Calibrate Pivots to Enterprise Model
Obesity management company Calibrate announced it has completed its transition from a direct-to-consumer business to an enterprise-focused solution. The company, which serves employers and health plans, reports that it has more than doubled its client roster during this pivot.
- The pivot to an enterprise model was accompanied by a leadership change, with Rob MacNaughton taking over as CEO in early 2024 to spearhead the company's enterprise-first growth phase. Founder Isabelle Kenyon stepped down from the CEO role in the fall of 2023. - This strategic shift was supported by a legal restructuring and a new financial commitment from Madryn Asset Management and other existing investors in October 2023, which was intended to strengthen the company's financial position and pave a path to profitability. - The transition followed challenges in the direct-to-consumer market, including member complaints, difficulties related to shortages of GLP-1 medications, and payers' reluctance to cover the costly drugs. - As part of the restructuring and increased focus on the enterprise segment, Calibrate conducted multiple rounds of layoffs, including a reduction of approximately 250 employees in August 2022 and April 2023. - A key component of Calibrate's new enterprise strategy is a strategic collaboration with OptumRx, the pharmacy benefit manager for UnitedHealth Group, to offer its weight management program to employers. - Through its partnership with OptumRx, Calibrate has already secured major clients, including FedEx, signaling early traction in its new business model. - Since its founding in 2020, Calibrate has raised over $160 million in funding, including a $100 million Series B round in August 2021 co-led by Founders Fund and Tiger Global. - The company's program combines GLP-1 medications with personalized coaching on lifestyle factors, and it has published results showing an average of 16% weight loss at 12 months and 18% at two years for its members.
