Ro, the parent company of Roman, a digital elective care and telemedicine provider last valued at $5 billion, acquired femtech start-up Modern Fertility in one of the biggest exits for a women’s health company focused on reproductive care.

WHO: Modern Fertility was founded in 2017 to help women own their fertility and their future. The brand is about reimagining fertility, making it proactive, accessible, supportive, personalized, clinically sound, affordable, all in service of giving you the ability to live the life you want. The flagship product is a $159 finger prick test that can estimate how many eggs a woman may have left to help determine which fertility method might be best. The company also sells an at-home test, available at Walmart, to help track ovulation, as well as standard pregnancy tests and prenatal vitamins.

Ro was founded in 2017 with a focus on offering a solution for men with erectile dysfunction. It has since expanded into women’s health, smoking cessation, and treats over 20 conditions, including sexual health but also weight loss and allergies.

IN THEIR OWN WORDS: “Gender bias in health care research methods and funding has really contributed to sexism in medicine and health care,” said Sonya Borrero, Director of the Center for Women’s Health Research and Innovation at the University of Pittsburgh. “I think we’re seeing again—gender bias in the venture capital sector is going to exactly shape what gets developed.”

That underinvestment was part of the reasoning behind the acquisition, said Zachariah Reitano, Ro’s chief executive. The company developed a female-focused online service in 2019 called Rory.

DETAILS:

• Ro, the parent company of Roman, has acquired Modern Fertility. Axios estimates it sold for $225 million in a majority-stock deal, while TechCrunch reported the deal was “north” of $225 million.
• This deal represents the largest exit for a women’s health company with a focus on reproductive care.
• With the acquisition, Ro said that it is adding fertility testing and reproductive health to its women’s health suite of services, a product that has grown 300% last year in revenue.
• In Q1 2021, Modern Fertility grew about 300% in revenue compared to the year prior.
• Modern Fertility co-founders Afton Vechery and Carly Leahy will lead that vertical for Ro. Afton, who will become President of Women’s Health at Ro, and Carly, who will become VP of Brand, Women’s Health, will together lead all of Ro’s women’s health initiatives.
• Ro started as a men’s health start-up but has expanded into primary care, telehealth, pharmacy, and at-home care services. This diversification has paid off: by the end of 2020, Ro’s revenue was $230 million in revenues, well over its main competitor Hims’ $149 million.
• In December 2020, Ro acquired Workpath, an in-home care API that allows Ro to create a vertically integrated primary care platform, so it can send professionals to a patient’s home or conduct diagnostic tests.
• In March, Ro raised $500 million in Series D funding to expand into telehealth and pharmacy that brought the company’s valuation to over $5 billion. Ro has raised nearly $900 million in venture capital to date, so more M&A could be in the works.