Omada Health Upcoming IPO: Improving market health could support IPO

The majority of Americans live with chronic conditions — like diabetes and arthritis — and 90% of healthcare spending in the U.S. goes toward chronic and mental health conditions, according to data sourced by the CDC. ⁴

These problems aren't going away overnight, but companies like Omada Health are trying to solve some of these issues. Omada is doing so not by introducing new pharmaceuticals but instead by offering virtual care programs paired with smart devices aiming to help individuals such as by improving health plan adherence and enhancing prevention.

Since launching in 2011, the company has raised nearly $500 million and reached unicorn status in 2022. ⁵ In the summer of 2024, Omada confidentially filed its S-1 form with the SEC to go public, according to a Business Insider report in October. ⁶

While Omada has not confirmed Business Insider's reporting, speculation about an Omada Health IPO had long been brewing, and this report comes on the heels of a separate Business Insider exclusive that another virtual care company, Hinge Health, is planning to go public as soon as early 2025. ⁷

Likewise, Omada could potentially go forward with its IPO in 2025 as public market conditions potentially improve, according to Business Insider. ⁸

Omada Health: Company background

Omada Health is a virtual care provider that helps patients manage chronic conditions like diabetes. The company provides smart devices, coaching, and personalized care plans around diet, exercise, and medication adherence.

The company works both directly with individuals, as well as organizations such as employers, insurance plans, and healthcare systems looking for ways to improve patient outcomes.

Omada was founded in 2011 by Sean Duffy and Adrian James, spun out of their work at design consultancy Ideo.⁹

Solving the gap between healthcare solutions and actions

For some healthcare issues like diabetes, there are existing medications, devices and behavioral solutions that can improve patient outcomes. However, putting these solutions in front of patients doesn't always lead to intended results, as it can be difficult for patients to adhere to recommendations.¹⁰

So, Omada Health's virtual care aims to close that gap, both by providing more personalized care plans and providing accountability to help patients stick to those plans. According to the company, Omada has led to 200% better goal achievement and 250% better health outcomes.¹¹ Omada has also published peer-reviewed studies showing the improved health outcomes and medical cost savings that can come from its programs.¹²

Omada has four main areas of care: chronic disease prevention, diabetes, hypertension, and musculoskeletal issues.¹³

These conditions affect significant swaths of the population. According to data sourced by the CDC, 38 million Americans have diabetes and 98 million have prediabetes, which costs Americans an annual total of $413 billion in medical costs and lost productivity.¹⁴

Omada Health stock price history

Omada Health's Forge Price is $4.14 as of early October 2024, which is approximately a 37% decrease since its last primary funding round in 2022.¹⁵ Forge Price is a derived data point that reflects the up-to-date price performance of venture-backed, late-stage companies, and is calculated based on a proprietary model incorporating pricing inputs from primary funding round information, secondary market transactions, and indications of interest (IOIs) on Forge.

Omada's Forge Price reached as high as $9 per share in early 2021, and it hit a low of $2.61 in late 2022, where it stayed until early 2024. So, while Omada is still trading at a discount to its last primary funding round, it's up about 45% over the last year. In comparison, the Forge Private Market Index — a broad measurement that reflects the up-to-date performance and pricing activity of venture-backed, late-stage companies that are actively traded in the private market — is down -2.9% in the past year.¹⁶

Omada funding history and private market valuation

Omada raised over $6 million for its Series A in 2013 at a valuation of $16.11 million, with investment from U.S. Venture Partners, The Vertical Group, and Founder Collective, among others. The company then had its Series B in 2014, raising $23.33 at a post-money valuation of $60.57 million from investors such as Andreessen Horowitz and Kaiser Permanente Ventures.¹⁷

Through subsequent rounds, Omada also brought in investment from the investment arms of several other major healthcare companies such as Cigna Ventures, Providence Ventures, and Humana Ventures.¹⁸

In 2022, Omada closed its Series E, raising $192 million in a round led by Fidelity, along with other prominent investors such as Wellington Management.¹⁹ This round raised Omada's valuation to $1.02 billion.²⁰

However, Omada's price per share at the time of its Series E was $6, and its Forge Price is now $4.14, indicating its valuation has dropped below $1 billion. While Forge Prices can be volatile due to the limited liquidity of private market stocks like Omada, the inclusion of investors like Fidelity has resulted in some publicly reported marks, such as Fidelity marking the price per share at $3.81 in July 2024.²¹ Thus, for the time being, Omada's valuation seems to remain below that of its last primary funding round.

Looking ahead

Omada has not publicly disclosed if it has indeed filed with the SEC or not, nor are there any clear indications of expected valuation or IPO timing. That said, if Business Insider's reporting is accurate, then an Omada IPO could come to fruition in 2025 as the conditions for IPOs potentially improve.

Check back here or take a look at Forge’s upcoming IPO calendar to stay in the loop about a possible Omada Health IPO and other pending public offerings.

If you’re interested in investing in private companies like Omada Health before they go public, read more about pre-IPO investing or register on Forge Markets today to get started.