that other actions could follow.

Details: The contract in question is between the California Department of General Services and Walgreens, and it allows the state to "procure specialty pharmacy prescription drugs, primarily used" by California's correctional health care system, according to Newsom's office's press release.

Under this decision, Walgreens will no longer provide medications to inmates in California's correctional system.

Newsom said in an interview with Politico that this is the first step in an "exhaustive review" of all state ties with the pharmacy giant.

The move was the fastest action the state could take as it evaluates its business with Walgreens "because the contract is due very shortly to expire," a Newsom spokesperson said this morning.

Walgreens did not immediately respond to Axios' request for comment.

State of play: Following the Supreme Court's decision last year to reverse Roe v. Wade, more employers are seeking to offer abortion and reproductive care.

In tandem, investor support has risen for companies offering those services.

Women's health companies Caraway, which raised an $10.5 million seed in July 2022, and Tia, which just secured an investment from Melinda French Gates' Pivotal Ventures, both aim to provide access to medication abortion.

The bottom line: If pharmacy incumbents definitively limit access to medication abortion, expect to see nimble digital pharmacies and virtual care providers act in their stead.

2. The BFD: California pulls $54M Walgreens contract  

Photo: David Paul Morris/Bloomberg via Getty Images

SimConverse, a Sydney-based health care simulation education startup, raised AU$1.5m in seed funding led by Folklore Ventures with participation from Artesian. https://www.simconverse.com/

Lifepoint Health, a Brentwood, Tenn.-based care delivery network, acquired four inpatient rehabilitation facilities from Everest Rehabilitation Hospitals, a multi-specialty rehabilitation hospital company, in Longview, Texas; Temple, Texas; Rogers, Arkansas and Cincinnati, Ohio. https://lifepointhealth.net/ 

Ro, the digital pharmacy valued north of $6b by VCs, tells Axios that it has no plans to go public in 2023. In 2021, it explored a SPAC merger. https://ro.co/pharmacy

3. Deals o' the day

Spring Health promoted former SVP of medical affairs Mill Brown to chief medical officer.

Koala Health named former Amazon Pharmacy director of operations Chris Pickering COO.

4. It's Personnel

Walgreens Faces Blowback for Not Offering Abortion Pill in 21 States — NYT

Sam Altman invested $180 million into a company trying to delay death — MIT Tech Review

Long COVID: A recipe for recovery — Axios

5. Your daily dose

Illustration of a repeating pill bottle pattern with one rolled up newspaper.

It's Thursday, Health Techies, and you know what that means: Tomorrow is Friday!

💸 Situational awareness: Publicly traded life sciences and tech bank Silicon Valley Bank is launching a $2.25 billion common stock sale, plus another $500 million of depository shares, and said General Atlantic is buying $500 million of common stock in a separate transaction.

Join Pro in Chicago! Axios Pro is holding a subscriber-exclusive happy hour March 22 in Chicago. RSVP now.

🧊 Erin is heading to Iceland next week for five days of rugged van-tripping.

🥳 Thanks for reading, and extra thanks to newsletter editor Claire Rychlewski and copy editor Brad Bonhall. Please ask your friends, family and colleagues to sign up.

March 09, 2023

1 big thing: Iron offers a virtual hand to OB-GYNs