Zest Health Announces $13M in Funding to Curb Unnecessary Pharmaceutical Spend through High-Touch Care
Rhea-AI Summary
Zest Health has secured $13 million in seed funding to address unnecessary pharmaceutical spending in dermatology care. The company focuses on treating inflammatory skin diseases through a value-based virtual care platform. With approximately 40 million Americans affected by eczema and psoriasis facing long wait times, Zest aims to reduce reliance on expensive biologics, which currently drive over $40B in annual US spend and are growing at 15% annually.
The company's virtual platform delivers personalized care, combining prescription medications, over-the-counter solutions, and lifestyle interventions. Key performance metrics include: 80% of patients showing disease improvement based on BSA and DLQI measures, 90% patient preference rate compared to prior care, and an NPS of 83. The funding, provided by Roivant Health, will support scaling partnerships with health plans and employers.
Positive
- Secured $13M seed funding from Roivant Health
- Platform achieves 80% patient improvement rate
- 90% patient preference rate vs traditional care
- High NPS score of 83
- Reduces thousands in pharmacy spend per enrollee annually
Negative
- None.
Insights
This
Market Positioning & Cost Management: Zest's platform directly addresses a critical healthcare inefficiency - the overutilization of expensive biologics in dermatology. With over 40 million Americans affected by eczema and psoriasis, the potential for cost savings is substantial. The company's approach of combining virtual care with data-driven prescription optimization could save thousands per patient annually.
Clinical Validation & Patient Satisfaction: The platform's impressive metrics -
Strategic Fit & Growth Potential: For Roivant, this investment aligns perfectly with their expertise in inflammatory diseases while expanding their footprint in digital health and value-based care. The focus on partnerships with health plans and employers provides a clear path to scalability and revenue growth. The timing is optimal as healthcare providers increasingly seek solutions to manage pharmaceutical costs without compromising care quality.
Zest is initially focused on treating the millions of Americans with inflammatory skin diseases who are currently overprescribed expensive biologics
NEW YORK, Feb. 03, 2025 (GLOBE NEWSWIRE) -- Zest Health, the first value-based virtual care company focused on treating patients with inflammatory skin diseases, today announced
The roughly 40 million Americans with eczema and psoriasis face average wait times of over a month and rushed visits as dermatologists increasingly turn to cash-pay models that prioritize aesthetics. To minimize and expedite office visits, prescribers rely on systemic medications to quickly achieve clear skin. Overreliance on these medications has led to rapid growth in associated spend. Biologics for these conditions are being used earlier and more chronically, growing at
Zest provides patients with more personalized, responsive care. Zest’s virtual, high-touch approach is bolstered by patient data to identify optimal prescription regimens, over-the-counter medications, lifestyle changes, and preventative interventions for more convenient, durable relief.
Zest’s approach reduces pharmacy spend by thousands of dollars per enrollee annually without sacrificing outcomes:
- Over
80% of patients see disease improvement as measured by Body Surface Area (BSA) and the Dermatology Life Quality Index (DLQI) - Over
90% of patients prefer Zest to their prior dermatology experiences - Zest has a Net Promoter Score (NPS) of 83
“As a psoriasis patient myself, I know that the status quo fails to deliver ongoing support and lasting relief,” said Zest Health CEO Olivia Deitcher. “At Zest, we have flipped traditional dermatology care on its head by providing radical access and personalized care so flaring patients get expert help during and in between flares, without overreliance on biologics.”
Roivant Health incubated and made this investment in Zest, bringing their historic expertise in inflammatory disease innovation and transformative health technologies. The funds will be used to scale Zest’s existing partnerships with health plans and employers seeking to address this growing cost pool.
“Many problems in healthcare involve challenging tradeoffs between quality and cost. This is an exception where higher quality simultaneously reduces unnecessary expense,” said Alex Gasner, EVP of Roivant Health. “We are excited at Roivant to support Zest as they use technology to bring dermatology into the 21st century.”
About Zest Health
Zest delivers more effective, accessible, and compassionate solutions for patients with chronic skin conditions like psoriasis and eczema. Through its virtual platform, Zest achieves better outcomes at a lower cost for the thousands of patients who have signed up for Zest’s services to date. Zest currently partners with health plans and employers in value-based arrangements to improve the lives of members. To learn more, please visit www.zesthealth.com.
Contact Information
press@zesthealth.com
FAQ
How much funding did Zest Health raise in its seed round?
What are the key performance metrics for Zest Health's dermatology platform?
How much does Zest Health reduce pharmaceutical spending per patient?
What is the current market size for biologics in dermatology that Zest Health is targeting?
How many Americans with skin conditions could benefit from Zest Health's platform?
