Digital health company leverages ‘behavior change’ model to prevent and slow the progress of multiple chronic conditions.
Tech-enabled preventive healthcare company Omada Health aims to raise $158 million in an initial public offering that reportedly values the company at around $1.1 billion. Since 2012, Omada has evolved from a virtual diabetes and weight management provider into a comprehensive prevention platform, which is primarily focused on driving “behavior change” to improve the health of its members.
By targeting the root causes and early stages of chronic diseases such as diabetes, hypertension, and obesity, Omada aims to prevent and slow their progression, reduce complications, and improve its members’ quality of life. The company has raised more than $500 million to date, including a $192 million Series E funding round in 2022, and now plans to list on the Nasdaq exchange under the ticker symbol “OMDA” following significant recent growth in its revenues.
Omada’s digital health model leverages connected devices, real-time data sharing, and personalized behavioral interventions to support individuals between clinical visits. The company’s approach combines various technologies, including AI-driven tools, with personalized human coaching to deliver virtual management of chronic conditions, include programs for prediabetes, diabetes, hypertension, musculoskeletal conditions, and GLP-1-based obesity care.
Participants receive kits with devices including smart scales, blood pressure readers and continuous glucose monitors, which are coupled with AI-enabled apps – such as “nutritional intelligence” tools – to help members adopt and sustain healthier behaviors. By integrating its members’ data into their electronic health records, Omada also aims to enable primary care providers to make more informed decisions and intervene earlier.
The company has a significant focus on demonstrating that its approaches are evidence-based and has published validated outcomes in at least 29 peer-reviewed publications. It also claims to deliver significant cost savings for employers – suggesting it can generate more than $2,000 in medical cost savings per member after two years – and boasts a 90% three-year customer retention rate.
The exact timing of the Omada IPO has yet to be announced.
