About Flatiron Health
Flatiron Health is a health-tech business devoted to the advancement of cancer therapy and research. We are pioneers in real-world evidence for oncology, providing technology and services to assist patient care and making every patient’s story matter. We collaborate with hundreds of cancer centers, 20+ top global oncology medicines developers, and researchers and regulators worldwide.
Since its founding in 2012, Flatiron has been a subsidiary of the Roche Group. We’ve increased our commitment to advancing research and treatment for patients all across the world under the new leadership of CEO Carolyn Starrett in 2021.
To meet the specific demands of the healthcare systems in Japan, Germany, and the United Kingdom, Flatiron International’s regional companies in these countries will form partnerships with local hospitals and health networks.
Flatiron Health thinks that the cancer problem cannot be “fixed” just by the medical community and that the technology sector must also be involved. There are now almost 500 people working for or with Flatiron, founded in 2012.
They come from various healthcare and technological backgrounds, such as Google and Amazon, cancer treatment facilities ranging from Memorial Sloan-Kettering to small clinics in rural areas of the U.S.
Anonymized data gathered by Flatiron’s software for cancer clinics are shared with pharmaceutical firms and research organizations.
This program is the premier electronic health record platform for oncology professionals. With this platform, Flatiron aims to speed the discovery of novel cancer therapies and enhance patient care by allowing researchers and healthcare professionals to learn from each patient’s experience.
Is Flatiron Health a good company?
A fast-growing firm like Flatiron Health takes a lot of work from its employees. If you can’t commit your life to the firm, or if you have a long commute into New York City, this may not be the place for you. The corporate culture is strong. However, it’s a great location to be employed.
How does Flatiron Health make money?
Many in the digital health and health IT community welcomed the acquisition of Flatiron Health by Roche for $2.1 billion. Many millions of cancer patients will benefit from the insights gained from Flatiron’s vast repository of real-world patient data, making this a huge success story for the company and its investors.
One would expect such a large scale to generate a great deal of interest. Indeed, some observers saw the departure as a much-needed success story for the whole digital health innovation ecosystem. This field has seen billions in venture capital in recent years but only a few successful exits in recent years.
Flatiron’s departure from the digital health industry won’t have the impact that some believe it would, despite my eagerness for large success stories in digital health.
First, a little background about Flatiron.
Stakeholders throughout oncology have long decried the lack of insight into actual world treatment patterns and outcomes. Because less than 5 percent of cancer patients engage in clinical trials, much of what occurs to patients in the real world remains buried, imprisoned in hundreds of separate software systems spanning oncology providers, insurers, and laboratories.
Shining a light on what happens to the remaining 95 percent of patients might yield insights that would aid improve treatment choices, show the way to important new medications and diagnostics, and ultimately improve outcomes for cancer patients.
There has long been a lack of transparency in cancer treatment patterns and results. In the actual world, since only a small percentage of cancer patients engage in clinical trials, much of what occurs to those patients is kept secret and buried deep inside the dozens of different software systems that stretch across oncology providers, insurers, and laboratories.
The remaining 95 percent of cancer patients might provide vital information that could lead to better treatment options, the discovery of novel medications and diagnostics, and ultimately better outcomes for cancer patients if they were well studied.
For this reason, Flatiron’s goal was to collect patient data from EHRs in community oncology offices throughout the country and turn it into a single, comprehensive dataset. For this, a large investment and meticulous data extraction from hundreds of cancer clinics’ EHR systems were necessary.
Flatiron’s investment paid off hugely, first via data licensing arrangements with almost all of the major cancer drug firms and most recently with the sale of the business to Roche for a remarkable price of $2.1 billion.
Finally, a major success story for a start-up startup in digital health and health IT, as well as its investors! Over the next two to three years, we should expect to see a slew of equally successful departures, right?
The tale isn’t as straightforward as it seems to be in healthcare.
There are certain basic differences between Flatiron and most other digital health and healthcare IT start-up startups, which restrict the importance of Flatiron’s success for the sector’s future.
Flatiron Makes Money from Biopharma
Biopharmaceutical businesses like Roche use Flatiron’s business model to generate a valuable asset and sell access to it. For the most part, digital health effort is focused on building solutions and services for other healthcare players, rather than focusing just on biopharmaceutical companies like Flatiron.
The buyer isn’t necessarily the end-user in healthcare since many of these enterprises sell to many stakeholders. Compared to selling to these other stakeholders, selling to pharma has at least three noteworthy benefits.
This industry is well-capitalized, and it has a pressing need to improve R&D efficiency while also distinguishing its commercial goods. Flatiron’s data in oncology is an example of a solution that may be paid for if it provides demonstrable value to the company.
- Digital technology and data sources may be used by biopharma for internal purposes without waiting for regulatory or reimbursement policy changes.
- Even though biopharmaceutical corporations are not known for their agility, the Roche purchase for Flatiron shows that they can move rather rapidly when they are motivated.
- All of this contrasts sharply with the challenges that digital health start-up startups confront when working with clinicians and payers.
For providers and payers, the continuous move from cost per service to value-based care will ultimately generate incentives to invest in technology and services that may help prevent or better manage illness in the long term. Unfortunately, this is not the reality for many digital health start-up startups.
To pay for something now in the hopes of reaping future advantages that may take a year or more, or perhaps never, simply isn’t rewarded by today’s healthcare providers and payers. Constant issues regarding the regulation and reimbursement of digital health technology aggravate these skewed incentives.”
Payers and providers have been forced to experiment with a wide variety of digital health technologies on a limited basis through several pilots while avoiding widespread adoption. There is also a risk that the pilots will not be rolled out widely because of the lengthy sales cycles that digital health businesses have to deal with.
