Curation Health

In October 2020, Curation Health announced a Series A round financing. Curation Health is a clinical decision support platform designed to assist providers and health plans in navigating the transition from fee-for-service to value-based care. 

Sema4

In July 2020, Sema4 announced its Series C financing of $121 million. Sema4 is a patient-centered health intelligence company founded on the idea that more information, analysis, and engagement may improve the diagnosis, treatment, and prevention of disease.

LetsGetChecked

In May 2020, LetsGetChecked announced a Series C round financing of $70 million. LetsGetChecked is a health insights company that allows consumers direct access to a wide range of testing options and clinical services from home. By combining health data and diagnostic results, LetsGetChecked provides rich health insights to enable better healthcare decision-making, empowering people to take an active role in their health.

Ready Responders

In March 2020, Ready Responders announced a Series B round financing of $48 million. Ready Responders is a home-based care company that provides urgent care, care transitions, and community-based care management for high-cost/high-need patients leveraging a combination of field-based EMTs, paramedics and RNs supported by NPs and MDs via ipad/telehealth.

Vesta Healthcare

In January 2020, Vesta Healthcare announced a $30 million Series A financing co-led by Deerfield. The Company is a 24/7 technology and clinical services organization dedicated to supporting caregivers and connecting their insights to the rest of the care team. Vesta Healthcare identifies the need for additional support in the home and provides 24/7 telehealth support for caregivers and care recipients, with a focus on high-need, frail senior populations. The Vesta program partners with home care, health plans and providers to create value-based population health programs that emphasize clinical quality, improved health outcomes and personalized engagement.

Deerfield Management Brings Together Scientists, Entrepreneurs and Leading Companies to Form the New York-Based Healthcare Innovation Campus

$635 million in real estate and multi-disciplinary laboratory infrastructure will combine with multi-billion dollar investments in research to transform the battle against disease

NEW YORK, NY, September 26, 2019—In a major move, Deerfield Management Company, L.P.  is investing $635 million to create a transformative life sciences campus in New York City, designed to integrate the capabilities of innovators from academia, government, industry and the not-for-profit sectors to tackle unmet needs in healthcare. Deerfield additionally announced that it intends to commit more than $2 billion in research and seed funding by 2030 to develop much-needed new and innovative medicines and treatment solutions.  Deerfield expects this world-class infrastructure and funding to contribute to the prevention, cure or management of dozens of still deadly and debilitating diseases.  

As the foundation of this bold undertaking, Deerfield has acquired the 345 Park Avenue South property, which boasts more than 300,000 square feet. The site, designated a NYCLifeSci campus, will bring together scientists, entrepreneurs and leading organizations from around the world to work shoulder-to-shoulder to conceive of and develop new treatments and better ways to prevent and defeat disease. The campus will provide turnkey laboratories, and engineering and computing space, as well as other amenities and supportive services.  

“We are proud to be part of a community of people in New York who strive to save and extend lives. Creating an environment in which innovative thinking, ground-breaking advances in scientific discovery and where the development of new paradigms of patient care will occur every day is tremendously exciting,” said James Flynn, Managing Partner of Deerfield.  

“We are thrilled that our partnership with Deerfield will not only create quality jobs for New Yorkers but will also help provide a home for emerging companies to develop breakthrough scientific discoveries. New York City already has the best research institutions in the world. By investing in this Life Sciences campus to bring new lab space and programming for healthcare and early-stage biotech companies, we can strengthen the City’s position as a global leader in life sciences,” said NYCEDC President & CEO James Patchett.

The $540 million in financing for the acquisition and renovation of this world-class facility was led by Blackstone Real Estate, which has been a strong supporter of life sciences.  

Nadeem Meghji, Senior Managing Director, Head of Real Estate Americas at Blackstone said, “We are thrilled to finance this important project, which will advance life sciences research in New York City. With our investment in BioMed Realty, and elsewhere across our businesses, life sciences is among our highest priority investment sectors. We look forward to continuing to support the growing demand for research and innovation.”

The building construction and programming is being backed by the New York City Economic Development Corporation and Industrial Development Agency. It is expected to be in move-in ready condition for Deerfield and other innovators in healthcare by early 2021.

Due to obstacles, including a lack of capital and siloed approaches, promising new therapies and improvements in care management frequently fail to make it to patients. In addition to leveraging the value of public and private organizations in developing solutions, the Deerfield innovation campus will pursue all forms of technology, including digital, medical device and biotherapeutic approaches.  

“Many leaders have come together to build this incredible ecosystem, capable of accelerating the fight against disease. This campus should create the ideal backdrop to advance innovation,” said Alex Karnal, Partner and Portfolio Manager at Deerfield. “We are grateful to our partners, including the New York City Economic Development Corporation and Blackstone, as without them, this ambitious project might not have been possible.”

