Life sciences research organization Verily announced on September 9 that it had raised $1 billion in an investment round led by Alphabet Inc. The company mentioned that it will use the capital to expand its product line and develop healthcare products for individuals, focused on precision health.
The company also announced a change in its top leadership. Company founder Andy Conrad will become Executive Chairman of the Verily Board and current president Stephen Gillett will be promoted to Chief Executive Officer, with both changes effective January 2023.
Verily’s Second Innings at Life Sciences
The company will use the newly-acquired capital to build up her data platforms, research, and technology that aims to make healthcare more personalized.
Verily was formed with a view to use data to change healthcare by using a people-first approach. It was initially a division of Google X, before becoming an independent organization in 2015.
The healthcare sector is seeing many changes and developments in recent months as competition heats up. Recently, Amazon announced that it will shut down part of its Health Care business and was even in the race to acquire Signify Health as it looks to expand its offerings in the sector.
Daniel Ives, an analyst at Wedbush Securities, told Bloomberg that the infusion of cash will help Verily establish itself as health-tech accelerates to new heights. In July, Amazon acquired the One Medical range of clinics, which is known for its membership-based model providing primary care. The deal was valued at approximately $3.9 billion and is part of Amazon’s goal to reinvent its healthcare service.
“It’s an arms race with Amazon, Apple, Microsoft and other tech stalwarts building out their strategic partnerships and muscles within the health-care vertical,” Ives added. “I view the billion dollars of capital as dry powder just to do more M&A and really go more into investment mode at a time where it’s a pivotal 12 to 18 months ahead.”
In a press release, Neil Lindsay, SVP of Amazon Health Services, stated, “Together with One Medical’s human-centered and technology-powered approach to health care, we believe we can and will help more people get better care, when and how they need it.”
In 2021, Verily had acquired research software developer SignalPath to expand its clinical trial system. It has also partnered with Lumea, L’Oreal, the Mayo Clinic, and Microsoft to increase its reach.
It is clear that the healthcare sector is booming and set for change. With Verily’s recent fundraising, the company will also look to foster strategic partnerships, global business development, and potential acquisitions.
Leadership Change at Verily
The company is also shuffling its top management positions as it gears towards a different future. Co-founder Andrew Conrad will no longer serve as CEO and instead take up the Executive Chairman’s role. Current Chief Operating Officer Stephen Gillett will take up the mantle as CEO. He was co-founder and CEO of Chronicle, an Alphabet cybersecurity company that is now part of Google Cloud.
Ina written statement, the company attested to its faith in Conrad and Gillett and revealed that the new roles are a result of thoughtful planning by the Board and Conrad. It is also recognition of their skills and expertise as Verily moves towards a new horizon.
In other news, the company’s CFO Deepak Ahuja will be moving out and joining drone delivery and logistics company Zipline at the end of September. The former Tesla CFO will continue to serve Verily as an advisor while the company searches for a replacement CFO.
Verily focusses on gleaning data from a large number of sources, including clinical, social, behavioral and the real world, to provide the best solutions in healthcare.
