Omada Health Raises $50 Million, Led by Cigna14-Jun-2017
Omada Health press release on $50m funding round:
Two Companies Growing Commercial Collaboration to Deliver Chronic Disease Prevention to Cigna Members, Drive Innovation
San Francisco, CA; Bloomfield, CT (June 14, 2017) – Building on the largest enrollment quarter in the company’s history, Omada Health today announced a $50 million fundraising round led by global health services leader Cigna (NYSE: CI). In addition to leading the fundraising round, Cigna will also grow its non-exclusive commercial partnership with Omada, adding the recognized Omada Program to Cigna’s suite of health improvement services. Joining the Cigna-led fundraising round were new investors Civilization Ventures and Sanofi Genzyme BioVentures.
As part of the expanded commercial collaboration, eligible Cigna-administered health plan customers may have no-cost access to Omada’s digital intensive behavioral counseling platform as a fully covered preventive benefit in the carrier’s health improvement program portfolio. The Cigna-Omada Initiative will incorporate Omada’s data-driven, evidence-based digital behavioral counseling program and be available to Cigna customers with prediabetes, as well as those at elevated risk of chronic conditions such as heart disease and hypertension.
“Cigna is one of the most forward-thinking health service companies in the United States,” said Omada CEO Sean Duffy. “We love when our commercial partners invest, and Cigna’s lead on this fundraising round is further validation that Omada’s behavior change approach to chronic disease prevention is driving real results in the real world. We look forward to working with the Cigna leadership to deliver personalized, adaptable chronic disease prevention to their membership. As Omada expands further into the health plan and health system space, we are fortunate to be working with some of the most well-established and innovative companies in the healthcare industry.”
“Cigna is a world leader in using behavior science to help customers change their habits, improve their health, and reduce their risk of chronic disease,” said Cigna’s Chief Medical Officer Alan M. Muney, MD MHA. “Our work with Omada will further that expertise. This relationship is more than an investment or simple collaboration -- it’s an important step toward the future state of healthcare. Omada Health’s mission and ours are very closely aligned. That alignment will drive proven, outcomes-oriented performance.”
Omada is a worldwide leader in digital therapeutics, publishing seven peer-reviewed studies demonstrating real-world efficacy. The company is the first digital health provider to demonstrate sustainable results over a two-year time horizon, and has shown clinically-meaningful success with seniors, veterans, and the underserved as it prepares to begin offering services to Medicare beneficiaries in 2018.
Cigna evaluated Omada’s digital behavior change program in 2015, with positive results to date, and plans to expand availability in the future. The collaboration is consistent with Cigna’s focus on preventing diabetes, improving health, and driving better clinical and health economic outcomes for its members. Cigna has been a leader in the shift towards value-based healthcare, and Omada’s pay-for-outcomes revenue model aligns perfectly with that focus.
Also participating in the round were previous investors U.S. Venture Partners, Andreessen Horowitz, Norwest Venture Partners, Humana, Kaiser Permanente Ventures, Providence Ventures, dRx Capital, and GE Ventures.
About Omada Health
Omada Health is a digital behavioral medicine company that inspires and enables people to change the habits that put them most at risk for chronic conditions like heart disease and type 2 diabetes. The company is the largest CDC-recognized provider of the National Diabetes Prevention Program, and since its founding, has enrolled more than 100,000 participants. Omada’s program combines provenbehavioral science, thepower of professional health coaches and peer groups, connected technology, andworld-class design to deliverclinically-meaningful results. The company operates on a pay-for-outcomes pricing model that aligns incentives between Omada, customers, and participants. Omada Health was named a 2016 Technology Pioneer by the World Economic Forum, and one of Fast Company’s Most Innovative 2017. To learn more, visit www.omadahealth.com
Cigna Corporation (NYSE: CI) is a global health service company dedicated to helping people improve their health, well-being and sense of security. All products and services are provided exclusively by or through operating subsidiaries of Cigna Corporation, including Cigna Health and Life Insurance Company, Connecticut General Life Insurance Company, Life Insurance Company of North America and Cigna Life Insurance Company of New York. Such products and services include an integrated suite of health services, such as medical, dental, behavioral health, pharmacy, vision, supplemental benefits, and other related products including group life, accident and disability insurance. Cigna maintains sales capability in 30 countries and jurisdictions, and has more than 95 million customer relationships throughout the world. To learn more about Cigna®, including links to follow us on Facebook or Twitter, visit www.cigna.com.