San Francisco-based Omada Health has raised $50 million in new funding, led by commercial partner Cigna. Civilization Ventures and Sanofi Genzyme BioVentures also contributed to the round. Omada last raised money in September 2015, when it took in $48 million. This latest round brings the company’s total funding to $127.5 million.
Along with the funding, Cigna will also expand its collaboration with Omada by offering the digital chronic condition prevention program at no cost to members with prediabetes as well as those with an elevated risk for conditions such as heart disease and hypertension. Cigna first evaluated Omada’s digital program in 2015, and has plans to expand availability over time. The health insurance provider has been relatively active with digital health initiatives in the past couple of years, most recently working with Microsoft to offer a holographic-powered game to facilitate health screenings, adding a fingerprint reader to their app, and expanding their telehealth coverage to include behavioral health.
“Cigna is a world leader in using behavior science to help customers change their habits, improve their health, and reduce their risk of chronic disease,” Cigna’s Chief Medical Officer Dr. Alan M. Muney said in a statement. “Our work with Omada will further that expertise. This relationship is more than an investment or simple collaboration -- it’s an important step toward the future state of healthcare. Omada Health’s mission and ours are very closely aligned. That alignment will drive proven, outcomes-oriented performance.”
Of all the digital programs out there that target behavioral health to help people prevent chronic conditions, Omada is one of the largest, counting some 100,000 people who have enrolled on its CDC-recognized National Diabetes Prevention Program. Omada has also been active in running and publishing clinical validation studies – the company recently published their seventh – and launched their own Clinical Advisory Board last month. The company’s program has shown to have a positive impact across underserved populations as well as seniors and veterans, and it will be available to Medicare beneficiaries in 2018.
“We love when our commercial partners invest, and Cigna’s lead on this fundraising round is further validation that Omada’s behavior change approach to chronic disease prevention is driving real results in the real world. We look forward to working with the Cigna leadership to deliver personalized, adaptable chronic disease prevention to their membership,” Omada CEO Sean Duffy said in a statement. “As Omada expands further into the health plan and health system space, we are fortunate to be working with some of the most well-established and innovative companies in the healthcare industry.”
Several other existing investors also contributed this round, including US Venture Partners, Andreesen Horowitz, Norwest Venture Partners, Humana, Kaiser Permanente Ventures, Providence Ventures, dRx Capital and GE Ventures.
