- Lloyd Price
Five potential HealthTech IPO's in 2024: Omada Health, Hinge Health, Sword Health, Doctolib, Aledade
Exec Summary:
The HealthTech IPO market is expected to recover in the summer of 2024 with a number of factors now starting to build and support the case for public market listings.
First, the underlying fundamentals of the HealthTech industry remain strong. The global healthcare market is expected to grow by 5.4% annually from 2022 to 2028, creating a large and growing market for HealthTech solutions.
Second, there is a continued focus on innovation in the HealthTech space. There are a number of promising new technologies emerging, such as artificial intelligence, gene editing, and digital health. These technologies have the potential to revolutionize healthcare and create new opportunities for HealthTech companies.
Finally, the regulatory environment for HealthTech is becoming more favorable. In the United States for example, the Biden administration has made healthcare innovation a priority. This could lead to the passage of legislation that makes it easier for HealthTech companies to bring their products to market.
Overall, the outlook for the HealthTech IPO market in 2024 is positive. The underlying fundamentals of the industry are strong, there is a continued focus on innovation, and the regulatory environment is becoming more favourable. As a result, we can expect to see a number of HealthTech IPOs in the coming year.
Building on the window of opportunity expected in the next 12 months, which companies are likely to lead the HealthTech IPO renaissance? Top of the potential list are two cohorts:
1. Digital Health companies offering patient facing services such as virtual care, telemedicine, digital MSK, digital physical therapy, managing chronic conditions etc..
2. HealthIT companies offering SaaS based services to doctors and primary care organisations enabling appointment scheduling, digital communication with patients, data and analytics, clinical decision support tools etc..
Why these 2 cohorts?
Fundamentally all of them operate SaaS or value based care models, have delivered consistent growth in the last 3 years, have expanded internationally or horizontally in adjacent markets, are operating under shared risk and savings contracts, have generated a lot of evidence to support their claims of improving quality, reducing costs and increasing patient satisfaction.
Growth and M&A for Healthcare Technology companies
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Five potential HealthTech IPO's in 2024:
Omada Health: Omada Health is a digital health company that provides personalized coaching and support to help people manage chronic conditions like diabetes, hypertension, and obesity. The company has a strong track record of growth and has been recognized for its innovation.
Hinge Health: Hinge Health is a digital health company that provides virtual physical therapy and pain management services. The company uses sensors and artificial intelligence to track patients' movements and provide real-time feedback.
Sword Health: Sword Health is a digital health company that provides patients with access to physical therapy, pain management, and other services through a mobile app. The company uses sensors and artificial intelligence to track patients' movements and provide real-time feedback.
Doctolib: Doctolib is a digital healthcare platform that connects patients with healthcare providers. The company allows patients to book appointments online, share medical documents, and message their healthcare providers. Doctolib is the leading digital healthcare platform in Europe and is growing rapidly in other markets.
Aledade: Aledade is a physician-led accountable care organization (ACO) that helps independent primary care practices thrive in value-based care. The company provides practices with data and analytics, clinical decision support, and other tools that help them improve quality, reduce costs, and increase patient satisfaction. Aledade is a leading player in the ACO space and is growing rapidly.
Omada Health:
Omada Health is a digital health company that provides personalized coaching and support to help people manage chronic conditions like diabetes, hypertension, and obesity. The company's platform uses artificial intelligence, machine learning, and behavioral science to help people make healthy changes to their lifestyle.
Omada Health's platform is based on the following principles:
Personalization: Omada Health's platform is personalized to each individual's needs and goals. The platform uses data and analytics to identify each person's strengths and weaknesses, and then creates a customized program to help them achieve their goals.
Coaching: Omada Health's platform includes access to a team of coaches who provide personalized support and guidance. The coaches are available to answer questions, provide encouragement, and help people stay motivated.
Community: Omada Health's platform includes a community forum where people can connect with other users and share their experiences. The community can provide support, encouragement, and a sense of belonging.
Omada Health's platform has been shown to be effective in helping people manage chronic conditions. In a clinical trial of people with type 2 diabetes, Omada Health's platform was shown to reduce blood sugar levels by an average of 1.5%. In a clinical trial of people with hypertension, Omada Health's platform was shown to reduce blood pressure by an average of 10 mmHg. In a clinical trial of people with obesity, Omada Health's platform was shown to help people lose an average of 10% of their body weight.
