Talkspace hits an earning milestone, and more

You’re reading the web edition of STAT’s Health Tech newsletter, our guide to how technology is transforming the life sciences. Sign up to get it delivered in your inbox every Tuesday and Thursday.

Virtual mental health company Talkspace this morning reported fourth quarter and full-year 2024 earnings. It continues to be a positive business story in the rocky world of telehealth:

The company reported $1.1 million in net income for 2024, the first time the company has turned a profit on a yearly basis. Talkspace has for several quarters reported positive earnings on an adjusted basis. It posted a net loss of $19 million in 2023.
Revenue grew 25% in 2024 to $187.6 million, driven by its payer business. The company’s pivot from selling directly to consumers who pay out of pocket to getting in-network with insurers continues to pay off.
Talkspace still has $76 million in cash on the balance sheet and no debt. It’s in good shape to do acquisitions, should the opportunity present.
Talkspace released 2025 guidance including continued double digit revenue growth and improved adjusted earnings.

As with any giant company, Apple tries a lot of things, many of which never reach consumers. In the case of its health research — sometimes it tries those things in public before setting them aside. Here’s an example of an Apple research project that has grown legs of its own.

In a new story, I report that four years after Apple announced an Asthma Digital Study to explore how its products could be used to support people with asthma, an application developed from that research, called Asthma Tool, is now available to the public. The free software allows users to track their symptoms and triggers and to use wearable devices to monitor vitals, like resting heart rate, for signs that asthma may be acting up.

The original research was done with insurer Anthem (now Elevance Health) and the University of California Irvine School of Medicine. As I reported in 2023, early data from the study suggested an intervention very similar to Asthma Tool helped keep people on Medicaid out of the emergency department. (A full peer reviewed publication has not been released.)

Apple and Elevance so far haven’t moved to launch any asthma product derived from the research, but CareEvolution, which developed software for the study, decided to put one out. Bronwyn Harris, an executive who helped launch the study at Apple, now works at CareEvolution.

Still, without the support of a giant insurer and the world’s most powerful consumer electronics company, driving adoption for the tool will be a big challenge. The company hopes grassroots efforts may lead people to Asthma Tool, and it is on the hunt for partners who might be interested in using it.

Hims scoops up Trybe, plans to roll out home testing

Katie Palmer writes: Hims & Hers continued its acquisition spree on Wednesday, announcing its plans to roll out at-home testing to customers over the next year with a facility called Trybe Labs. Hims most recently acquired an outsourcing facility to ramp up its pharmacy compounding capabilities in California, saying it would enable continued access to compounded GLP-1s along with expansion into new compounded products — which may include hormone therapies. The testing announcement identified low testosterone, perimenopause, and menopause as categories for expansion.

Medical device lobby push back on Trump FDA cuts

Following sweeping cuts of Food and Drug Administration staff, AdvaMed is pushing back on behalf of the medical device industry. STAT’s Lizzy Lawrence reports that on Wednesday, CEO Scott Whitaker sent a letter to federal health department administrators, urging them to consider the terminations’ potential impacts on patient health and medical device innovation. The cuts targeted in particular staff at FDA’s devices center, including many reviewing artificial intelligence products. On a call with reporters, Whitaker argued that these cuts are misplaced:

“If your intent was to cut some of the fat out of an agency, the result of your action is not that,” Whitaker said. “It’s to cut the newest employees with the most specialized skills relative to emerging technologies, particularly in the digital and AI space.”

Google’s scientist co-pilot and some notable deals

Google this week announced co-scientist, a generative AI tool that helps researchers develop hypotheses and strategies.
AI drug design company Isomorphic Labs announced a deal to expand its partnership with Novartis to up to three additional research projects under the same financial terms of the initial deal announced last year.
AI biotech Genesis signed deal with Incyte for $30 million up front plus a potential of hundreds of millions in development funding, milestone payments, and royalties.
Cleveland Clinic announced it is rolling out clinical documentation and coding products from Ambience Healthcare.

What we’re reading

HP to acquire parts of Humane, AI pin startup from ex-Apple managers, for $116 million, Bloomberg
Recursion CEO: Publicly funded research built the biopharma industry. Now it needs our help, STAT
Scientists describe rare syndrome following Covid vaccinations, New York Times

link