Digital Healthcare Companies Part 2
Research indicates that Flatiron, PatientsLikeMe and Outcome Health are leading companies in the digital health space which provide access to relevant medical content for patients, and caregivers. The required information on three companies in the digital healthcare space with a valuation of over $200 million has been populated in rows 2-9, columns F-H of the attached spreadsheet.
We began our research by combing the official websites of Flatiron and PatientsLikeMe, as well as business information platforms like Crunchbase, Craft, and Business Insider. Here we were able to locate information on the revenues, funding rounds and valuation of the companies provided in our research criteria, except for PatientsLikeMe.
In order to locate the valuation, our research team went further to search through the U.S. Securities and Exchange Commission (SEC). Since the company is headquartered in the United States, we hoped to find a summary of its financial performance and determine the valuation from there; unfortunately, there was no Form 10-K report found in the commission. We believe this is because the company's securities are not publicly traded, which means that they are not mandated to publish their financial performance.
We also tried to triangulate the information by going through stock valuation platforms such as Corporate Finance Institute. Here we hoped to locate industry expert evaluations of the company with details on stocks and value, unfortunately, there were no reports with this information. We believe this is because it is yet to be traded publicly.
Finally, we attempted to use online valuation tools such as Valuations.com in order to triangulate an estimate of the company's current value. Unfortunately, a thorough understanding of the growth rate and current performance of the company was required in order to generate an estimate. Since we do not have this information, we were unable to use this tool to estimate the company's value. Although our research indicates that the valuation for PatientsLikeMe is not available publicly, we were able to locate a PitchBook report with information on its valuation and funding from 2007 to 2017. However, this report is only available upon request. We then moved on with our research and scoured business news updates, articles and expert opinions on leading companies in the digital healthcare space. After locating some companies from reputable sources such as CNBC and Forbes, we selected the most mentioned (reoccurring) digital health company in our search, which had a valuation above $200 million. This strategy produced our third company — Outcome Health. In order to locate revenue, funding rounds, and valuation data for the newly identified company, we repeated our initial procedure by visiting the company's official website, and business information/analytics platforms. The valuation for Outcome Health was calculated by adding the equity raised ($500 million) with the company's pre-money valuation ($5 billion), which amounts to $5.5 billion.
Finally, we went on to search for the number of users on these digital healthcare platforms, as well as the number of employees. In order to achieve this, we scoured the official websites yet again and found corroborating evidence from recently published news updates and business articles. Using this means we located information on all companies except for the number of users on Outcome Health.
- Flatiron is valued at $1.2 billion and has raised total funding of $313 million. The company has over 2,500 OncoEMR clinician users and 700 employees. It generates about $200 million in revenue yearly.
- PatientsLikeMe has raised total funding of $127 million with annual revenue of $23.7 million. It has over 600,000 users and 151 employees.
- Outcome Health has raised $5.5 billion and generates a revenue of $221.5 million. The company has 200 employees and receives about 16,300 website visits monthly on its website.