However, employers and consumers are adopting digital health more swiftly for nothing to do with medical benefits.
There are numerous wellness programs and tools for businesses that have little clinical benefit but are still embraced. Companies believe their workers would appreciate having access to them and, in some instances, anticipate future cost savings, which seldom materialize.
At least for the first few months of its usage, wearables and apps have been popular among customers who want to feel better about themselves. As a result, the long-term viability of many digital health enterprises has been doubted in both industries, raising concerns about the viability of these businesses.
The success of Flatiron does not necessarily bode well for the overwhelming majority of digital health start-up startups that do not cater exclusively to the biopharmaceutical industry.
What does Flatiron Health do?
As a New York-based healthcare technology and services firm focusing on cancer research and patient care, Flatiron Health is a household name in the industry. Cancer researchers and healthcare professionals may learn from every patient’s experience using the company’s platform.
Who bought Flatiron Health?
It was reported today that the purchase of Flatiron Health, a healthcare technology and services firm based in New York City, US, had been completed by Roche (SIX: RO; ROG; OTCQX: RHHBY).
Flatiron Health revenue
According to Forbes, Flatiron’s yearly revenue is close to $200 million.
Flatiron Health valuation
Flatiron Health’s most recent fundraising round was a $1,900 million acquisition on February 15, 2018. In January 2016, Flatiron Health was valued at $1,260.9 million. The most recent post-money valuation for Flatiron Health was in February 2018.
Flatiron Health Roche
The acquisition will bring together two organizations dedicated to improving the lives of cancer patients via the area of healthcare data and analytics, which is rapidly growing.
The firms will combine their expertise to promote real-world evidence in cancer research and development, setting new industry standards.
Flatiron Health will operate as a distinct legal organization in the future.
Roche (SIX: RO, ROG; OTCQX: RHHBY) and Flatiron Health, Inc. announced today that they had signed a formal agreement under which Roche would purchase all Flatiron Health’s shares, following an existing 12.6 percent ownership interest. The deal is scheduled to be completed in the first half of 2018.
Flatiron Health, based in New York City, is a market leader in oncology-specific electronic health record (EHR) software and the curation and generation of real-world evidence for cancer research. Flatiron Health, which has a broad network of community oncology clinics and university medical facilities throughout the United States, has developed a digital platform that is meant to learn from each patient’s experience.
We think that regulatory-grade real-world data is critical to expedite the development and access to innovative cancer medicines. This is a significant milestone in our personalized healthcare approach,” said Daniel O’Day, CEO of Roche Pharmaceuticals.
“This is a crucial milestone in our personalized healthcare strategy for Roche,” said Daniel O’Day, CEO of Roche Pharmaceuticals. “We think that regulatory-grade real-world data is a critical component to speed the development of, and access to, novel cancer medicines.
” Flatiron Health is best positioned to deliver the technology and data analytics infrastructure required not just for Roche, but cancer research and development initiatives throughout the industry, as a leading technology business in oncology. The preservation of Flatiron’s autonomy and capacity to continue offering services to all present and prospective partners is a critical premise.”
Flatiron Health has collaborated with industry leaders and regulators to create innovative techniques for incorporating real-world data into regulatory decision-making, such as developing and validating novel endpoints. Flatiron has built a portfolio of software solutions in collaboration with its network of community practices and academic medical facilities that uniquely positions the firm to enhance the use of real-world evidence at the point of treatment.
“Roche has been a fantastic partner to us over the last two years and shares our ambition for establishing a learning healthcare platform in oncology ultimately geared to enhance the lives of cancer patients,” said Nat Turner, Flatiron Health Co-Founder and CEO.
This significant achievement will enable us to boost our investments in our provider-facing technology and services platform, as well as our evidence-generation platform, all of which will remain open to the entire healthcare sector.”
Roche will pay Flatiron Health USD 1.9 billion on a fully diluted basis, subject to certain modifications, under the terms of the deal. The deal will be closed subject to normal closing conditions.
According to the parties, Flatiron Health’s present business strategy, the network of relationships, and general goals are expected to continue after the completion. The confidentiality of segregated patient-protected health information, as well as dedicated sales and marketing, provider-facing, and life science commercial operations, will be safeguarded.
Roche is a worldwide leader in medicines and diagnostics dedicated to improving people’s lives through science. Roche is the leader in personalized healthcare, a strategy that attempts to match the proper therapy to each patient in the most effective manner possible, thanks to the combined powers of pharmaceuticals and diagnostics under one roof.
Roche is the biggest biotech firm globally, offering unique medications in cancer, immunology, infectious diseases, ophthalmology, and central nervous system illnesses. Roche is also a pioneer in diabetes care and a global leader in in-vitro diagnostics and tissue-based cancer diagnostics.
Roche, founded in 1896, is still looking for improved methods to prevent, diagnose, and cure illnesses while also contributing to society. By collaborating with all essential parties, the firm also hopes to increase patient access to medical advancements.
The World Health Organization Model Lists of Essential Drugs contain thirty Roche-developed treatments, including life-saving antibiotics, antimalarials, and cancer medicines. The Dow Jones Sustainability Indices have named Roche the Group Leader in Sustainability in the Pharmaceuticals, Biotechnology, and Life Sciences Industry for the ninth year in a row (DJSI).
The Roche Group, based in Basel, Switzerland, operates in over 100 countries and employed over 94,000 people in 2017. Roche spent CHF 10.4 billion on research and development in 2017 and made CHF 53.3 billion in revenues. Genentech is a fully owned subsidiary of the Roche Group in the United States. Chugai Pharmaceutical, based in Japan, is owned by Roche.