Ada Health Secures $90M Series B Funding - Leaps by Bayer Leads

Ada Health Secures $90 Million in Series B Funding

The digital health sector is experiencing substantial growth, as evidenced by Berlin-based Ada Health’s recent closure of a $90 million Series B funding round. This investment was spearheaded by Leaps by Bayer, the venture capital division of the pharmaceutical company Bayer AG. Additional investors included Samsung Catalyst Fund, Vitruvian Partners, Inteligo Bank, F4, and Mutschler Ventures.

A Decade of Development

Ada Health previously secured a $47 million Series A round approximately four years ago. However, the company’s development of its symptom assessment technology spans nearly a decade, initially supported by private funding from individual investors across Europe.

The company’s initial focus was on creating a decision support system for medical professionals. Subsequently, Ada Health shifted its strategy to directly engage patients through an AI-powered symptom assessment application.

Competitive Landscape and Validation

Ada Health operates within a competitive market alongside companies like Babylon, Buoy, K Health, Mediktor, Symptomate, WebMD, and Your.MD. However, Ada asserts its app is the most frequently used and highly rated among users. This claim is supported by a peer-reviewed study published in the BMJ, which compared the performance of eight competitor applications, finding Ada Health leading in condition coverage, accuracy, and safety.

Extensive Medical Knowledge Base

A key differentiator for Ada Health is its comprehensive medical knowledge base, encompassing approximately 30,000 ICD-10 codes – the standardized alphanumeric codes utilized by doctors for diagnoses. According to co-founder and CEO Daniel Nathrath, this represents the most extensive coverage available in the industry.

Significant User Adoption

Launched in late 2016 and remaining freely accessible, the Ada Health app has been downloaded over 11 million times across 150 countries. Users have completed more than 23 million assessments using the tool, which Nathrath describes as providing “24/7 access to your trusted family doctor.”

Global Expansion Plans

Currently, the app supports 10 languages. The newly acquired funding will be directed towards achieving substantial global scalability.

“Our ambition is, within a few years, to have a billion people – rather than the current 11 million – utilizing our technology,” states Nathrath. “We believe collaboration with the appropriate investors will accelerate our growth and extend the benefits of our technology to a wider audience.”

Market Leadership and User Engagement

“As far as I am aware, we are the most utilized AI symptom-assessment technology globally, with 11 million app downloads,” Nathrath adds. “We also hold the distinction of being the most rated and reviewed app in the medical category on both the App Store and Google Play Store – achieved in just four years, with around 300,000 ratings and reviews, predominantly five-star. We’ve gained significant traction, but believe this is only the beginning.”

The Rise of Digital Health

Nathrath observes that digital health is reaching a pivotal moment, with recognition from users, healthcare systems, governments, insurers, and pharmaceutical companies. He believes digital health solutions are now firmly established.

Enterprise Solutions and Integration

In addition to its direct-to-consumer app, Ada Health offers enterprise solutions, allowing partners to integrate its triage technology into their websites and digital services. This enables them to provide an initial point of contact for users, directing them to appropriate services and equipping clinicians with patient-provided health information and AI-driven assessments prior to appointments.

Sutter Health Partnership

Sutter Health in the Bay Area serves as a publicly acknowledged customer utilizing Ada’s enterprise offering.

“Sutter Health has integrated Ada into its homepage and app, allowing users to access it as a digital front door to their services,” explains Nathrath. The integrated version differs from the standalone app by offering fully integrated services. For example, if the app recommends an emergency room visit, users can directly book an appointment.

Enhanced Clinical Workflow

“Furthermore, when an appointment is scheduled, the results of the Ada pre-assessment are shared with the healthcare professional, providing them with a comprehensive overview of the patient’s symptoms and potential diagnoses, aiding in informed decision-making and targeted investigations.”

Streamlined Data Management

Ada’s enterprise solutions also provide the benefit of structured patient data, allowing clinicians to easily import information into their documentation after confirmation, saving valuable time per patient. “Saving even a few minutes per patient allows healthcare professionals to dedicate more time to those with critical needs, rather than those presenting with minor ailments,” Nathrath emphasizes.

