Today One Drop announced a string of new deals with Bayer that could bring the digital diabetes-management company nearly $100 million in new funds.
The agreements include the closure of a Series C financing round led by the pharma giant, as well as $64 million in unspecified development commitments and potential commercial milestone payments.
Launched in late 2016, One Drop's wireless blood glucose monitor system and data-driven self-management app is sold directly to consumers and through healthcare channels. Subscribers to the service will receive replacement testing strips through the mail; are able to track their glucose levels, diet, activity and insulin doses through the app; and may receive coaching assistance. Over the last few years, the company has also worked to integrate the app with personal health monitoring platforms such as Apple Health Records.
WHAT'S THE IMPACT?
One Drop said in the announcement that the $64 million agreements are tied to expanding the disease management platform beyond its current focus of diabetes, pre-diabetes, high blood pressure and high cholesterol. Specifically, it highlighted cardiology, oncology and women's health as potential directions, and stressed that such implementations would be focused on whole-person care rather than per-condition offerings.
Bayer, for its part, seems to be focused on the potential that data-driven, user-friendly health-management tools could have on its portfolio.
"Building new digital business models is a key element of our business strategy with the ambition to actively shape the future of healthcare," Jeanne Kehren, head of digital and commercial innovation at Bayer, and a member of its Pharmaceuticals Executive Committee, said in a statement. "We are convinced that a data-driven approach will empower patients to drive better outcomes for themselves and will bring back the person, not the disease, as the point of focus. The new collaboration with One Drop allows Bayer to further accelerate its evolution towards a digital health business and paves the way for new integrated care patient service offerings."
THE LARGER TREND
One Drop made the news this spring with the acquisition of Sano Intelligence's assets. These included Sano's non-invasive connected CGM patch, which One Drop hinted would be a part of its push into new conditions and continuous monitoring.