Having proven its ability to mobilize innovators in this space, MATTER, a healthcare focused incubator, in collaboration with Deerfield, will be supporting startups of all stages within the innovation campus.  MATTER has developed extensive specialized programs to train C-suite executives in the early stages of their career and to introduce young companies to established organizations for mentorship, collaboration and potential acquisition.  Combined with Deerfield’s operating support capabilities which extends to legal, finance, information technology, human resources, and market research, among other skillsets, companies formed within the campus will have unparalleled access to capabilities of the highest quality at low cost.

“Deerfield’s expertise and resources, combined with MATTER’s capabilities and experience, will create a healthcare and life sciences campus unlike any other,” said MATTER CEO Steven Collens. “We are thrilled to be a part of this endeavor to help entrepreneurs and innovators develop technologies and solutions that will improve the healthcare experience.”

Along with new educational programming being developed—and to complement the services provided by MATTER—Deerfield also announced that it will be growing its existing Deerfield LifeSci NYC Fellows and Break into the Boardroom programs. Deerfield additionally introduced a new initiative, Women in Science, focused on training women on how to commercialize their potentially lifesaving discoveries and create companies. The investment company has a rich history of developing and leading programs supporting diversity.

About Deerfield

Deerfield is an investment management firm committed to advancing healthcare through investment, information and philanthropy.

For more information, please visit www.deerfield.com

Contacts

Deerfield Management Company
Karen Heidelberger, 212-551-1600
[email protected]

Deerfield Management Advanced Healthcare Initiatives Globally Through Academic Collaborations, Publications, and Philanthropy

In addition to advancing healthcare through investment, Deerfield’s efforts through information and philanthropy have an unprecedented year

New York, NY – February 6, 2019 – Deerfield Management advanced healthcare initiatives globally in 2018 through five new academic collaborations, eight scientific publications, and 22 philanthropic partnerships. Deerfield’s intent is to participate in large scale efforts to enrich patients’ lives with early stage discovery support, novel peer-reviewed insights, and investments that can help tackle the issues affecting healthcare today.

Deerfield Academic Collaborations

In 2016 Deerfield began collaborating with academic institutions to create partnerships that provide funding and support to early stage therapeutics. Since then, Deerfield has developed nine companies across eight states developing expeditious pathways from concept to commercialization for novel therapeutic discoveries and one incubator focused on innovative cardiovascular devices.

Anticipating commitments of over $500 million in early stage research by 2021, Deerfield is uniquely positioned to support all stages of development from early stage to commercial opportunity. This capability has the potential to eliminate the hurdles researchers would face in finding new capital during this rigorous trajectory to the marketplace.

Deerfield Institute

Deerfield Institute’s research capabilities and survey analyses sparked the need to begin publishing its scientific findings for the greater good. Since 2015, the Deerfield Institute has published 50 articles,editorials, and abstracts. Whether it is identifying predictors of laparoscopic hysterectomy among leiomyoma patients or exposing the variability in the therapeutic management of advanced ovarian cancer patients, the publications are weighted in scientifically driven research and analysis and leverage the knowledge interpreted by Deerfield’s team of healthcare focused researchers.

“We have a sense of responsibility to share our insights and equip our ecosystem with the high quality, novel information required to accelerate and improve healthcare,” stated Alexis Cazé, partner and chief information officer at Deerfield. “Through collaboration, we ultimately increase the greater potential of improvement in the healthcare system.”

Deerfield Foundation

Since inception the Foundation has committed or invested approximately $40 million to 39 philanthropic partners that impact healthcare for children and families from underserved communities. In 2018, the Foundation reached 11 countries with 77% of its annual funding directed towards services,goods, and outreach, 12% to infrastructure and 11% to R&D.

The Foundation has recently been exploring new models and is increasingly interested in designing granting programs with measurable impact.Whether this means pay-for-performance or key performance indicators, creating business models that lead to a self-funding business can result in self-sustaining organizations that can thrive in any philanthropic environment. “Deerfield realized the importance of exploring pay-for-performance models by pioneering our Results Based Financing for Community Health pilot,” stated Lisa McCandless from Living Goods. “Since Deerfield’s commitment, Living Goods has propelled to the forefront of this initiative globally and continues to share its learnings and findings with the broader community.”A list of our academic collaborations from 2016 to 2018 are below:

  1. Center for Protein Degradation with Dana-Farber Cancer Institute
  2. Pinnacle Hill with the University of North Carolina at Chapel Hill
  3. Poseidon Innovation with UC San Diego
  4. Lakeside Discovery with Northwestern University
  5. Ancora Innovation with Vanderbilt University
  6. Academic collaboration with Broad Institute of MIT and Harvard
  7. Bluefield Innovations with the Johns Hopkins University
  8. Bridge Medicines with Memorial Sloan Kettering Cancer Center, the Rockefeller University, and Weill Cornell Medicine
  9. Vescor with the University of Texas MD Anderson Cancer Center