Supporting Doctors and Informal Decision Support

While providing support for doctors through its enterprise solutions, Ada Health also notes that its patient-facing app is increasingly used for informal decision support by medical professionals.

Doctors are increasingly utilizing the app alongside their patients or recommending it to them, inquiring about the app’s assessment results.

The Future of AI in Healthcare

Nathrath predicts a central role for AI in healthcare, given the persistent imbalance between healthcare demand and the availability of professionals.

He acknowledges the benefits of telehealth platforms in improving efficiency but argues they do not address the fundamental issue of healthcare professional shortages.

Strategic Shift to AI Focus

Ada Health previously offered a telehealth service but has since concentrated its efforts exclusively on AI development, opting to partner and integrate with other healthcare providers.

A Multisided Platform Approach

“We envision Ada as a multisided platform,” Nathrath explains. “We will integrate various data sources – including sensor data, wearable data, lab results, and genetic testing data – and collaborate with telehealth companies, insurers, and governments to provide a comprehensive healthcare solution.”

Ada as a “Gatekeeper” to Care

“Ada functions as the initial gatekeeper in a patient’s care journey, guiding them to the appropriate next step,” Nathrath summarizes.

A “Personal Operating System for Health”

The overarching vision is for Ada to evolve beyond a simple app into an omnipresent “personal health companion” – a “personal operating system for health” – capable of delivering preventative healthcare by aggregating data and identifying health issues early, enabling timely and cost-effective interventions.

Data Integration and Early Warning Systems

“We are building much more than a symptom assessment technology,” Nathrath states. “This includes incorporating lab results, sensor data, wearable data, and even genetic testing information. Integrating this data allows for the creation of an early warning system for your health, which would be beneficial for population health and healthcare systems, enabling early intervention when a problem is relatively minor.”

Pharma Investment and Strategic Partnerships

The investment from Bayer is particularly noteworthy, with potential for a strategic partnership. Nathrath suggests the pharmaceutical industry recognizes the transformative potential of digital health and seeks to avoid becoming obsolete.

Opportunities for Pharma

Successful AI-driven health interventions could reduce pharmaceutical costs through earlier intervention and preventative care, making investment in digital health a sound business strategy for pharmaceutical companies. Furthermore, the scalability of the technology and its ability to provide a broader view of population health could potentially increase demand for medications.

Collaboration for Better Patient Outcomes

“We are excited about the possibilities of collaborating with pharmaceutical companies to deliver a better healthcare experience to patients,” Nathrath says. “Bayer’s diverse portfolio, encompassing consumer health and pharmaceuticals, aligns well with the common cases seen within Ada, often leading to recommendations for over-the-counter medications. Additionally, their expertise in rare diseases complements our strengths in that area.”

Research Potential and Data Privacy

The health data generated by Ada’s app also presents significant research opportunities for pharmaceutical companies involved in drug discovery.

Nathrath emphasizes that user data is never used for research without explicit consent, adhering to Europe’s General Data Protection Act.

Aggregated Data Insights

However, Ada can conduct studies based on aggregated user data, such as an analysis of children’s mental health during COVID-19 lockdowns, comparing regions with school closures to those without. The study revealed a significant increase in depression rates among children in Germany, where schools were closed, while Switzerland, where schools remained open, experienced no increase and even a slight improvement in mental health.

Early Outbreak Detection

In another example, analysis of U.S. app usage data demonstrated Ada’s potential to detect a measles epidemic slightly earlier than the CDC’s official announcement.

“The potential for early outbreak detection is significant,” Nathrath suggests.

A Collaborative Future

“We believe there are numerous ways we can collaborate with researchers, policymakers, and pharmaceutical companies for the benefit of patients,” he adds. “The mission of everyone I spoke with at Bayer was similar to ours – to help people.”

Dr. Jürgen Eckhardt, head of Leaps by Bayer, stated: “Investing in breakthrough technologies that drive digital change in healthcare is one of the strategic imperatives for Leaps by Bayer and for the entire field of healthcare. Ada’s truly transformative technology, combining powerful artificial intelligence with an emphasis on medical rigor and high levels of clinical accuracy will lead the way in helping more patients and consumers in achieving better health outcomes sooner by intervening earlier in their healthcare journey.”