OncoHealth secures strategic investments from Arsenal Capital Partners and McKesson Corporation
Investment to accelerate continued innovation of its digital-first oncology platform
ATLANTE, May 9, 2022 /PRNewswire/ — OncoHealth, the leading digital health company dedicated to oncology, today announced that it has received strategic investments from Arsenal Capital Partners (“Arsenal”), a private equity firm specializing in building transformational healthcare companies, and McKesson Corporation (“McKesson”). The investments will support OncoHealth’s innovation and delivery of its oncology-specific digital health solutions for people with cancer, and Arsenal will take a majority stake in the company. Additional financial terms of the transaction were not disclosed.
Since 2017, the FDA has approved more than 285 new cancer indications, providing people with cancer with more treatment options than ever before, but also increasing both the complexity and cost of care. The demand for oncology services is expected to increase rapidly, due to an aging population and improving cancer survival rates.
“Arsenal is focused on helping build businesses that tackle the most pressing challenges in healthcare,” said John Di Giovanni, an investment partner of Arsenal. “The landscape of oncology is undergoing dramatic changes, with the unprecedented rise of new cancer treatments increasing the complexity and cost of care. By combining data, digital technology and clinical expertise, OncoHealth removes administrative burdens for health plans and providers, making it easier to align stakeholders and improve the patient experience. »
OncoHealth helps health plans, employers, providers, patients and life science researchers navigate the physical, mental and financial complexities of cancer through technology services and real-world data. Through its digital health solutions for treatment review, real-world evidence and supportive telehealth in oncology, OncoHealth enables its customers to better understand trends, provide evidence-based care, support patients and manage costs for all types of cancer. Today, the company works with 16 health plans, 9,200 providers and five life science partners.
“Oncology is a critical part of our company’s growth strategy, and we are deeply committed to addressing unmet needs in this area,” said Brian Tyler, Chairman and CEO, McKesson. “McKesson’s unparalleled oncology ecosystem helps accelerate the development of new therapies and improves the delivery of personalized care. With Ontada, our oncology information and technology company, and the digital expertise of OncoHealth, we will be able to provide more information, products and services. that make quality care more accessible to cancer patients.
Over the past three years, OncoHealth has experienced phenomenal growth, including expanding its customer base by over 600%, growing its revenue by 45% year-over-year, recruiting key executives in company-wide and expanding its product portfolio with three new oncology-specific solutions. In March 2022, the company unveiled the industry’s first patient-centric digital platform for individuals and their families facing cancer. Iris™ by OncoHealth combines human-centered design, data, empathy, and specially trained US-based oncology experts to deliver personalized, evidence-based oncology care 24/7 through a smart phone.
“OncoHealth is a mission-driven, patient-driven company, and we’ve been fortunate to have world-class investors, passionate employees, and dedicated customers with us as we bring digital health solutions that generate excellent clinical outcomes and provide personalized supportive care to improve the quality of life for people with cancer,” said Rick Dean, CEO, OncoHealth. “Arsenal and McKesson, along with our other key investors, share our strategic vision, and we are committed to continuing to expand our offerings through organic growth and strategic acquisitions to strengthen our leadership in the digital landscape. digital oncology. »
“OncoHealth combines a phenomenal leadership team that has the ambition and ability to transform the cancer patient experience for the better with the technology and solutions to finally make that goal possible,” said Mike Bernstein, an operating partner of Arsenal. “Arsenal is delighted to support OncoHealth as it continues to grow its team, products and innovation for its customers and partners.”
Sidley AustinLLP acted as legal adviser and Evercore acted as financial adviser on behalf of Arsenal. Nelson Mullins Riley & Scarborough, LLP served as legal counsel to OncoHealth.
OncoHealth is a leading digital health company dedicated to helping health plans, employers, providers, patients and life science researchers navigate the physical, mental and financial complexities of cancer through technology services and real data analysis. Supporting over seven million people in the United States and Porto Rico, OncoHealth offers digital solutions for treatment review, evidence and telehealth for all types of cancer. For more information, visit www.oncohealth.us.
About Arsenal Capital Partners
Arsenal is a leading private equity firm specializing in investments in healthcare and industrial growth companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds of over $10 billion, has made more than 250 investments in platforms and add-ons, and made more than 30 achievements. Arsenal invests in industry sectors in which the company has significant prior knowledge and experience. The company works with management teams to create strategically important businesses with market-leading positions, high growth and high added value. Visit www.arsenalcapital.com for more information.