Omada Health potential 2024 IPO:
> Omada Health was founded in 2011 and is headquartered in San Francisco, California.
> Omada Health has raised a total of $528.5M in funding over 11 rounds. Their latest funding was raised on Jan 1, 2023 from a Debt Financing round.
> Omada Health is funded by 31 investors. Wellington Management and Empede Capital are the most recent investors.
> Omada Health has a post-money valuation in the range of $1B to $10B as of Feb 23, 2022, according to PrivCo.
> Omada Health has acquired Physera on May 19, 2020. They acquired Physera for $30M.
Source: Crunchbase
Sean Duffy, Omada's CEO commented in July 2022 "An IPO is a great destination. It's likely the right move for Omada. But foundationally, it's a capital-raising event," Duffy said. "The pros of trying to sprint out to the public markets really don't outweigh the cons if things don't go right."
Source: Business Insider
Here are some of the factors that could affect Omada Health's IPO:
The overall market conditions: The IPO market is cyclical, and the timing of Omada Health's IPO will be important. An IPO is more likely to be successful when the market is strong.
The competition: The digital health space is becoming increasingly competitive. Omada Health will need to differentiate itself from its competitors in order to be successful.
The regulatory environment: The regulatory environment for digital health is evolving. Omada Health will need to comply with all applicable regulations in order to go public.
Hinge Health:
Hinge Health is a digital health company that provides virtual physical therapy and pain management services. The company's platform uses sensors and artificial intelligence to track patients' movements and provide real-time feedback, as well as connect them with physical therapists.
Hinge Health's platform is used by over 1 million patients and is covered by over 50 health plans. The company has been recognized for its innovation, having been named to the Forbes Healthcare 50 list in 2022 and 2023.
Here are some of the key features of Hinge Health's platform:
Virtual physical therapy: Patients can access physical therapy from the comfort of their own homes. The platform provides access to a team of physical therapists who can create personalized treatment plans and provide real-time feedback.
Pain management: Patients can access pain management services, such as medication management and guided relaxation exercises.
Sensors and artificial intelligence: The platform uses sensors to track patients' movements and provide real-time feedback. This helps to ensure that patients are performing the exercises correctly and reduces the risk of injury.
Data-driven insights: The platform collects data on patients' progress, which can be used to track their improvement and make adjustments to their treatment plan as needed.
Hinge Health is a convenient and effective way to receive physical therapy and pain management. The platform is available to patients in the United States, Canada, and the United Kingdom.
Hinge Health potential 2024 IPO:
> Hinge Health has raised a total of $1B in funding over 10 rounds. Their latest funding was raised on Oct 28, 2021 from a Series E round.
> Hinge Health is funded by 16 investors. Alkeon Capital and Coatue are the most recent investors.Hinge Health has a post-money valuation in the range of $1B to $10B as of Oct 28, 2021, according to PrivCo.
> Hinge Health has acquired 2 organizations. Their most recent acquisition was wrnch on Sep 17, 2021.
Source: Crunchbase
Hinge Health's CEO Daniel Perez commented in January 2021 “We’re targeting a 2022 IPO. We’ve passed $100 million revenue with clear momentum to $200 million. There is a secular trend towards digitization and healthcare, and we were feeling these tailwinds even pre COVID.”
Source: Reuters
Hinge Health has a strong track record of growth. In 2020, the company's revenue grew by 300%. The company has also expanded its reach, now serving patients in the United States, Canada, and the United Kingdom.
Hinge Health is well-positioned for an IPO. The company has a strong growth story, a large addressable market, and a differentiated product.
Sword Health:
Sword Health is a digital MSK (musculoskeletal) healthcare company that provides patients with access to physical therapy, pain management, and other services through a mobile app.
The company's platform uses sensors and artificial intelligence to track patients' movements and provide real-time feedback, as well as connect them with physical therapists.
Sword Health's platform has been shown to be effective in treating a variety of conditions, including low back pain, knee pain, and shoulder pain. The company has also been recognized for its innovation, having been named to the Forbes Healthcare 50 list in 2022.