A sample of the peer reviewed publications, reviews and abstracts published in 2018 are listed below:

  1. A Hybrid Approach for Prediction of Event Times in Double-Blind Clinical Trials. Ming Zhu, Yunnan Xu, Zheng Su. Joint Statistical Meeting 2018
  2. Predictors of laparoscopic hysterectomy for leiomyoma surgical removal in the United States. Kate Busko, Mark Stuntz. Value in Health / ISPOR
  3. Analysis of Success Rates for the Center for Medicare and Medicaid’s New Technology Add-On Payment Program. Alexandra Truglio, Christine Livoti. Value in Health / ISPOR
  4. Trends in isolated mitral valve surgery: the changing risk profile of patients and outcomes. Andrew Elbardissi, Mark Stuntz. European Society of Cardiovasculaire and Endovasculaire Surgery International Congress 2018
  5. The importance of emerging transcatheter mitral valve technologies in cost-effectiveness and post-procedure outcomes. Andrew Elbardissi, Mark Stuntz. European Society of Cardiovasculaire and Endovasculaire Surgery International Congress 2018
  6. Impact of adverse media reporting on public perceptions of the doctor-patient relationship in China: an analysis with propensity-score matching. Jing Sun, Shiyang Liu, Qiannan Liu, Zijuan Wang, JunWang, Cecile Jia Hu, Mark Stuntz, Jing Ma, Yuanli Liu. BMJ Open, August 2018
  7. Potential role of emerging percutaneous mitral technologies in patients undergoing TAVR. Andrew ElBardissi, Mark Stuntz. JACC, September 2018
  8. Futility stopping in non-inferiority trials. ZhengSu, Mark Stuntz. Contemporary Clinical Trials Communications, December 2018.


In 2018, the Deerfield Foundation invested in the following projects with its philanthropic partnerships:

  1. Children’s Health Fund. Deerfield Child and Family Health Clinic and New York Program,providing high quality, comprehensive and compassionate patient-centered healthcare for underserved children and families.
  2. Coalition for the Homeless. Child Advocate to assist homeless families in New York City.
  3. Covenant House. Wellness center support: medications/supplies, mental health services,and staff training on mental health and best practices.
  4. Jacaranda Health. Support launch of a “nurse mentor training center” to build a pipeline of public sector maternity nurse champions and improve obstetric care in Kenya.
  5. Last Mile Health. Continue scale-up of Liberia’s National Community Health Assistant Program, cost-effectiveness study in Grand Bassa County and launch of the Community Health Academy’s first online, free, digital training course for community health system leaders.
  6. Little Sisters of the Assumption Family Health Service. Environmental Health Services Program and Maternity Outreach Program.
  7. Living Goods. Digital optimization of business practices – enabling transformational scale for community health.
  8. Lwala Community Alliance. Every child: strengthening health systems to reduce maternal and child mortality.
  9. Many Hopes. Provide physical and mental healthcare as well as a nutritious diet for orphans and abandoned children in its rescue homes and school.
  10. Medic Mobile. Scaling digital health tools for improved community-level care coordination in Nepal.
  11. Mifanmama. Eye Care Outreach Program.
  12. Muso. Proactive care delivery: rigorous implementation of research to save lives and support Mali’s National Community Health Worker scale-up.
  13. Northside Center for Child Development. Expand Northside’s capability to treat mental health issues in children age five and under.
  14. Partners In Health (Zanmi Lasante). Operating costs for Zanmi Beni Children’s home.
  15. Possible. Designing and scaling accessible, integrated healthcare solutions for underserved communities in Nepal.
  16. Réseau Des Entrepreneurs Solidaires. Deerfield RES Madagascar: support approximately 31 medical centers and dispensaries run in Madagascar.
  17. St.Boniface Haiti Foundation. Materials and staffing for the pediatric services ward of the St. Boniface Hospital in Fond des Blancs, Haiti.
  18. Sustainable Health Enterprises. Initial funding of SHE28’s technological innovations to produce go! pads for girls and women.
  19. The Family Center. Training and certification of six clinical staff members in Parent Child Interaction Therapy.
  20. The Mott Haven Academy. PNP services and medical clinic support, and contributions to establish and develop adolescent health programming in its middle school.
  21. The Water Trust. Scaling-up the Self-Help Group Program and publishing findings to provide children in East Africa safe water and healthy homes.
  22. Village Health Works. Equipping the pediatric and maternity unit of the Kigutu Hospital and Women’s Health Pavilion.

About Deerfield

Deerfield is an investment management firm committed to improving healthcare through investment, information and philanthropy.

