H1, a technology platform that hosts healthcare provider profiles for life sciences clients, has acquired Portland, Oregon-based Carevoyance to drive a breakthrough in the medical device space.
The deal closed in late July and the New York City-based company executed seven figures in cash and shares, Ariel Katz, co-founder and CEO of H1, told Fierce Healthcare. All six Carevoyance employees will be retained and the company will operate as an independent subsidiary.
Katz said there is no shortage of parallels between the two companies, both in terms of culture and product.
H1, for example, acts as a “LinkedIn for Healthcare”, collecting comprehensive profiles of 10 million healthcare professionals and thousands of institutions around the world.
This data, which is regularly updated by the company’s data team and other medical users, can provide life sciences companies seeking key thought leaders or potential clinical trial sites with information about a vendor’s research portfolio. , patient mix, social media activity and more.
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Carevoyance, meanwhile, has created a similar healthcare provider data collection tool for medical device companies looking to devise a specific sales strategy.
According to its website, Carevoyance has accumulated data on more than 1.2 million physicians and more than 6,000 healthcare organizations. Katz said the company also counts 30 of “the largest device companies” among its customer base, representing a clear expansion path for the first half.
“The vast majority of our work has been in therapeutics, pharmaceuticals. This company, Carevoyance, they only work on devices, ”Katz said. “The regulatory path to launching a device is different… the value propositions are different and the customer overlap is like zero; actually, it is one. We met through Abbott, which was our only device customer at the time, and they introduced us. “
There are also signs that demand for and investments in medical device market intelligence are increasing, Katz said. AcuityMD, a competitor to Carevoyance, recently raised $ 7 million from investors at the same time as more established names like Ultimate health care they are increasing their focus on the medical device segment, he said.
“Money on medical devices and data payments is growing like crazy; the need for something like Carevoyance and H1 is growing like crazy, “he said. Big Pharma and biotech have always been … data-heavy businesses. The device is starting to have a trend towards that … and this is how we see this market [as] very early and we want to push it forward. “
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The first semester has been the recipient of growth investments itself. Since its launch in 2017, the startup has raised more than $ 70 million in multiple rounds of funding, and according to Katz, it now makes more than $ 10 million in revenue. It also has around 200 US employees and has a presence in many other countries.
For its newfound push in the device space, H1 doesn’t want to discount Carevoyance’s brand recognition. Katz said. The new subsidiary will keep its name and platform separate in the short term before gradually integrating with H1 and receiving new technology and equipment investments.
“When we met Ariel and the H1 team, it was clear that they were building something special,” Anatoly Geyfman, founder and CEO of Carevoyance, said in a statement. “After getting to know the team and its mission, we became convinced that joining forces with H1 would not only give us the scope and resources to continue serving our current and future customers at an even greater level, but it would also accelerate our two companies in our combined vision to help provide the right treatment to the right patients at the right time. We are very excited to join the world-class team at H1 in collectively pursuing this goal. “