Business News: CVS Health releases 100 million dollar investment trust for digital health.
If you’re in trouble, CVS really has it all: pharmacy services, beauty products, snacks, homewares, and now millions of dollars to funnel into early stage healthcare tech companies. The retail chain’s parent company, CVS Health, has launched a venture fund with an initial allocation of $ 100 million. CVS Health Ventures will provide financial support and guidance to the companies in its portfolio, which will primarily focus on startups developing digital solutions to make healthcare more accessible.
The fund’s portfolio companies will also be able to capitalize on CVS Health’s broad reach in the healthcare ecosystem, including its thousands of storefronts and over 100 million customers of CVS subsidiaries such as Aetna Insurance Company and Benefits Manager. Caremark prescription, the company said in a statement.
“We will build on this experience by providing capital to our startups and venture capital partners and helping them grow faster through business relationships with our business units,” said Josh Flum, executive vice president of business strategy and business development at CVS Health in a statement. “This is an exciting opportunity to accelerate innovation and effectively bring new solutions to the consumer health space.”
This isn’t the first time CVS Health has opened its checkbook to emerging innovative startups. The company has made more than 20 investments across the CVS and Aetna sides of its business that “have produced consistently strong returns and partnerships,” he said.
The company has also started making forays into creating its own technology-based healthcare solutions. In 2018, CVS Health initiated a program to develop a home dialysis device that would be easier to use than currently available devices. The program also included plans to eventually integrate that device into a CVS-provided home dialysis service.
The following year, slightly later than expected, CVS Health launched the first trial of its HemoCare hemodialysis system for home use. The device was developed with the help of Deka Research and Development and aims to provide an option to clean the blood of patients with kidney disease more frequently than typical in-clinic dialysis programs.