Virta Health Raises $ 133 Million to Expand Diabetes Reversal Platform

Virta Health, a startup that offers diabetes recovery programs, has deposited $ 133 million in equity finance, led by Tiger Global, in a bank.

According to the company, Series E funding raised the company’s valuation from $ 1.1 billion in December to $ 2 billion.

Based in San Francisco Power health We are planning an approach to use the funds to expand our virtual metabolism clinic and reverse chronic metabolic conditions such as type 2 diabetes, prediabetes and obesity.

The new capital will not only help support the growth of research and product innovation, but will also enable Virta’s commercial team to meet the demands of employers, health insurance, and government for diabetes reversal, executives said. Said.

“The standard for diabetes treatment was more medication, more weight gain, and more pain. The reversal of diabetes changes this,” Sami Inkinen, co-founder and CEO of Virta Health, said in a statement. Stated. “We have shown the way for people to live a life free of medication and diabetes. This investment is to reach more people and make the diabetes reversal mainstream.”

According to company executives, the investment in Virta Health and the company’s continued growth show that there have been changes in the way chronic diseases are considered and treated.

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“Virta is redefining how to treat diabetes and other chronic illnesses, resulting in significantly better health and significant cost savings,” Tiger Global’s Scott Schleifer said in a statement. I will. Valuable benefits to provide to more employers and health insurance everywhere. “

The company was founded in 2014 with the ambitious goal of improving 100 million people with type 2 diabetes by 2025. Technology executive Inkinen launched Virta Health after regular health examinations revealed an increased risk of type 2 diabetes. Active athlete.

According to the company, Inkinen has studied the science of type 2 diabetes and an increasing number of scientific studies on the health effects of carbohydrate restriction and metabolism.

Virta uses a digital platform to help users regulate their blood sugar levels and eliminate the need for diabetes medications. Patients have nearly 24 hours access to certified clinicians and health coaches to help them develop their diet and promote behavioral change. The goal is to free patients from medication, and Virta states that the model promotes long-term compliance with nutritional interventions that can stop the progression of chronic disease and even reverse it.

A peer-reviewed clinical study evaluating the Virta Health program found that 94% of patients taking insulin reduced or eliminated their dose in one year and 63% of all diabetes prescriptions were eliminated. The company says.

The decrease in medication co-exists with an average decrease in HbA1c (measured blood glucose) of 1.3%. This is comparable to drug therapy. Virta’s weight loss results are nearly 150% above the National Diabetes Prevention Program goals and FDA benchmarks for weight loss drugs.

For healthcare payers, these improvements could lead to a total savings of an estimated $ 5,000 per patient per year, according to Virta.

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Almost half of adults in the United States suffer from type 2 diabetes or prediabetes. The COVID-19 pandemic made things worse. People with diabetes are at increased risk of serious illness from COVID-19 and are twice as likely to die of illness as people without diabetes.

Startups work with over 100 organizations. Large employers, health insurance and government agencies are increasingly interested in adding reversal solutions to their benefit portfolio, and Virta is experiencing a surge in demand, with growth rates near year-over-year. It has risen to 200%.

Series E funding will almost double the company’s valuation to $ 2 billion in just five months, following the recent $ 65 million raise in December 2020. Virta has raised $ 366 million so far.

According to the company, its continuous remote care model has been very successful for underserved patients such as rural Americans, food deserters, veterans, Native Americans, and the elderly. ..