Paradigm Health Raises $78M, Acquires Flatiron Health's Clinical Research Unit

Paradigm Health, a technology-driven clinical research company, has secured $78 million in Series B funding and announced a significant acquisition, positioning itself as a major player in the evolving landscape of clinical trials and patient care.

Funding Round and Strategic Expansion

Paradigm Health has successfully closed an oversubscribed $78 million Series B financing round, led by Arch Venture Partners. The funding saw participation from a roster of prominent investors, including DFJ Growth, F-Prime, General Catalyst, GV, Lux Capital, Mubadala Capital, and the American Cancer Society's BrightEdge Fund.

The capital injection is earmarked for expansion as Paradigm Health experiences growing demand from global biopharmaceutical companies seeking more efficient trial processes. Additionally, the funds will support the company's efforts to extend clinical trial access to patients closer to their routine care locations.

Kent Thoelke, CEO of Paradigm Health, emphasized the importance of this growth: "Clinical research must reflect the populations that new therapies are intended to serve. By combining Paradigm Health's AI-powered platform with Flatiron's proven clinical research infrastructure and research network, we are taking a major step towards our goal of accelerating our impact in the U.S. so that more trials can happen where patients actually receive care."

Acquisition of Flatiron Health's Clinical Research Business

In a strategic move to bolster its capabilities and reach, Paradigm Health has entered into an agreement to acquire Flatiron Health's clinical research business unit. This acquisition significantly expands Paradigm's network, which will now encompass more than 25 academic medical centers and health systems, along with access to nearly 100 local oncology practices. The combined network is expected to reach approximately 2.4 million U.S. patients.

The deal establishes a long-term partnership between Paradigm Health and Flatiron Health, aiming to integrate Flatiron's clinical research solutions with Paradigm's end-to-end technology platform. This collaboration is designed to enhance patient access to clinical trials without increasing costs, potentially creating the largest cancer research network in the United States.

Industry Impact and Future Directions

The acquisition strengthens Paradigm Health's position within the biopharmaceutical industry, enabling the company to serve 15 of the top 20 global biopharmas. It also adds capacity for conducting phase 4 trials integrated into routine care settings.

Paradigm Health plans to leverage its AI-driven infrastructure, which automates patient matching and site feasibility, to reduce provider burden and accelerate development timelines for sponsors. The company intends to expand its commercial operations beyond oncology into neuroscience, cardiovascular disease, metabolic conditions, and other areas with significant research needs.

Robert Nelsen, managing partner at Arch Venture Partners and Paradigm co-founder, highlighted the company's potential: "Paradigm Health is creating new infrastructure the industry desperately needs: one platform that enables hospitals and sponsors to run studies faster, more intelligently and at far lower cost."

As Paradigm Health integrates these new capabilities and funding, the pharmaceutical industry watches closely to see how this consolidation of technology and clinical research networks will reshape the landscape of drug development and patient care.