Here are some of the key features of Sword Health's platform:
Real-time feedback: The platform uses sensors to track patients' movements and provide real-time feedback on their form. This helps to ensure that patients are performing the exercises correctly and reduces the risk of injury.
Personalized exercise plans: The platform uses artificial intelligence to create personalized exercise plans for each patient. This ensures that patients are getting the right exercises for their individual needs.
Connection with physical therapists: Patients have access to a team of physical therapists who can provide guidance and support throughout their treatment.
Data-driven insights: The platform collects data on patients' progress, which can be used to track their improvement and make adjustments to their treatment plan as needed.
Sword Health's platform is available to patients in the United States, Canada, and the United Kingdom.
Sword Health potential 2024 IPO:
> Sword Health has raised a total of $323.5M in funding over 9 rounds. Their latest funding was raised on Nov 22, 2021 from a Series D round.
> Sword Health is funded by 18 investors. Transformation Capital and Founders Fund are the most recent investors.
> Sword Health has acquired Vigilant Technologies on Oct 5, 2021.
Source: Crunchbase
Sword Health wants to be profitable before an IPO, and it's aiming to hit that milestone in 2024. CEO Virgilio Bento said Sword was still growing rapidly without compromising that timeline. The company wants to triple its AI team and is considering more acquisitions along the way, he said.
Source: Business Insider
Sword Health has a strong track record of growth. In 2022, the company's revenue grew by 833%. The company has also expanded its reach, now serving patients in the United States, Canada, and the United Kingdom.
Overall, Sword Health is a potential IPO candidate and major player in the digital MSK space.
Doctolib:
Doctolib is a digital health company that provides a platform for patients to book appointments with healthcare professionals online. The company was founded in 2013 and is headquartered in Paris, France. Doctolib is available in France, Germany, Italy, Spain, Belgium, Netherlands, Portugal, Switzerland, Austria, and Luxembourg.
Doctolib's platform allows patients to search for healthcare professionals by specialty, location, and availability. Patients can also book appointments, view their medical records, and communicate with their healthcare providers through the platform.
Doctolib has over 100 million registered users and over 3 million healthcare professionals on its platform.
Doctolib is a leading digital health company in Europe. The company has been recognized for its innovation, having been named to the Forbes Europe's Next Unicorns list in 2022.
Here are some of the features of Doctolib:
Book appointments online: Patients can search for healthcare professionals by specialty, location, and availability. They can then book appointments online, 24/7.
View medical records: Patients can view their medical records, including test results, doctor's notes, and prescriptions.
Communicate with healthcare providers: Patients can communicate with their healthcare providers through the Doctolib platform. This can be done through chat, video calls, or secure messaging.
Payments: Patients can pay for appointments and services through the Doctolib platform.
Doctolib is a convenient and easy-to-use platform for patients to book appointments with healthcare professionals. The platform is also secure and compliant with data protection regulations.
Doctolib potential 2024 IPO:
> Doctolib has raised a total of $815M in funding over 9 rounds. Their latest funding was raised on Mar 15, 2022 from a Series F round.
Source: Crunchbase
In the next few years, some of French tech’s poster children — companies like Alan, Qonto, Mirakl and Doctolib — are expected to IPO. But where they chose to list is very much anyone’s guess.
Source: Sifted
The potential of a Doctolib IPO in 2024 is high with a number of factors that could contribute to the company's success if it does go public.
First, Doctolib is a leading digital healthcare platform in Europe. The company has over 100 million users and over 1 million healthcare providers on its platform. This gives Doctolib a strong foundation to build on as it expands into new markets.
Second, the demand for digital healthcare services is growing rapidly. This is due to a number of factors, including the increasing cost of healthcare, the growing popularity of telehealth, and the aging population. Doctolib is well-positioned to capitalize on this growth.
Third, Doctolib has a strong track record of growth. The company has grown its revenue by over 100% in each of the past three years. This growth is likely to continue as Doctolib expands its reach and adds new features to its platform.
Fourth, Doctolib has a strong management team. The company is led by founders Stanislas Niox-Chateau and Hugo Blaess, who have a proven track record of success in the digital healthcare space.
Overall, Doctolib has the potential to be a successful IPO candidate in 2024.
