BioPharma

Infectious disease hunter raises $30M to support epidemic risk management

A microbiological research business has raised $30 million as part of an effort to apply data analytics to the tricky job of insuring companies against infectious disease outbreaks.

Big data analytics has spurred a lot of interest in healthcare, especially from health systems and insurance companies interested in using predictive analytics to more easily identify patients who could benefit from more frequent contact with healthcare professionals to avoid costly readmissions. But microbiological research business Metabiota is applying big data analytics to help insurers mitigate risk in the face of deadly pandemics like the Ebola virus.

The company, which specializes in investigating and mitigating infectious disease threats, has raised $30 million to support its efforts to further develop and deliver epidemic risk management, according to a company statement. RSTP led the funding round. Capricorn Health & Special Opportunities, WP Global Partners, Industry Ventures and Data Collective also took part.

It works with local governments, health agencies, private sector firms and non-profit organizations around the world.

Dr. Nathan Wolfe, founder and CEO of Metabiota, said in the statement that infectious disease epidemics are no longer “one-off events” and that justified its approach.

“We are capturing unique data on infectious diseases and by partnering with top organizations, like ARC and Munich Re, are creating financial mechanisms to facilitate the movement of critical resources within affected countries to manage the spread of disease, while minimizing the macroeconomic impact.”

The Wall Street Journal, which profiled the business, described its products this way:

The products would work similarly to drought insurance, which pay out in stages as a situation becomes more serious.

In one scenario, a country could buy insurance that would pay out in stages as a disease spreads to certain numbers of people or if fatalities start to rise. The funds would become available quickly so that the country could use them to deploy medical aid and slow the spread of a virus.

The article noted that Metabiota’s approach is not without its own set of risks. It’s uncertain how much demand there will be for these kind of products. It may also be tricky for companies to draw a straight line between a disease outbreak and lost revenue.

Photo: European Commission DG ECHO

 

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