Current Health Ltd. closed an oversubscribed series B financing, securing $43 million in a round led by Northpond Ventures. The Edinburgh, U.K.-based company will use the funds to scale up its remote care management platform.
Other participants included Lrvhealth, OSF Healthcare, Section 32, Elements Health Ventures, as well as existing investors. In connection with the round, Andrea Jackson, director of Northpond Ventures, and Tripp Peake, general partner at Lrvhealth, will join Current Health’s board of directors.
With this latest infusion, Current Health has raised a total of $66 million to date.
The oversubscribed series B comes on the heels of 3,000%+ year-over-year revenue growth and with consumer demand for virtual care at an all-time high. According to Deloitte, consumer use of virtual visits rose from 15% to 19% from 2019 to early 2020, jumping to 28% when the COVID-19 pandemic hit in April of last year.
“Delivery of health care at home was already a key priority for health care organizations in the U.S. before COVID-19. We see that in the creation of reimbursement models and alternative payment models that incentivized more high-quality health care at home that predate COVID,” Chris McCann, Current Health’s co-founder and CEO, told BioWorld. “COVID has accelerated this shift by several years, also increasing consumer demand for virtual health services. Many consumers have realized through COVID that virtual health services are fast and efficient, and they want those services to continue.”
Founded in 2015, Current Health offers a wearable device and wireless vital signs monitoring to track a patient’s key vitals, such as heart and respiratory rates, relative change in systolic blood pressure, oxygen saturation, skin temperature and movement. Using machine algorithms, the end-to-end platform interprets the data to detect early signs of illness or deterioration and alert providers so they can provide timely care.
The startup currently has three FDA clearances for its device. The first and second are for inpatient and home use, respectively. The third extends the product into a platform via integrations with blood pressure monitors, scales and other measuring tools.
The platform, which launched in July 2019, is currently being used by more than 40 of the world’s top hospital systems and pharma companies to remotely manage more than 11,000 patients daily – newly diagnosed cancer patients at Mount Sinai to high-risk patients at Boston’s South Shore Hospital, including patients with congestive heart failure, chronic obstructive pulmonary disease, COVID-19 and pneumonia.
Pharmaceutical manufacturers, including Astrazeneca plc, are also using the platform to deliver complex therapies at home and support home-based clinical trials. “About half our work today is with pharma,” McCann said, noting the use case for hospitals and companies is fundamentally the same – identifying the onset or progression of disease earlier so that doctors can initiate treatment or change treatment sooner.
Ambitious growth plan
With the new funds, Current Health is focused on “scaling its platform to empower health systems, pharma and other health care organizations to manage all populations – lowest acuity to highest acuity and across therapy areas – safety at home,” McCann said. To that end, the company plans to double its workforce, adding about 50 positions in research and development and another 50 in sales, marketing and growth.
“In 2022, we expect to more than double our headcount again, taking us to 400 people and expanding internationally around the world,” he said.
Scale up in R&D is needed to support an active pipeline. McCann said the company plans to develop a third-generation version of its wearable, which will be smaller and include more vital signs. It is also aiming for FDA clearance and release of several predictive algorithms in 2021.
“As health care moves into the home, pharmaceutical companies are developing new models that go beyond the pill and enable greater delivery at home with fewer side effects at lower cost,” said Northpond’s Jackson. “Current Health’s proven track record of delivering across both pharma and health systems makes them the perfect company to bridge this gap.”