Outcome Health, a point-of-care platform for U.S. physicians, said it raised $500 million in its first-ever financing round, a deal that underscores ongoing interest in the influential point-of-care market.
The company, which earns revenue in part from pharmaceutical ads from 28 of the top 30 drugmakers, brought in roughly $100 million in revenue in 2016. The drug industry, in general, is looking for ways to shore up old means of advertising and discover new ways to target patients and doctors.
A recent study conducted by Kantar Media and Point of Care Communications Council found that 60% of patients who have seen point-of-care ads in a doctor’s office said they would be more likely to visit a website recommended by their doctor or observed in the doctor’s office. After seeing those ads, 31% of patients said they would be more likely to fill a prescription and 34% would be more likely to take that medication as prescribed.
The financing will be used for two things: to help Outcome Health move forward with its plans to work with 70% of physician offices in the U.S. by 2020 — it currently works with about 20% — and to evaluate whether to take its business overseas in 2018.
“One of our core goals is the need to get a larger footprint,” said Blake Chandlee, Outcome Health’s EVP of industry solutions and emerging businesses. He joined the company in April after serving as global VP of Facebook’s global partnerships and solutions engineering team.
The deal, according to the company, values Outcome Health at $5 billion. Investors include Goldman Sachs Investment Partners, Alphabet’s investment fund CapitalG, Leerink Transformation Partners, Pritzker Group Venture Capital, and Balyasny Asset Management.
The money will be used to address costs associated with hardware and software development as well as “to accelerate that growth,” Chandlee said.
The company, which now employs about 600 people and has offices in Chicago and New York, was founded in 2006 by CEO Rishi Shah and president Shradha Agarwal. Since it first opened its doors, it has focused on physicians who provide care in outpatient settings to patients with chronic illnesses, like rheumatoid arthritis and diabetes.
In late 2016 Outcome Health, then called ContextMedia, made its first acquisition, buying AccentHealth, a point-of-care provider that put their combined businesses in 42,000 doctor’s offices. Financial terms of that deal were not disclosed.
CORRECTION: An earlier version of this article incorrectly reported the number of drugmakers the company works with. It is 28 of the top 30 companies. It also said that the AccentHeatlh deal added 55,000 offices. In fact, post-acquisition Outcome Health works with 42,000 offices.