For more information, please visit www.deerfield.com

Contacts

Deerfield Management Company
Karen Heidelberger,212-551-1600
[email protected]

New Story Reignites Old Debate On Conflict Of Interest

Drug and device development requires extensive expertise, is costly, and time consuming. In particular, the need for deep expertise in many disciplines means there is a market value for those skill sets, and sometimes those exist in the private sector, but many times, in academia. The relationship between academia and industry is both praised and criticized, but unavoidable as increasingly complex diseases are tackled by both parties. As a result, many academics also have some kind of corporate relationship, be it as a trial investigator, a consulting or advisory role, or a speaker’s bureau slot, to name a few examples. As these relationships merit payment, critics feel industry payments erode away at academics’ ability to offer unbiased opinions and expertise, precipitating the need for some kind of disclosure.

Putting aside the details of the most recent example of a debate over conflict of interest (COI) out of Memorial Sloan Kettering Cancer Center (MSKCC), much of which has already been detailed elsewhere[1], the response suggests disclosure is not only preferred but necessary, though the who, how, and why have yet to be hammered out. Medical journals and some specialty societies may require the data, but do not have uniform criteria for the reporting of industry ties (whether by physicians or sponsors) nor a readily identifiable platform for prospective patients or industry observers to view what relationships physicians may have.

The most comprehensive source of information is the Open Payments database maintained by the Centers for Medicare and Medicaid (CMS).[2] Applicable manufacturers and group purchasing organizations are required to annually submit relevant payment information to physicians and teaching hospitals to CMS, and CMS subsequently allows physicians and those hospitals to review the reported payments for accuracy. Payments for research, meals, travel, gifts, and speaking fees are all required to be reported.

While the most comprehensive, there are some notable exemptions to the Open Payment database, which some argue are loopholes asking to be closed. Companies that do not yet have a marketed product approved by the Food and Drug Administration do not have to report payments, meaning many small biotech companies working on their very first product are not reporting to the database.  Additionally, continuing medical education (CME) payments are also exempt, though some argue CME is simply another avenue for industry to market their new launches and pipelines.

Referring to the recent MSKCC news, medical ethicist Dr. Arthur Caplan publicly commented “We have yet to figure out what COI means or how to manage it in a health care world where industry ties are everywhere”[3] which is likely the best succinct encapsulation of the status quo. It is unknown what payment threshold might influence physician decision making (whether perceived or actual), but there is also some intangible value to physicians who serve as investigators on cutting edge clinical trials and serve on advisory boards alongside the top minds in their fields, who in turn can provide better care for their patients. It would be wrong to suggest that all interactions between industry and physicians are either unethical or inappropriate, but we can, and should, do better at reporting them.

[1]   https://www.nytimes.com/2018/10/12/health/memorial-sloan-kettering-cancer-disclosure.html

[2] https://openpaymentsdata.cms.gov/

[3] https://twitter.com/ArthurCaplan/status/1038849711174762499

Strata Oncology

In the 2nd quarter of 2018, Deerfield participated in a $26 million Series B financing round for Strata Oncology. The company provides an end-to-end clinical trial platform for precision oncology that expands patient access to precision oncology clinical trials and accelerates clinical trial enrollment.

The company expects to deploy this capital to expand access to precision trials in new hospital systems, fund the FDA approval process for in vitro diagnostics and further develop its technology and analytical capabilities.

Analysis of success rates for the Center for Medicare and Medicaid’s new technology add-on payment program

Objectives

To quantify the approval, denial, and withdrawal rates and identify any predictors of success or failure for all new technology add-on payment (NTAP) applications from FY 2003 to FY 2018 in the United States.

Methods

The Center for Medicare and Medicaid (CMS) releases inpatient payment methodology rulemaking annually in the Federal Register, including details of NTAP submissions. The proposed and final rulemaking documents were analyzed to quantify the approval, denial, and withdrawal rates of all applications and determine primary reasons for denial or withdrawal from FY 2003 to FY 2018. Raw data were coded to further examine any predictors of application success such as product type, therapeutic category, manufacturer type, reapplication status, and proposed rule determination.

Results

There were 95 NTAP applications submitted over the last 15 fiscal years. Approximately 30%, 25%, and 45% of applications were approved, withdrawn prior to final rule, or denied, respectively. Inability to meet the “newness criteria” developed by CMS was the primary reason for denied and withdrawn applications. Product type, therapeutic category, and reapplication status have minor to significant impact on the approval rate of an application. However, manufacturer type and proposed rule determination have little to no impact on application outcome.

Conclusions

While there are a few factors that may positively influence the outcome of a NTAP application, the approval rates for the program are low overall. Without additional reimbursement from the NTAP program, inpatient hospitals may be deterred from adopting innovative therapies because of financial burdens. CMS and manufacturers should strive to find a better consensus for a framework that adequately incentivizes the utilization of new technologies for Medicare beneficiaries.