OncoHealth, a digital health company focused on oncology, has secured an undisclosed amount of funding. The investors were Arsenal Capital Partners and McKesson Corporation. Moving forward, Arsenal will take a majority ownership stake in OncoHealth.
ATLANTA, May 9, 2022 /PRNewswire/ — OncoHealth, the leading digital health company dedicated to oncology, announced today it has received strategic investments from Arsenal Capital Partners (“Arsenal”), a private equity firm specializing in building transformational healthcare businesses, and from McKesson Corporation (“McKesson”). The investments will support OncoHealth’s innovation and delivery of its oncology-specific digital health solutions for people with cancer, and Arsenal will take a majority ownership stake in the business. Additional financial terms of the transaction were not disclosed.
Since 2017 the FDA has approved more than 285 new cancer indications, which has provided people with cancer with more treatment options than ever before but also has increased both the complexity and cost of care. Demand for oncology services is expected to rise rapidly, driven by an aging population and improvements in cancer survival rates.
“Arsenal is focused on helping to build businesses that are tackling healthcare’s most pressing challenges,” said John DiGiovanni, an Investment Partner of Arsenal. “The oncology landscape is undergoing dramatic change, with the unprecedented rise of new anti-cancer treatments increasing the complexity and cost of care. By marrying data, digital technology, and clinical expertise, OncoHealth is removing administrative burdens for health plans and providers, facilitating stakeholder alignment, and improving the patient experience.”
OncoHealth helps health plans, employers, providers, patients, and life science researchers navigate the physical, mental, and financial complexities of cancer through technology-enabled services and real-world data. Through its digital health solutions for treatment review, real-world evidence, and oncology supportive telehealth, OncoHealth enables its clients to better understand trends, ensure evidence-based care, support patients, and manage costs across all cancer types. Today, the company works with 16 health plans, 9,200 providers, and five life science partners.
“Oncology is a critical part of our company’s growth strategy, and we are deeply committed to addressing unmet needs in this space,” said Brian Tyler, Chief Executive Officer, McKesson. “McKesson’s unmatched oncology ecosystem helps accelerate the development of new therapies and enhances the delivery of personalized care. Together with Ontada, our oncology technology and insights business, and OncoHealth’s digital expertise, we’ll be able to further deliver insights, products, and services that make quality of care more accessible to cancer patients.”
Over the last three years, OncoHealth has seen tremendous growth, including expanding its customer base by over 600%, increasing revenue 45% year over year, recruiting key leaders across the company, and expanding its product portfolio with three new oncology-specific solutions. In March 2022, the company unveiled the industry’s first patient-centric digital platform for people and their families facing cancer. Iris™ by OncoHealth combines human-centered design, data, empathy, and specially trained, U.S.-based oncology experts to deliver personalized, evidence-based oncology care 24×7 via a smartphone.
“OncoHealth is a mission-driven, patient-focused company, and we have been fortunate to have world-class investors, passionate employees, and dedicated customers with us as we bring digital health solutions that drive excellent clinical outcomes and provide personalized supportive care to improve quality of life for people with cancer,” said Rick Dean, CEO, OncoHealth. “Arsenal and McKesson, along with our other key investors, share our strategic vision, and we are committed to continuing to expand our offerings through organic growth and strategic acquisitions to further our leadership across the digital oncology landscape.”
“OncoHealth blends a phenomenal leadership team that has the ambition and ability to transform the cancer patient experience for the better with the technology and solutions to finally make that goal possible,” said Mike Bernstein, an Operating Partner of Arsenal. “Arsenal is delighted to be supporting OncoHealth as it continues to grow its team, products, and innovation for customers and partners.”
Sidley Austin, LLP served as legal advisor and Evercore acted as financial advisor on behalf of Arsenal. Nelson Mullins Riley & Scarborough, LLP served as legal advisor to OncoHealth.
OncoHealth is a leading digital health company dedicated to helping health plans, employers, providers, patients, and life science researchers navigate the physical, mental, and financial complexities of cancer through technology-enabled services and real-world data analytics. Supporting more than seven million people in the U.S. and Puerto Rico, OncoHealth offers digital solutions for treatment review, real-world evidence, and telehealth across all cancer types. For more information, visit www.oncohealth.us.