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The medical industry is sitting on a huge trove of data, but in many cases it can be a challenge to realize the value of it because that data is unstructured and in disparate places.
Today, a startup called Mendel, which has built an AI platform both to ingest and bring order to that body of information, is announcing $18 million in funding to continue its growth and to build out what it describes as a “clinical data marketplace” for people not just to organize, but also to share and exchange that data for research purposes. It’s also going to be using the funding to hire more talent — technical and support — for its two offices, in San Jose, California and Cairo, Egypt.
The Series A round is being led by DCM, with OliveTree, Zola Global, and MTVLP, and previous backers Launch Capital, SOSV, Bootstrap Labs and chairman of UCSF Health Hub Mark Goldstein also participating.
The funding comes on the heels of what Mendel says is a surge of interest among research and pharmaceutical companies in sourcing better data to gain a better understanding of longer-term patient care and progress, in particular across wider groups of users, not just at a time when it has been more challenging to observe people and run trials, but in light of the understanding that using AI to leverage much bigger data sets can produce better insights.
This can be important, for example, in proactively identifying symptoms of particular ailments or the pathology of a disease, but also recurring and more typical responses to specific treatment courses.
We previously wrote about Mendel back in 2017 when the company had received a seed round of $2 million to better match cancer patients with the various clinical trials that are regularly being run: the idea was that certain trials address specific types of cancers and types of patients, and those who are willing to try newer approaches will be better or worse suited to each of these.
It turned out, however, that Mendel discovered a problem in the data that it would have needed to enable its matching algorithms to work, said Dr. Karim Galil, Mendel’s CEO and founder.
“As we were trying to build the trial business, we discovered a more basic problem that hadn’t been solved,” he said in an interview. “It was the reading and understanding medical records of a patient. If you can’t do that you can’t do trial matching.”
So the startup decided to become an R&D shop for at least three years to solve that problem before doing anything with trials, he continued.
Although there are today many AI companies that are parsing unstructured information in order to extract better insights, Mendel is what you might think of as part of the guard of tech companies that are building out specific AI knowledge bases for distinct verticals or areas of expertise. (Another example from another vertical is Eigen, working in the legal and finance industries, while Google’s DeepMind is another major AI player looking at ways of better harnessing data in the sphere of medicine.)
The issue of “reading” natural language is more nuanced than you might think in the world of medicine. Galil compared it to the phrase “I’m going to leave you” in English, which could just as easily mean someone is departing, say, a room, as someone is walking out of a relationship. The “true” answer — and as we humans know even truth can be elusive — can only start to be found in the context.
The same goes for doctors and their observation notes, Galil said. “There is a lot hidden between the lines, and problems can be specific to a person,” or to a situation.
That has proven to be a lucrative area to tackle.
Mendel uses a mix of computer vision and natural language processing built by teams with extensive experience in both clinical environments and in building AI algorithms and currently provides tools to automate clinical data abstraction, OCR, special tools to redact and remove personal identifiable information automatically to share records, search engines to search clinical data and — yes — an engine to enable better matching of people to clinical trials. Customers include pharmaceutical and life science companies, real-world data and real-world evidence (RWD and RWE) providers and research groups.
And to underscore just how much there is still left to do in the world of medicine, along with this funding round, Mendel is announcing a partnership with eFax, an online faxing solution used by a huge number of healthcare providers.
Faxing is totally antiquated in some parts of the world now — I’m not even sure that people the age of my children (tweens) even know what a “fax” is — but they remain one of the most-used ways to transfer documents and information between people in the worlds of healthcare and medicine, with 90% of the industry using them today. The partnership with Mendel will mean that those eFaxes will now be “read” and digitized and ingested into wider platforms to tap that data in a more useful way.
“There is huge potential for the global healthcare industry to leverage AI,” said Mendel board member and partner at DCM, Kyle Lui, in a statement. “Mendel has created a unique and seamless solution for healthcare organizations to automatically make sense of their clinical data using AI. We look forward to continuing to work with the team on this next stage of growth.”
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“Whatever your symptom, WebMD says you have cancer.” It’s a long-running joke that underscores the distrust of perhaps the top source of medical advice, stemming from a confusing site clogged with ads that’s been criticized for questionable information and pushing pills from its sponsors.
Health Guide is the new medical handbook for the internet, where 30% of content is written by doctors and 100% is reviewed by them. On a single clean, coherent page for each condition, it lays out a tl;dr summary, what the ailment really is, how to spot the symptoms and what you need for treatment. Rather than pushing you to nervously keep clicking, it just wants to answer the question.

