Diabetes management can be time-consuming, cumbersome and expensive.It may also be unaffordable and inaccessible, especially for those who are uninsured or underinsured, startup leaders say 9am.healthSo instead of helping navigate the existing health system, this virtual diabetes clinic in San Diego set out to create an entirely new system of care for people with type 2 diabetes and prediabetes.
“We offer a virtual, integrated diabetes care experience that includes labs, doctor visits, treatment plans, and a care team with 24/7 access, all rolled into one seamless experience,” said co-founder of the company 9am.health person and CEO Frank Westermann said in an email.
To drive its ambitious goal of transforming diabetes care and support the company’s rapid growth, 9am.health has raised $20 million in funding, including $16 million in Series A funding announced Wednesday. It’s also backed by a seasoned wellness executive who has taken the helm of two startup-turned-unicorn companies.
“We saw an opportunity to build a new health care system,” said Glen Tullman, CEO of the newly formed unicorn company transparent and managing partner of 7wireVentures, in an email.
7wireVentures and Human Capital co-led the Series A, with participation from new investors StartUp Health and Leaps by Bayer and existing investors Define Ventures and Founders Fund.
“Partners like 9am.health understand that millions of Americans are looking for a new model of access to health and care, and that’s what we’re investing in,” Tullman said. “In addition to the growth of the DTC market, as 9am.health moves into the self-insured employer space, I definitely see an opportunity to partner with them in other ways, including through Transcarent.”
In addition to leading Transcarent, a platform used by self-insured employees to more easily access care, Tullman founded Liongo, a data-based health coaching program that can help manage diabetes.that company Sold to Teladoc for $18.5 billion 2020.
“Improving diabetes care has been my mission for a long time,” Tullman said. “I learned about the 9am.health team from their great work building and expanding them [the diabetes management app] mySugr, so there is already a lot of trust. “
9am.health’s Westermann, who, like some other company leaders, has diabetes, co-founded mySugr and serves as its CEO.The application is Acquired by Roche 2017.
Tullman will join 9am.health’s board of directors. The company said he will play a major role in advancing its vision and marketing strategy.
“They have a similar passion for their personal experience with the disease, so there’s no question that investing in their new venture is a smart move,” Turman said.
According to the company, since 9am.health launched in September, it has rapidly expanded in 47 states and Washington, D.C., providing patients with medical care, laboratory diagnostics, medications and personalized treatment plans. The startup plans to aggressively grow its direct-to-consumer business this year while expanding to support the self-insured employer market, offering employees its virtual diabetes care plan as a covered benefit.
The company offers a cash payment plan at a price designed to lower what patients would pay for traditional diabetes care. Its most affordable plan is $25 per month with a quarterly subscription. This pays for medication, free medication shipping and unlimited access to a medical team including doctors, pharmacists, registered dietitians, certified diabetes specialists and educators.
“Our mission is to bring quality, affordable diabetes care to everyone and to be a destination for people living with diabetes,” Westerman said. “We want everyone with diabetes to be able to visit our virtual diabetes clinic and get the medicines, equipment, labs and care they need at affordable prices.”
Tullman sees this as a mission closely related to Transcarent’s mission.
“We see a potential opportunity to partner with companies like 9am.health to address employers’ biggest cost concerns — from surgery to oncology to virtual care to chronic conditions like diabetes,” he said. “Together we can expand the business broadly, but more importantly, improve the lives of millions of people who have been excluded from the traditional American health care system.”
PHOTO: MURAT GOCMEN, GETTY IMAGES
