Everlywell has distributed more than 500,000 Covid-19 test kits since it got an emergency use authorization in May. Photo credit: Everlywell
As states struggled with long turnaround times for Covid-19 tests, at-home testing companies saw a surge in demand. One of these companies, Everlywell, expects to see its sales to quadruple in 2020.
The Austin-based startup recently raised $175 million in new funding. Since it got an emergency use authorization from the Food and Drug Administration for its at-home collection kit in May, the company has distributed more than 500,000 Covid-19 tests, Everlywell’s communications director Christina Song wrote in an email. While states have significantly ramped up testing from the beginning of the pandemic, many once again faced long wait times leading up to the holidays, as states saw a surge in infections — and a subsequent demand for tests.
Everlywell Founder and CEO Julia Cheek said in a news release that the pandemic has shed a light on the challenges of lab testing. Other startups have pointed to Covid-19 as a demonstration that the current system isn’t working, such as BioIQ, which is building a network of laboratories. Truepill, the startup behind many direct-to-consumer pharmacy brands, is also looking to stitch together to its own network for at-home testing.
Everlywell’s other tests, which include at-home hemoglobin A1c tests, food sensitivity tests, STD tests, and a litany of other tests, have also seen a boost in sales. In part, this is because the company has added more retail partnerships with retailers like Target, CVS and Kroger.
The five-year-old company said it has struck more than 100 partnerships with businesses, universities, clinics and government offices in the last year.
With the new investment, Everlywell has raised more than $250 million to date. It plans to use the funds to scale up its testing and infrastructure. The startup also hinted at plans to use its at-home tests in a clinical research context and expand virtual care — it currently connects patients to a free telehealth consultation if their Covid-19 test yields a positive result, for example.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
“We believe lab testing will be rapid, simple, and coupled with virtual care in the near future,” Cheek stated.
Its most recent round of funding included new investments from BlackRock, The Chernin Group, Foresite Capital, Greenspring Associates, Lux Capital, Morningside Ventures, and Portfolia. Previous investors Goodwater Capital, Highland Capital Partners, and Next Coast Ventures also contributed.
