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Digital health companies got pummeled by Wall Street in 2024 as industry adapts to post-Covid slowdown
- Most of the public digital-health companies saw a decline this year, with some filing out of business. Companies had to refocus on profitability and a muted growth environment.
- Digital health start-ups raised $29.1bn in 2021 but this momentum died down as the Covid-era boom slowed.
- Progyny, which offers benefits solutions for fertility and Teladoc Health, which once dominated virtual-care, have both dropped this year by over 60%.
- Dexcom, which makes devices for diabetes and glucose management, is down more than 35% year to date.
- 23andMe, the genetic testing company, which was valued at $3.5bn when it went public via a SPAC, is now worth less than $100m and CEO Anne Wojcicki is trying to keep it afloat.
- Hims & Hers Health, Doximity and Oscar Health, the tech-enabled insurance company co-founded by Thrive Capital Management's Joshua Kushner, saw impressive growth this year.
- Two digital health companies, Waystar and Tempus AI, went public this year.
- Commure, a private company, which offers tools for simplifying clinicians' workflows, acquired medical AI scribing company Augmedix for about $139m
- The sector is adjusting to a post-pandemic period and companies are figuring out how to impact the 'triple aim' of healthcare – better care, more convenient, lower cost.
- Overall, 2024 was a year of inflection and cash burn rates slowed, pushing companies to work towards profitability instead of just growth.
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