Dive Brief:
Chronic condition management company Omada Health filed to go public on Friday, marking the latest digital health firm to wade into the turbulent public markets after years of stagnation.
Omada reported revenue of almost $170 million in 2024, up 38% year over year, according to a securities filing. The digital health company also narrowed its losses, posting a net loss of $47.1 million last year compared with $67.5 million in 2023.
Omada’s filing closely follows another digital health firm moving to go public. Hinge Health, which offers virtual physician therapy, filed for an IPO in March.
Dive Insight:
Founded more than a decade ago, Omada offers digital management programs for conditions like diabetes, obesity and hypertension. Care teams work with patients to build plans for treating their condition and equip users with connected devices like blood pressure cuffs or digital scales.
Omada works with employers, health plans, pharmacy benefit managers and health systems to offer the programs to their customers. More than 679,000 people were enrolled in one or more of its programs as of the end of March, according to the company’s securities filing.
Omada argues there’s a significant market opportunity in helping patients manage chronic conditions, given the prevalence of the diseases and their contribution to healthcare costs.
“The hard truth is that many of our country’s billing, care, regulatory, and cultural models center around ‘the visit,’ a notably ineffective mode of providing care for chronic needs,” Sean Duffy, Omada co-founder and CEO, wrote in the filing. “Doctors do their best in the narrow window of a visit to inspire change and improve health, but they are unable to do much for patients between visits — which is where most of life happens.”
Omada’s move toward a public exit comes as the number of IPOs in digital health have withered in recent years. In 2021, nearly two dozen firms notched a public exit as the sector saw record-breaking levels of venture capital investment.
But the IPO market began to sag the following year as funding declined and inflation and interest rates rose. Zero digital health companies completed a public exit in 2023, according to venture capital firm and consultancy Rock Health.
However, the sector saw some signs that opportunities for digital health IPOs were improving last year, when firms like healthcare payments company Waystar and precision medicine company Tempus AI went public.
More could come this year, especially if firms that go public early in 2025 perform well, experts told Healthcare Dive late last year. Still, economic conditions have been turbulent so far this year, as healthcare companies weigh the potential impact of tariffs and cuts to safety-net insurance program Medicaid.
