Mango Health Raises $5.25 For Medication Adherence App

4-2-2013 7-55-03 PM

In a March 2013 report on medication adherence trends in the US, the CDC concluded that 50 percent of medications are not taken as prescribed after the first six-months of use, and that 30 percent of prescribed medications are never even filled. Currently, the CDC attributes 125,000 annual deaths with a failure to comply with prescription instructions. Combine this with the CDC’s prediction that more than 150 million American’s will require at least one daily medication to control a chronic condition by 2020, and the need for improved medication adherence innovations becomes clear.

Mango Health, a startup founded in 2012, is working to address this very problem. The company just closed a $5.25 million Series A round led by Kleiner Perkins Caufield & Byers. As part of the deal, KPCB partner Beth Seidenberg, MD, will join the Mango Health board. Mango Health was a 2012 Rock Health graduate, and closed a seed funding round with participation from Baseline Ventures, Bullpen Capital, First Round Capital, Floodgate Fund and angel investors. The new funding will be used to expand the Mango Health platform, and build up a stronger marketing staff.

“Spending to treat chronic disease now accounts for 75% of U.S. healthcare expense, yet most disease management programs fail due to an inability to engage patient populations or to reliably communicate with the patient populations enrolled in the programs.” – Jason Oberfest, Co-Founder

Mango Health markets an app that combines medication reminders and an adherence tracker with a rewards platform that pays users in gift cards for keeping up with their meds. It’s a simple concept, but one they claim is making a difference in adherence rates among their users. In a recent self-published study, Mango Health claimed that after six-months, 60 percent of its users were still actively using the app, and that 90 percent were still reportedly adhering to their medications, though this bit of information is not based on app data, but self-reported data.

For Mango Health, keeping users engaged is key to its monetization strategy. Rather than marketing directly to consumers, the company markets to payers, health systems, and employers that want to reduce overall health costs within a certain population. The customers pay Mango Health based entirely on the number of active users that are maintaining medication adherence within the population.

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