Welcome back to E&O Mondays, the free newsletter from Exits & Outcomes that features health tech puzzles, M&A flashbacks, new and under-the-radar funding news, paid content teasers, and other digital health odds and ends.
In this issue:
- Read on for a new financial detail about the recent Thirty Madison-Nurx merger.
- Plus: Six stealthy or under-reported digital health funding deals…
- But first: If a friend recently told you to subscribe to E&O, they probably meant the paid version. The E&O Mondays newsletter is great and all but you’re missing the real deal: Sign up as a paying subscriber to E&O by clicking right here…
Thirty Madison paid $110M in stock for Nurx
Last month the news broke that Thirty Madison, which offers virtual care and DTC pharmacy services via its brands Cove, Keeps, Even, and Picnic, merged with women’s health virtual care provider Nurx for an undisclosed sum. While few details about the deal emerged at the time of the announcement, word was that it was an all-stock transaction.
Thirty Madison disclosed in a recent filing that it had sold about $110 million of its stock in connection to the Nurx merger. Perhaps not coincidentally, that happens to be the exact amount that Nurx had raised in venture funding. The filing explains:
“Offering made pursuant to the Agreement and Plan of Merger and Reorganization, dated as of 2/8/2022, by and among Thirty Madison, Inc., Lex Merger Sub, Inc., NURX Inc., and Fortis Advisors LLC (the “Merger Agreement”).”
Considering reports that Nurx had a valuation of around $300 million prior to the deal and that it hoped to hit $150 million in revenue by the end of 2020, $110 million seems like a much lower than expected acquisition price for the company.
Am I reading this transaction, right –> Nurx’s investors now own $110 million worth of the combined company?
6 secret (or under-reported) health tech funding deals from recent weeks
Instead of rehashing the dozens of funding deals you’ve already read elsewhere, I focused this week on a few deals that you likely have not yet read about. (Unless noted otherwise in the write-ups below, these are all first in E&O — as far as I can Google.)
* Keep in mind: Most of the amounts listed below are currently unannounced equity deals, so the full amount the company raises and eventually announces may be higher than the numbers you read here…
$40 million – Mendel AI – When this company raised $18 million last June, it announced a partnership with eFax that would make every eFax exchanged between providers machine-readable. “Mendel is a machine that can read and understand medicine. Mendel Health is a for-profit corporation headquartered in San Jose, California that uses novel AI technology to absorb clinical data in medical literature as well as patient health records, to unlock a wide range of Real World Data applications.” Site
$3 million – Gem Health – Here’s an interesting one. Brian Sauer, the Optum exec who was CEO of mental health company Sanvello for two yeas following its acquisition by United Health Group, has started up a new company with an initial focus on sleep. Sauer recently wrote: “Gem will be focused on simplifying the experience in Speciality Care, leading with a consumer-first approach that really works, similar to how we changed the experience and outcomes in Mental Health with Sanvello Health. Our first product is Gem Sleep, which will help the millions of people, like myself, who have Sleep Apnea.” Site
$2.5 million – Stride Therapy – Practice management software for physical therapy clinics. Site
$4.7 million – Sentry Health – Sentry recently merged with a health tech company named WellView, but the companies did not tick the box that designates this raise as being in connection with a merger or acquisition: “SentryHealth brings advanced data science and medical advocacy from Registered Nurse Advocates to aid employees in navigating the healthcare system and their benefits. Wellview’s digital health platform allows employees to engage virtually with health and wellbeing experts.” Site
$1.8 million – HomeThrive – This looks to be HomeThrive’s Series B, which it hopes will hit at least $25 million. So far, it has raised $16.5 million for this round. “Homethrive is a technology-enabled healthcare service company that reduces work, worry, and stress for unpaid family caregivers, their loved ones, and their employers.” Site
$3 million – Post Acute Analytics – “Through proprietary analytics our solutions ensure that providers & payors can make real-time decisions that improve patient outcomes while reducing total costs.” Site