Everlywell expands at-home lab testing service and banks on post-pandemic growth

The deal

According to Bloomberg, at-home health testing startup Everlywell has acquired PWNHealth and Home Access Health. To reflect the evolution into a multi-faceted health business, the parent company has been rebranded as Every Health.

Previously, Everlywell maintained a partnership with PWNHealth, which operates a diagnostic testing clinic network. Terms of the deal were not disclosed, but Bloomberg reported that the Blackrock-backed startup is valued at $2.9 billion after the acquisition.

The Texas-based company was founded in 2015 and has grown to offer more than 35 at-home lab testing kits for food sensitivity, fertility, STDs, thyroid function, metabolism, vitamin D levels, and inflammation. During the COVID-19 pandemic, the startup experienced strong growth, with sales increasing 300% last year.

Everlywell is counting on increasing consumer demand for affordable testing to continue long after pandemic periods. Julia Cheek, CEO and founder of Everlywell and Everly Health, said in a statement, that "the pandemic significantly accelerated the growth of consumer-friendly lab testing within the $85 billion testing market, resulting in a watershed moment for all aspects of diagnostics. People now expect affordable, high-quality, and easy diagnostic testing more than ever before". 

The bigger picture

Everlywell and other players like Finland-based Nightingale challenge the established blood diagnostics value chain. Currently, blood tests have to be prescribed by physicians, which are billed per test. This usually results in high costs when a comprehensive picture is needed. With a direct-to-consumer approach, along with a broad spectrum analysis, Everlywell and Nightingale not only connect directly with consumers, but also provide them with a bird’s eye view of their health.