HHS launches public-private venture capital partnership

On June 1, 2021, the Department of Health and Human Services (HHS) announced the formation of a partnership between HHS's Biomedical Advanced Research and Development Authority (BARDA) and the Global Health Investment Corporation (GHIC). GHIC is a nonprofit organization which is the managing member of the Global Health Investment Fund (GHIF). According to its website, GHIF is a $108 million social impact investment fund that supports innovations for public health based on improving or expanding access to existing products. It prioritizes opportunities with "dual market" potential, that will both improve public health in developing countries but will have commercial value in high-income countries. Through its BARDA Ventures program, BARDA intends to provide GHIC with at least $50 million over five years with potential for up to $500 million over ten years, to be part of a global health security fund with matching capital from other investors.

 

The partnership will be supported by BARDA's Division of Research, Innovation and Ventures (DRIVe), which was launched in 2018. DRIVe currently partners with 37 companies through federal contracts and has a network of 13 accelerators that support early-stage companies, including 154 health security product developers.

Doximity files registration statement for IPO

Doximity, Inc. filed a registration statement with the Securities & Exchange Commission on May 28, 2021 for its initial public offering (IPO). The number of Class A shares to be sold and price of shares is not yet specified. The statement specifies that up to 15% of the shares will be reserved for sale to certain qualifying member physicians. The existing Class B shares are held by the company's officers and directors and their affiliates.

 

Doximity had 1.8 million medical professional members as of March 31, 2021, including more than 80% of US physicians. It also counts 50% of nurse practitioners and physician assistants among its members, as well as 90% of graduating U.S. medical students. Doximity membership is free for physicians; its revenue-generating customers are pharmaceutical manufacturers and health care systems. Doximity states that its cloud-based platform provides tools to its professional members including member profiles for the largest medical professional network in the nation; a newsfeed oriented to the latest medical news; and clinical workflow tools including telehealth, secure messaging and digital faxing. It monetizes its platform through its marketing solutions for pharmaceutical manufacturers and health system customers; hiring solutions for health system customers; and telehealth solutions. With regard to telehealth, Doximity states that it had 63 million telehealth visits in its fiscal year ending March 31, 2021, and subscription agreements with 150 health systems.

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UnitedHealth Group’s acquisition of Change Healthcare hits a roadblock

Change Healthcare Inc. (Change) announced that it and UnitedHealth Group Incorporated (UnitedHealth) received a second request from the Department of Justice (DOJ) for information relating to their planned merger. The announcement was contained in its Form 8K filed with the Securities & Exchange Commission (SEC) on March 24, 2021. Change and UnitedHealth had originally filed their premerger notification on January 19, 2021, but refiled it on February 22 to allow additional time for review by the DOJ. The second request from the DOJ extends the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 to 30 days after the companies have substantially complied with the second request. In the proxy statement filed with the SEC on March 5, 2021, Change described itself as “a leading healthcare technology platform that provides data and analytics-driven solutions to improve clinical, financial, administrative, and patient engagement outcomes in the U.S. healthcare system.”

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uBiome founders face criminal indictment and SEC fraud charges

The Department of Justice (DOJ) and Securities & Exchange Commission (SEC) sounded a warning note to entrepreneurs in the healthcare space with the criminal indictment and SEC complaint filed against the founders of uBiome, Inc. The FBI agent handling the case is quoted in the DOJ press release as stating, “This indictment illustrates that the heavily regulated healthcare industry does not lend itself to a ‘move fast and break things’ approach, but rather to an approach of compliance and accountability.”

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Oscar Health files registration statement for billion dollar IPO

Oscar Health (Oscar) has filed an amended registration statement on February 22, 2021 for a proposed initial public offering (IPO) of 31,000 Class A shares. The company describes itself as having “one foot in consumer technology and the other in health care”. Oscar had 529,000 members as of 1/31/2021, serving 291 counties across 18 states. Its members had five million health care visits in 2020, and as of 1/31/2021, its average individual per member/per month (PMPM) direct policy premium was $515. Its draft prospectus emphasizes its full stack technology platform and member engagement engine as key strategic assets.

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