Early signals from the public markets
Q1 2024’s earnings season—when digital health companies on the public markets report their 2023 performance and share what they expect for 2024—has wrapped, giving us an early sector pulse for the year ahead. Headwinds remain, including market saturation, questions around demand, and even accounting and revenue mishaps. Hims & Hers and Talkspace both beat earnings in 2023 and are charting strong growth into 2024. Despite other obstacles, leaders at Veradigm, Teladoc, and DarioHealth noted that they each are positioned to pursue M&A this year.
What’s working for the digital health companies performing well on public markets? Hims & Hers attributes strong user growth to new personalized offerings for weight loss. For Talkspace, minimizing member acquisition costs and a strategically timed push into Medicare seem to be panning out. Though each publicly traded company will take a different path to profitability, focus on cost control and strategic market expansion seem to be the name of the game for 2024.
Headlines
Federal Regulators Team Up With Private Sector To Set Standards In AI
Microsoft, Google, and leading AMCs align to develop AI safety standards STAT
Cigna’s Evernorth To Launch Behavioral Health Practice Group
Hybrid behavioral health care services available in six states with sub-72 hour wait times Forbes
FarmboxRx Unveils Maternal Health Program
Program to offer custom meals, support, and educational resources MedCity News
Mark Cuban’s Cost Plus Drugs Will Begin Manufacturing Its Own Medications
MCCPDC Texas manufacturing plant to start with producing epinephrine for ICUs Fortune
Insurers Report Reduction In Claims Data Following Change Healthcare Hack
Major insurers reported a 15-20% decrease in claims data after cyberattack Fierce Healthcare
How Americans View Weight-Loss Drugs And Their Potential Impact On Obesity
Study finds 53% of Americans view GLP-1s as a good option for weight loss Pew Research
Recent Funding
- Overjet picks up $53.2M for its AI tool to detect dental abnormalities and automate workflow
- Healthcare benefits support and navigation solution Healthee lands $32M
- BrainCheck, a digital assessment tool for cognitive impairment, banks $15M
- Tiny Health secures $8.5M to grow its pediatric and maternal gut health testing offerings
- Chamber Cardio grabs $8M for its value-based care software for cardiology clinics
- PreemptiveAI emerges with $6.4M to predict health outcomes with foundational AI models