Issue 346
Welcome back to E&O: a paying subscribers-only weekly newsletter focused on three areas of health tech: FDA-regulated software devices, digital health as an employee benefit, and national virtual clinics.
Exits & Outcomes Newsletter
Here’s a quick rundown of a few bits of competitive intel before we dig into the likely pricetag of Cerebral’s recent M&A and the newest program added to Amazon’s Benefits Connector….
- Oshi Health, the virtual clinic focused on gastrointestinal health, changed its number of patients served to more than 30,000 on its website. The company updated it to 23,000 just five weeks ago, meaning it likely added 7,000 new patients in the past five weeks. That’s quite an increase. In the month prior it seemed to add 2,000 new patients. In the months before that update it was averaging about 1,000 new patients each month. The company appears to be accelerating its growth.
- NEAT-O. The University of Minnesota is conducting a clinical trial called Autonomous Digital CBT Intervention for Opioid Use Disorder in Individuals With Co-Occurring Internalizing Disorders. The Phase 1 trial is pilot testing pilot testing “NEAT-O, a digital Cognitive Behavioral Therapy (CBT) program tailored for individuals with opioid use disorder (OUD) and concurrent anxiety or mood disorders.” More
- Germany has made a number of changes to its DiGA program for reimbursable digital therapeutics available in that country. This week the formulary removed Orthopy Health’s program for knee injuries, which cost €487.84. In May, the formulary removed Selfapys online course for chronic pain, which cost €540. In June it added hiToco: ADHD Parent Training, which costs €599. Around that time it also removed a digital program for mild to moderate depression: MindDoc Prescription, which was priced at €199. Later in the summer it added MindNet eHealth Solutions’ ORIKO ADHD therapy, which is priced at €479.70. Additionally, Smoke Free’s smoking cessation program had its price lowered to €231.25 down from €389. Finally, the formulary added a new DiGA from Gaia named Attexis, which is a digital therapeutic for adults with ADHD. It is priced at €599.40.
- Last month the founder and CEO of Sword Health Virgilio Bento posted on Linkedin that his company “grew from a $160M revenue run rate in January to >$260M in July, and very soon we’ll reach $300M.” Keep in mind those numbers are for “revenue run rate,” which I believe is simply 12x the month in question. So, Sword likely did $13.3M in January 2025 and more than $21.7M in July 2025. Similarly, Bento posted on Linkedin in early April that “Sword Health has crossed $200M in annualized revenue.” That suggests Sword did about $16.7M in revenue for March, which tracks with the other monthly numbers above. Finally, as E&O has reported in the past, Sword Health stated that its contracted annual recurring revenue (cARR) was approaching $200 million at the end of 2023. It said its cARR was $93 million in 2022. cARR is different than a revenue run rate, of course. Do all of those numbers square for you?
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Cerebral bought Resilience Lab with $25M in stock
News you probably already know: In early August, embattled mental health company Cerebral announced that it had acquired Resilience Lab for an undisclosed sum. Cerebral is a virtual mental health provider and Resilience Lab had created a training platform for mental health providers that helped combat burnout.
$25M in stock: Well, E&O has learned that Cerebral paid $25 million in stock as part of the transaction. Here’s how the companies describe Resilience Lab in their announcement last month:
“Resilience Lab brings its proprietary clinician development platform that directly addresses the clinician burnout and turnover prevalent across the industry. The Resilience institute has developed an evidence-informed methodology to consistently train and develop early-career therapists through intensive supervision, structured training protocols and certification.”
Covered lives: The combined companies claim to be available to 100 million commercial insurance members.
Amazon quietly updates digital programs in its benefits connector platform: Adds Fay for nutrition and weight loss plus Hinge Health for pelvic health
While it hasn’t announced it yet, Amazon added a few new programs to its Amazon Health: Health Benefits Connector platform, which helps Amazon users discover which health benefits their existing health plan already covers for them.
Fay for nutrition: The big change is the addition of Fay Health for nutrition counseling and weight loss. Let’s start with nutrition counseling. Fay is currently the only digital health company listed as a partner for nutrition counseling:
“Nutrition programs
- 1:1 nutrition counseling sessions with a Registered Dietitian (RD)
- Personalized, judgement-free guidance and accountability
- Evidence-based care to support PCOS, IBS, diabetes, and more”
Fay and Teladoc for weight loss: Prior to this update, the Benefits Connector platform didn’t promote any weight loss programs despite already including other programs from Omada and Teladoc. Interesting that Omada is not included in this section of the site just Teladoc and newcomer Fay:
“Get help with weight loss
- Unlimited 1:1 expert coaching
- Improve overall fitness, heart, digestion, and hormone health
- Achieve long-lasting results through meal planning, lifestyle changes, and habit formation”
Hinge Health for pelvic floor therapy: Hinge Health has been included in the platform for a while as the sole promoted vendor for MSK (again, Omada is not promoted as an option for MSK benefits despite being a Hinge competitor). What’s new, however, is a section dedicated to pelvic health and Hinge Health is the only program listed:
“Pelvic Floor Therapy
- Personalized exercises to reduce pelvic pain and discomfort
- 1:1 Support from a dedicated care team
- Free pelvic trainer device if covered”
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