Aledade
Aledade is a physician-led accountable care organization (ACO) that helps independent primary care practices thrive in value-based care. The company was founded in 2014 and is headquartered in Bethesda, Maryland.
Aledade partners with over 1,500 practices in 45 states and the District of Columbia, representing over 2 million patient lives under management. The company's platform provides practices with access to data and analytics, clinical decision support, and other tools that help them improve quality, reduce costs, and increase patient satisfaction.
Aledade has a strong track record of growth. In 2022, the company's revenue grew by 40%. The company has also been recognized for its innovation, having been named to the Forbes Healthcare 50 list in 2022.
Here are some of the key features of Aledade's platform:
Data and analytics: Aledade's platform provides practices with access to a wealth of data, including patient demographics, clinical data, and financial data. This data can be used to identify areas for improvement and to track progress over time.
Clinical decision support: Aledade's platform provides practices with clinical decision support tools that can help physicians make better decisions about patient care. These tools can help to prevent errors and to improve patient outcomes.
Other tools: Aledade's platform also provides practices with a variety of other tools, such as telehealth, remote patient monitoring, and population health management. These tools can help practices to improve the quality and efficiency of care.
Aledade is a leading player in the ACO space. The company is well-positioned to continue to grow its business in the years to come, as the demand for value-based care continues to grow.
Aledade potential 2024 IPO:
> Aledade has raised a total of $677.9M in funding over 9 rounds. Their latest funding was raised on Jun 21, 2023 from a Series F round.
> Aledade is funded by 15 investors. Lightspeed Venture Partners and Venrock are the most recent investors.
> Aledade has a post-money valuation in the range of $1B to $10B as of Jun 21, 2023, according to PrivCo.
Source: Crunchbase
"IPO Potential Aledade said that, along with its primary care practices, the company has saved the health-care system more than $1.7 billion"
Source: Bloomberg
If Aledade decides to go public in 2024, it is likely to be a high-profile IPO. The company has a strong story and a large addressable market. However, investors will need to carefully consider the risks before investing in the company.
Final Thoughts:
There are a number of factors that could contribute to a recovery in the HealthTech IPO market in 2024.
The continued growth of the global healthcare industry. The global healthcare market is expected to reach $10 trillion by 2026, driven by factors such as aging populations and increasing chronic diseases. This growth will create opportunities for HealthTech companies to develop innovative solutions to meet the needs of patients and providers.
The increasing focus on value-based care. Value-based care is a system of payment that rewards providers for delivering high-quality care at a lower cost. This is creating demand for HealthTech solutions that can help providers track and improve the quality of care they deliver.
The growing importance of data analytics in healthcare. Data analytics is being used to improve everything from clinical decision-making to patient care coordination. This is creating opportunities for HealthTech companies that can develop and deploy data analytics solutions for the healthcare industry.
Of course, there are also some risks that could hinder the recovery of the HealthTech IPO market in 2024.
The ongoing economic uncertainty. The global economy is facing a number of challenges, including rising inflation and interest rates. This could make it more difficult for HealthTech companies to raise capital through IPOs.
The regulatory environment. The healthcare industry is heavily regulated, and this could make it more difficult for HealthTech companies to bring new products and services to market.
The competition. The HealthTech industry is becoming increasingly competitive, as more and more companies are developing innovative solutions. This could make it more difficult for HealthTech companies to stand out from the crowd and attract investors.
Overall, the outlook for the HealthTech IPO market in 2024 is positive.
Growth and M&A for Healthcare Technology companies
Healthcare Technology Thought Leadership from Nelson Advisors – Market Insights, Analysis & Predictions. Visit https://www.healthcare.digital
HealthTech Corporate Development - Buy Side, Sell Side, Growth & Strategy services for Founders, Owners and Investors. Email lloyd@nelsonadvisors.co.uk
HealthTech M&A Newsletter from Nelson Advisors - HealthTech, Health IT, Digital Health Insights and Analysis. Subscribe Today! https://lnkd.in/e5hTp_xb
HealthTech Corporate Development and M&A - Buy Side, Sell Side, Growth & Strategy services for companies in Europe, Middle East and Africa. Visit www.nelsonadvisors.co.uk
