The diagnostics and drug-development behemoth Labcorp is stepping up its women’s health offerings through its recent purchase of Ovia Health.

Formerly known as Ovuline, Ovia Health is a digital health platform designed for the complete family care continuum. It lets users track their menstrual cycles while giving insights into fertility. It also monitors their baby’s development and supplies educational resources along the way.

Additionally, the platform has pathways for LGBTQ+ parenting, behavioral health, social determinants of health and return to work.

Over the course of its existence, Ovia says it has served more than 15 million families and is used by a number of universities, research groups, employers and health plans. It has about $20 million in annual revenues.

Labcorp did not disclose the details of the deal, but said it will be a new step into the femtech market. Last year, the two companies began a collaborative relationship after Labcorp’s Venture Fund invested in Ovia.

“Patients, doctors and health systems are increasingly using digital health solutions to inform health care and treatment options,” Dr. Brian Caveney, chief medical officer and president of Labcorp Diagnostics, said in a statement.

“We’re excited to expand our leadership in women’s health solutions by bringing Ovia Health’s trusted health content and easy-to-use digital platforms to our patients and customers. We welcome Ovia Health’s innovative and dedicated team to Labcorp and look forward to bringing the combination of our strengths in women’s health to our customers.”

Ovia’s tech-enabled offerings will complement Labcorp’s existing testing, screening, educational support and clinical trial options for OB-GYNs and primary care doctors.

“Joining Labcorp enables us to broaden our impact and improve every woman’s opportunity to have a healthy pregnancy and access necessary care and resources,” Paris Wallace, Ovia Health’s CEO and cofounder, said in a statement.

“Our combined capability will enable us to significantly expand our reach, enrich our content and explore new methods of promoting a holistic approach to improving women’s health. We’re particularly excited about developing new products and services with Labcorp that fulfill the unmet needs of individuals with reproductive health conditions.”

WHY THIS MATTERS

The femtech market is a rapidly growing area of digital health. In 2019, Pitchbook found that women's health companies generated $820.6 million. It estimates that that could grow to $3 billion by the end of 2030.

Despite its growth, femtech accounts for a fraction of digital health fundings, according to Rock Health. It found that only 3% of the digital health deals in the U.S. since 2011 have focused on women’s health.

Of that percentage, a majority of the funding has gone to companies targeting fertility, pregnancy or motherhood. Rock Health says that 65% of all femtech funding has gone to these areas, while less than 45% of the female population in the U.S. is of reproductive age.

Analysts at Frost & Sullivan anticipate that much of femtech’s growth in coming years will be from shifting its focus away from reproductive health and onto currently untapped market segments, such as menopause, geriatric care and endometriosis.

THE LARGER TREND

Labcorp is not alone in deepening its women’s health services through an acquisition. Earlier this year, D2C virtual care company Ro scooped up Modern Fertility and added its reproductive health offerings to its primary care platform.

Other femtech companies include Natural Cycles, Renovia, Flo, Nurx and Orchyd.