Mostly good news this midweek…
Headspace gained some needed cash–a $105M senior debt facility–from Oxford Finance. The company can use it. Their more recent headlines were for layoffs (15% earlier this month) and the telemental health space, which boomed during the pandemic, now can best be described as challenged. Headspace expanded to the UK in January. As noted with the layoffs, Headspace never SPAC’d but after acquiring Ginger for a $3 billion valuation back in the crazy days of 2021, hasn’t had an easy time of it. Their financing will be used for expansion and for opportunities. The problem is that telemental health has too many lookalike/soundalike competitors including the 9,000 lb. elephants (see Teladoc) all going after the same targets–direct to consumer, enterprise, and health plan markets. It’s a rocky road to that cliché, a path to profitability. Business Wire, FierceHealthcare
Nextech was bought by TPG for a tidy $1.4 billion. Nextech is a healthcare IT company with cloud-based specialty EHRs, analytics, and practice management systems. Specialties they cover are dermatology, ophthalmology, orthopedics, plastic surgery, and med spa. TPG is investing in Nextech through TPG Capital, its US and European late-stage private equity platform. The exit was made by Thomas H. Lee Partners. TPG has previously invested in Lyric (formerly known as ClaimsXten), WellSky, and IQVIA. TPG release, FierceHealthcare
Teladoc had good Q2 news for investors, with a 10% boost aided by BetterHelp’s performance. TDOC beat The Street ever so slightly with a 10% quarterly revenue boost to $652 million. They also narrowed net loss to $65 million, or a loss of 40 cents per share. BetterHelp’s performance was up 18% in revenue, with $292 million in Q2, hardly dented by their $7.8 million FTC settlement in March. Integrated care was up 5% for $360 million in revenue. In Q2 2022, Teladoc took a $3 billion impairment charge as the second part of writing off its Livongo buy [TTA 30 July 2022] and their Q1 wasn’t much better with a $6.6 billion writeoff [TTA 4 May 2022]. It showed in TDOC’s share price which has been up about $5 since the announcement on 25 July. On the investor call, CEO Jason Gorevic is betting on BetterHelp and weight management [TTA 21 April] being introduced this quarter, though for the latter recent health concerns on Ozempic as a weight loss drug, insurers increasingly refusing to pay for it (Medicare does not, and it costs upwards of $1,000/month), and substantial competition from other weight loss players may cloud the outlook. FierceHealthcare, Q2 earnings
Peppermint appealing to older adults with online ‘clubhouses’. Out of NYC-based VC/developer Redesign Health , Peppermint’s purpose is to address senior loneliness through virtual clubs. Older adults can practice hobbies or contribute their knowledge as ‘experts’. Peppermint is kicking off with $8 million in seed funding partly out of Primetime Partners and partnering with senior centers affiliated with the Massachusetts Council on Aging (MCOA). This Editor wonders if $9.99 per month (nearly $120/year) with a 30-day free trial is a sustainable model for those minding their dollars in this inflationary time. Release, MedCityNews
AI pathology company PathAI is releasing 87 employees, according to a Massachusetts-filed WARN notice. Of the 87, 51 live in the Bay State with 36 mainly remote workers outside it. It’s considered to be one of Massachusetts’ largest health tech companies with an estimated 600 employees. The layoffs are effective 31 July. The company has had over $255 million in funding through a 2021 Series C including General Atlantic and Labcorp. (Crunchbase) One month ago, they added a new president of biopharma and chief business officer, Matt Grow (release). BostInno (paywalled), Becker’s
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