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Virta Health: The virtual care platform reversing Type 2 diabetes and reducing medication for chronic metabolic conditions

Membership-based, non-insurance healthcare companies helping maintain a steady state of well being.

Preventive Healthcare

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    A deep dive into Virta Health's revenue, product, competition, and TAM expansion
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        Sacra estimated that Virta Health&rsquo;s revenue will reach USD 175 million in 2024, up 51% YoY from USD 116 million in 2023. Its revenue sources include diabetes reversal (54%), obesity treatment (27%), diabetes management (14%), and platform fees (5%).
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        Virta partners with around 550 B2B clients, achieving an average revenue per client of USD 318,000, significantly higher than competitors (Omada Health: USD 158,000) due to its focus on high-value diabetes reversal patients. The company operates on an outcome-based pricing model, with all fees at risk, tying payments to clinical success.
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        Last valued at USD 2 billion in 2021, Virta has raised USD 376.5 million since 2014 from investors like Tiger Global and Sequoia Capital.
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        Virta&rsquo;s product combines continuous remote monitoring with ketogenic diet support to reverse Type 2 diabetes, differentiating it from competitors who focus on disease management.
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        Growth is driven by increased enrollment in obesity programs (45% of new enrollments), positioning it as a cost-effective alternative to GLP-1 drugs. Future expansion may include other metabolic conditions like cardiovascular disease.
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        Virta Health faces competition from digital health platforms like Omada Health and Livongo, which focus on diabetes management rather than reversal, as well as traditional diabetes management providers like DarioHealth, Glooko, Perry Health, and Verily (Onduo) and new entrants offering GLP-1 medication programs.
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        Key risks include limited patient selection, competition from GLP-1 medications, and a shifting revenue mix from high-margin diabetes programs to lower-margin obesity treatments.
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EDGE Insights