In our Friday newsletter, we recap the biggest news story of the week so you don’t miss out on the latest trends, developments, and acquisitions in digital health. In case you missed it (ICYMI), this round-up will catch you up on the top stories from the past month.
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#1 Story: Teladoc’s stock dive and the future of telemedicine
The story: Teladoc, a virtual health company that soared during the pandemic, recently reported a $6.7 billion loss in the first quarter of this year. This may signal that virtual visits, which were the main method of connection with a care provider during the pandemic, may be decreasing in popularity as we transition to a post-pandemic world.
Why it’s Notable:
- For companies that enjoyed accelerated growth due to the pandemic, it may be difficult to sustain. Companies that lack strong strategies for keeping patients and providers engaged as we transition back to in-person visits are now seeing major drops in share prices.
- New to the public market digital health companies and those with recent SPAC deals are struggling. A recent report showed that “companies that made their public exit in 2020 and 2021 experienced a 55% drop in stock price, compared with a 17% dip for those that went public before 2020”.
Industry Implications:
- For telehealth companies, a rollback or lapse of emergency regulations in some states that previously allowed physicians to provide care across state lines during the pandemic may be contributing to their post-pandemic roadblock.
- An increase in competition in the telehealth space may also be a limiting growth factor for early companies. One example is Amazon, which expanded its virtual and in-person care services to its US workers nationwide. The service is also offered to other companies as an employee benefit.
Get the full story here
In other news...
#2 Story Snapshot: Cerebral is pausing prescriptions of controlled substances
The story: In the past few months, Cerebral, a telehealth company that offers long-term online care and medication management for mental health conditions, has been accused of overprescribing Adderall and other stimulants. Following these accusations, Truepill, Cerebral’s preferred pharmacy, has paused prescriptions of controlled substances to treat ADHD and other pharmacies like CVS and Walmart have blocked or delayed Cerebral prescriptions as well. In response, Cerebral is taking a number of steps to “prioritize patients safety and clinical quality”, including changes in leadership and changes to their ADHD treatment programs.
Get the full story here
#3 Story Snapshot: Google snatches up FDA’s former digital health chief
The story: Tech giant Google is amping up its healthcare strategy with the hire of Bakul Patel, the FDA’s former digital health chief, who will develop and lead the company’s digital health and regulatory strategy. In the last few months the company has added new hires, reshuffled current employees and entered into new partnerships. Patel spent 13 years at the FDA during which time the regulator launched a center of excellence to oversee digital health products. Patel also helped develop the FDA’s framework for reviewing AI products.
Get the full story here
