Knownwell Raises $25M to Advance Obesity Medicine Services

Knownwell, a primary care and metabolic health company, has successfully raised $25 million in funding, with CVS Health Ventures leading the investment round. This announcement was made on March 10, 2024, during the HLTH conference in Las Vegas. The Boston-based company specializes in providing metabolic health services, primary care, nutrition counseling, and behavioral health care, including the prescription of GLP-1 medications when deemed appropriate.

The company operates virtual care services across the United States and offers in-person consultations at clinics located in the Atlanta, Boston, Chicago, and Dallas areas. Knownwell accepts various insurance plans, including commercial, Medicare, and Medicaid.

In addition to CVS Health Ventures, the funding round attracted contributions from the MassMutual Catalyst Fund, Intermountain Ventures, a16z Bio + Health, and Flare Capital Partners. To date, Knownwell has raised more than $50 million in total funding.

Addressing Unmet Healthcare Needs

According to CVS Health Ventures, Knownwell addresses a critical gap in the healthcare system. Alyssa Reisner, partner and executive director at CVS Health Ventures, stated, “The ability to deliver comprehensive and longitudinal care at scale is exactly what payers and health systems need to address one of the most pressing drivers of high costs and poor outcomes in healthcare today.” She emphasized that this investment represents a transformative approach to obesity treatment across the nation.

With the latest funding, Knownwell plans to enhance its services by expanding its clinic network and increasing its virtual care team. Brooke Boyarsky Pratt, co-founder and CEO of Knownwell, indicated that the company will also invest in artificial intelligence and clinical decision support tools. “We think that as prices come down and new, innovative programs are introduced, there will be opportunities to participate in different reimbursement models,” she explained.

The company aims to ensure that it has the necessary resources and personnel in place to capitalize on these potential opportunities in the future.

Challenges and Future Prospects

Knownwell’s funding arrives at a time of uncertainty in the obesity treatment sector, particularly as some insurers, including Blue Cross Blue Shield of Massachusetts and Harvard Pilgrim Health Care, begin to limit coverage for GLP-1 medications intended for weight loss. Boyarsky Pratt anticipates a challenging six months ahead but remains positive about the long-term outlook. “We actually think the next 18 months will be the year of expansion,” she declared.

She expressed optimism regarding pricing dynamics as pharmaceutical companies like Lilly and Novo Nordisk plan to introduce oral GLP-1 medications, which may enhance access for patients. By 2027, Boyarsky Pratt believes the landscape of obesity treatment will substantially change, with most patients gaining access to innovative obesity medicines through insurance.

Looking to the future, Knownwell is committed to advancing its advocacy efforts in obesity medicine and expanding its participation in clinical trials. While the field of virtual obesity medicine is becoming increasingly competitive, with players such as Ilant Health, Noom, and Found, Knownwell distinguishes itself through its primary care approach. This strategy not only aims to address obesity but also enhances overall metabolic health, positioning the company uniquely in the healthcare landscape.