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  • October 2023
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Vida Health: Transforming Chronic Disease Treatment

By: William Sahlman and Nicole Tempest Keller
  • Format:Print
  • | Language:English
  • | Pages:24
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Abstract

San Francisco based Vida Health, founded by Stephanie Tilenius, former vice president of Commerce and Payments at Google, was a B2B digital health startup focused on the treatment of cardiometabolic conditions, such as diabetes and obesity. Its innovative digital platform integrated technology with human care, and its treatment approach focused on physical health as well as mental health, creating a unique, holistic solution. As a Series D venture backed company with $188 million in funding, Vida was eager to scale the business faster. In 2023 Tilenius was grappling with whether to start prescribing weight loss drugs as part of Vida’s obesity management program. Consumer demand for newly FDA-approved semaglutide drugs (GLP-1s), like Ozempic, was surging. However, GLP-1s were already facing scrutiny for risks; they had known negative side effects; and there was no clear scientific proof that people could be taken off them and maintain weight loss. It was also not clear how the market would respond if Vida—which had differentiated itself through its behavioral management approach to chronic disease—entered the weight loss prescription drug business. Would Vida be characterized as a “pill-mill”? If Vida did decide to offer prescription weight loss drugs as part of its platform, it would also have to decide if it should roll out a B2C platform to reach consumers who were not covered through an employer plan or whose plan did not cover weight loss medications. Tilenius had significant experience with B2C brands and saw the potential. However, building a B2C brand would likely be a costly endeavor.

Keywords

Corporate Strategy; Growth and Development Strategy; Demand and Consumers; Health Care and Treatment; Product Marketing; Risk and Uncertainty; Technological Innovation; Health Industry; Technology Industry; United States; California; San Francisco

Citation

Sahlman, William, and Nicole Tempest Keller. "Vida Health: Transforming Chronic Disease Treatment." Harvard Business School Case 824-001, October 2023.
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About The Author

William A. Sahlman

Entrepreneurial Management
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