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November 20, 2023

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1 big thing: Progyny to birth new products across fertility, repro health

Illustration of a pregnancy test with a dollar sign appearing on the screen.

Illustration: Gabriella Turrisi/Axios

Amid a booming fertility market, Progyny is expanding its reach to touch areas like menopause and male infertility, CEO Pete Anevski tells Axios.

Why it matters: Globally, fertility alone is an $8 billion opportunity, while the surrounding reproductive market has gained significant traction as well, Aaron writes.

Driving the news: Progyny reported Q3 earnings earlier this month, reporting a quarterly revenue boost of 37% to $281 million.

  • Adjusted EBITDA increased by 43% to $50 million.

What they're saying: "It does not seem like people are cutting back on benefits and we saw 20% of clients add an offering to their existing benefits," Anevski says.

  • "We will continue to explore other adjacencies that are focused on women's health or a segment that is underserved in women's health and also in family building," he says.
  • Progyny will launch products that address menopause, postpartum issues, maternal health, and pre-conception in January, with a male infertility offering planned after that.

What's next: While no acquisitions are imminently on Progyny's radar, the company continues to look at M&A regularly.

  • "Valuations continue to be frothy, given what's happening in the economy and funding, we will explore options and would love to find to something that makes sense."

Meanwhile, though Progyny started in the employer space, the company recently penetrated government plans.

  • "We got our foot in the door in the government space, with a population of 300,000 lives and this will be important for the future," Anevski says.

State of play: Next year will mark Progyny's ninth in the market — and over that almost decade, the fertility and family-building space has ballooned.

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