Health Guide officially launches today. It was built by digital pharmacy Ro, which has raised $176 million for medicine brands Roman for men’s health, Rory for women’s health and Zero for smoking cessation. With Ro, patients can get a $15 telemedicine consultation with a doctor, receive an instant prescription and have it filled and sent to you from the startup’s in-house pharmacy operating in all 50 states. A competitor to Hims & Hers, Ro scored a $500 million valuation last year.
Rather than aggressively hawking its own products at the end of articles, Health Guide just lists the medications you could take, insists you ask a doctor what’s right and leaves it up to you to choose where to buy. Ro founder Zachariah Reitano calls Health Guide “a significant investment in trust. There’s not a clear ROI (return on investment) to it but it’s one of those long-term bets . . . Providing education to patients will serve Ro really well in the long-run.” He acknowledges the suspicions of self-dealing, and says “if we don’t do this correctly, it can hurt more than it can help.”

On Health Guide you can search for specific conditions, browse categories like diabetes or hair loss and browse featured articles like “Proven ways to increase the density of your bones” or “How do you test for gonorrhea.” There are no banner ads, so your search about the flu or testosterone won’t immediately lead to you being bombarded with promotions for Mucinex or dicey supplements. “On these other sites . . you have [advertisers] with unregulated supplements and services that are the highest bidder beside medical information, which creates a lot of distrust.”
The simplicity and accuracy of Health Guide has already attracted a sizable audience. It’s on pace to reach 30 million readers this year, with 25% being women despite Roman’s initial focus on aiding men with erectile dysfunction. It already ranks in the top 10 Google results for 300 medical questions. The no-filler entries come signed by the specific doctors that wrote or approved them, and Ro pledges to have them reviewed and updated at least once per year. At the bottom are links to all the original source material, including peer-reviewed medical journals.

Reitano tells me that the idea from Health Guide came after Ro’s physicians and customer service were bombarded with the same patient questions over and over. The easiest move was to put all the answers on an open site they could send patients to. A major goal was to debunk hoaxes other sites often don’t address directly. “For something like vaccines where there is a potential for misinformation, you’ll see us take a strong stance. We won’t let the potential for misinformation spread through Health Guide.”
One thing Health Guide is missing that could keep people coming back to WebMD is a symptom checker. Right now it’s better at research on major conditions or lifestyle choices than figuring out why your throat’s sore. But given it’s day one and Ro has tons of funding, it has plenty of time to improve. There’s sure to be concerns about how it collects data and what treatments Health Guide lists. So as a precaution, it never forcefully makes recommendations besides asking a doctor for personalized advice, and there’s just one button atop the site for visiting its medication marketplace.

Ro is trying to move fast as the ePharmacy space heats up. It plans to launch 10 more products in the next two quarters, with a focus on Rory for women. It just struck an exclusive deal with Pfizer to provide Roman customers with generic Viagra, offering clear supply chain transparency around a drug that’s often counterfeited. And thanks to its licenses across all states, it’s helping new weight loss treatment Plenity launch nationwide atop its diagnosis, prescription and fulfillment technology.
Yet Reitano sees space for multiple startups to succeed in replacing embarrassing and inconvenient in-person trips to the doctor or drug store. “It might be a somewhat cheesy answer but . . . the best thing about competition is it makes everyone build a better experience for patients,” he says, citing NURX and PillClub enhancing birth control access. “I think all this innovation in digital health — it’s an absolutely massive market. No one’s taking market share from someone else. We’re raising the bar for care.”
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