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As the era of value-based care begins, the start-up is targeting biopharma and insurers.
With the second quarter underway, it’s unsurprising that investment in the healthcare-technology sector is heating up. Today’s golden headline comes from Aetion, a software company steeped in real-world data and analytics, and its $36.4 million in Series B funding.
Since its 2013 launch, the New York City-based start-up, which announced its latest cash injection this morning, has been leveraging tech to help pharma and health insurance companies manage the slow but steady shift toward value-based care. Betting on Aetion’s forward-thinking approach, investors have now contributed a total of $50 million to the organization.
“The key for all stakeholders in healthcare is figuring out how to get the most value out of every treatment,” Mohamad Makhzoumi, partner and healthcare information technology investment leader at Aetion’s financial backer, New Enterprise Associates, said. “Aetion’s unique, science-driven analyses drive business decisions that deliver significant return on investment for a wide range of healthcare players.”
New Enterprise Associates led the round—Aetion’s largest yet—and secured Makhzoumi a seat on the board of directors. Amgen Ventures contributed its first dollar to the start-up, joining existing investors Flare Capital Partners, Lakestar, and Oxeon Ventures.
Aetion plans to use the windfall to “meet growing demand” for its software, promote “global adoption” of real-world data regarding treatments, and support outcomes-driven contracting between healthcare stakeholders, according to the announcement. The new money, specifically, will help the company to further develop its platform and hire new staffers.
Carolyn Magill, Aetion’s CEO, claimed the company’s products can help clients understand which drugs are most effective, for which patients and at which time.
“These insights lead to lower costs and better outcomes,” she said. “As the healthcare system moves to value-based care, it’s imperative to understand which medications and treatments deliver the best results.”
Aetion’s software analyzes clinical pathways, helping pharma spotlight the efficacy of its treatments and enabling payers to select treatments that yield better outcomes, at better prices. On the insurer side, Aetion claims, its solutions could guard against premium hikes.
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