Telehealth startup Remedy Meds has expanded its position in the US market at a stroke with a deal to buy Thirty Madison in an all-stock deal valued at around $500 million.
Short Hills, New Jersey-based Remedy Meds is just over a year old, having started operations last year, but has grown swiftly by tapping into the boom in consumer demand for self-paid GLP-1 agonist medicines for weight loss, offering compounded versions of both Novo Nordisk’s semaglutide and Eli Lilly’s tirzepatide. Its offering includes video calls with clinicians and a simple, all-inclusive monthly fee for medicines.
By acquiring New York City’s Thirty Madison – which has been in operation since 2017 – Remedy Meds will expand into several new telehealth areas, including men’s health/hair loss with its Keeps business, migraines (Cove), gastrointestinal disorders (Evens), allergies (Picnic), and women’s health (Nurx).
“By bringing together Thirty Madison’s trusted brands with Remedy Med’s acquisition engine, retention system, and pharmacy infrastructure, we will broaden access, shorten time-to-treatment, and maintain the financial discipline that has defined our growth,” commented Haris Memon, Remedy’s founder and chief executive.
In a post on LinkedIn, Thirty Madison co-founder and CEO Demetri Kargas said that the combined company will serve nearly a million patients across the Remedy, Keeps and Remedy businesses alone. The units will be backed up by nationwide clinician coverage, insurance coverage, and an integrated pharmacy fulfilment network with same-day video visits, rapid prescription review, tailored treatment plans, and at-home delivery.
“This year, Remedy will generate north of $450m in revenue with significant profitability, and Thirty Madison is profitable at over $225m in projected revenue, making us one of the leading digital health platforms in the country at close,” he wrote. “We’ve proven that accessible, high-quality, specialised care can be delivered at scale.”
However, “while digital health has come a long way, we’re still just scratching the surface of how care can be transformed,” he added, noting there is still a long way to go before the Thirty Madison vision laid out with fellow founder Steven Gutentag can be realised.
“I couldn’t be more excited to see the mission not just continue, but grow even stronger as part of Remedy.”
Memon told Axios that the combined company is considering going after an initial public offering (IPO) within 12 to 18 months of the acquisition closing, which is expected to occur in the fourth quarter of this year, subject to the usual regulatory reviews.
Photo by krakenimages on Unsplash
