All Access

Health Tech Deals

Health Tech Deals Alerts

Alert

Standard

Health Tech Deals Thought Bubble

Thought Bubble

mustard

BFD Expert Voices - Health Tech Deals

BFD Expert Voices

Thursday's here, alongside brutal allergies in the Northeast.

⚖️ Situational awareness: A ruling yesterday from Delaware Chancery Court called on Johnson & Johnson to shell out another $1 billion, in what appears to be the largest legal reward ever granted in an investor earnout dispute, Dan Primack writes.

Wisp, a sexual and reproductive telehealth provider, is profitable and has its eyes on growth opportunities, CEO Monica Cepak tells Axios.

Why it matters: There will most likely be consolidation in the space over the next few years.

"We are always looking at opportunities to partner with the right strategic brands in the market and I wouldn't be surprised if we are active in M&A."

How it works: Wisp offers care for women in all 50 states with fertility, menopause and at-home testing.

"Our long-term vision is to really become that go-to brand for all things sexual-reproductive health care, owning each major life stage of a woman's health care journey," she says.

By the numbers: Wisp has surpassed 1 million patients and achieved a 30% year-over-year revenue growth with less than $2 million in primary capital.

It has also achieved a four-year CAGR of 69% and, as of July, the annualized revenue run rate is nearly $80 million.

Wisp continues to launch new products and will be entering a new space in the coming months.

What's next: Wisp has aspirations of one day going public.

"Once the market stabilizes and the timing is right, I do see ourselves at some point following the footsteps of Hims and Hers and becoming a public company."

She hinted at the idea of going public in Canada first, as Well Health owns 53% of the company and is traded in the TSX.

"I think that's one path we'd go down, if the markets are right. We have also considered expansion into Canada," she says.

Telehealth provider Wisp eyes growth opportunities

Illustration of a physician's hand holding a stethoscope coming out of a laptop screen.

Thatch raised a $38 million Series A led by Index Ventures and General Catalyst, CEO Chris Ellis tells Axios exclusively. 

Why it's the BFD: Individual Coverage Health Reimbursement Arrangement (ICHRA) law enables employers to provide tax-free dollars that reimburse employees who purchase their own health insurance plans.

Zoom in: New investor SemperVirens and The General Partnership also participated along with existing investors Andreessen Horowitz and Avid Ventures.

The company raised $6.25 million in two seed fundings in 2022 at a $25 million valuation, per PitchBook.

How it works: Thatch combines fintech and health tech solutions to create a unified interface for health care spending.

Features include simplified budget setting and fund allocation for employers, personalized plan selection tools for employees, integration of tax incentives and credits and cost savings through pooled buying power.

The big picture: Historically, health benefits were selected and offered by employers as a retention incentive. 

But gig work is increasing and employees are changing jobs more frequently than ever — with most staying less than four years. 

What's next: The plan is to aggressively expand the broker channel and create more partnerships with health insurance companies and payroll companies.

Thatch acquires customers from two avenues: direct business and a broker channel. 

"The growth engine needs to be in that efficiency range where we're actually not losing money to acquire customers," Ellis says.

This funding round provides several years of runway.

What they're saying: "We see the parallels here to the movement from defined benefit to defined contribution with 401K," says Alex Tran, managing director at General Catalyst.

"Just having the portability, being able to make your own choices, we think that'll happen in health care. The nature of work is changing and there's a lot of tailwinds, not just around ICHRA, but also the individual market is really robust, now that there are 22 million lives covered."

Thatch takes in $38M for ICHRA health benefits

Illustration of a caduceus with a price tag

Want more health tech deals? Check out the Axios Pro Deals Tracker.

• Bansk Group acquired Foundation Wellness, a Wadsworth, Ohio-based maker of orthotics products, from Gridiron Capital. Go deeper

• Birch Hill Equity Partners agreed to buy the Rexall and Well.ca pharmacy businesses from McKesson. (NYSE: MCK). Go deeper

• Affinity Equity Partners agreed to sell Malaysia's Island Hospital for $898m to IHH Healthcare. Go deeper

• GTCR and Golden Gate Capital are looking to sell Antylia Scientific, a Vernon Hills, Ill.-based lab equipment supplier that could fetch more than $2b, per the FT. Go deeper

• MyndYou, a New York provider of conversational AI solutions for health care, raised funding from WindRose Health Investors. myndyou.com

• EQT is in advanced talks to buy GeBBS Healthcare Solutions, an LA-based provider of health care BPO services, from ChrysCapital, per the Economic Times. Go deeper

• Covr, a Salt Lake City-based scheduling software company, acquired Data IQ, a Fort Worth, Texas-based business intelligence company. RF Investment Partners and Greenridge Growth Partners invested. Go deeper

Deals o' the day

• Adam Farren was promoted from president and chief operating officer to CEO at Canvas Medical. Go deeper

• Quincy Weatherspoon was promoted to VP and general manager of point-of-care solutions from VP of sales and marketing at Flatiron Health. Go deeper

• Alex McNutt, former CEO of Pirtek Europe Group, joined Halifax Group as an operating executive. Go deeper

• John Snyder, former CEO at Sanford Health Plan, joined Wellth as chief operating officer. wellthapp.com

It's Personnel

⚖️ Hospitals' legal win shows HIPAA's limits in shielding patient data — Axios

🗜️ California Senate passes bill to clamp down on PE health care deals — WSJ

🧑‍⚕️ Health worker shortages forecast thru 2028 — Axios

Your daily dose

Illustration of a weekly pill dispenser box with a newspaper called "daily dose" in each compartment.

⚾️ George, a Red Sox fan, enjoyed six weeks of this season.

🙌 Thanks for reading, and extra thanks to newsletter editor George Moriarty and copy editor Egan Millard. Please ask your colleagues, friends and family to sign up.

1 big thing: Telehealth provider Wisp eyes growth opportunities

2. The BFD: Thatch takes in $38M for ICHRA health benefits

3. Deals o' the day

4. It's Personnel

5. Your daily dose

topics

politics-policy

epstein-files

donald-trump

2026-midterm-elections

immigration

behind-the-curtain

race-and-equity

technology

privacy-tech-regulation

automation-and-ai

September 05, 2024

1 big thing: Telehealth provider Wisp eyes growth opportunities