How a relatively unknown startup is shaking up the health tech world

Ruth Reader here, again!

Obviously, the news of the week is The New York Times profile of Medvi, a virtual care company that didn’t even exist three years ago and is projected to do $1.8 billion in sales this year, connecting patients with weight-loss drugs. 

The company is run by two people, founder Matthew Gallagher, and his brother Elliot, the company’s only employee. Instead of workers, Gallagher has made proficient use of artificial intelligence and partnerships. He used CareValidate, a platform that provides the infrastructure for a telehealth business, to spin up Medvi’s front-door and OpenLoop’s doctor and pharmacy network to prescribe GLP-1s and handle compliance.

It’s akin to drop-shipping for weight loss drugs. 

Medvi has taken no outside investment, and Gallagher says it only took two months and $20,000 to get this business started. 

The company is a stunning example of how artificial intelligence is making it easy to start a new healthcare company.  

A few notes: the drugs that Medvi is selling are compounded, not brand-name drugs. The Food and Drug Administration has recently cracked down on telehealth companies that prescribe compounded GLP-1s, including Medvi. In March, the agency sent Medvi, as well as 29 other telehealth companies, warning letters letting them know the agency believed they were misrepresenting the safety of their products and where they come from, in violation of unfair and deceptive practice laws. OpenLoop is also facing allegations that it’s violating both consumer protection rules and Racketeer Influenced and Corrupt Organizations laws.

In February, the Department of Health and Human Services General Counsel Mike Stuart referred telehealth company Hims to the Department of Justice to investigate whether the company is misrepresenting the compounded drugs it sells. Should the DOJ take up the case, it will signal that the government intends to take action against similar companies. 

It is against this backdrop that Hims settled a patent-infringement suit with weight loss drugmaker Novo Nordisk last month. Hims will now be selling Novo’s brand-name drugs: WeGovy and Ozempic. 

All this to say, Medvi is making a lot of money, but it’s unclear how durable it is to sell compounded weight-loss drugs, particularly through a Medvi-like structure. 

Rather, the takeaway from the Medvi article is that health tech innovators can really take advantage of the new AI era, as multi-time founder and managing director at consultancy Mannatt, Josh Tauber, and Keaton Bedell, founder of health insurance infrastructure platform Bridge, wisely noted on this week’s episode of Lifers. 

Medvi’s use of technology is impressive, notes Tauber, but there’s no moat around his business. “I’m not sure there is a moat around software anymore,” Tauber told Second Opinion. 

Bedell agreed, which he thinks is an opportunity for health care businesses that can use artificial intelligence wisely and focus their attention on creating differentiation around the care they give. AI may also give way to new financial models in health tech.

“You can bootstrap something like this for $50,000. That opens the door for many more companies to be built that don’t need to be venture-backed,” said Bedell, something he says may be healthier for the health care category at large.   

The 100% tariffs on brand-name drugs only apply to a lot of drugmakers

The Trump administration has announced that imported brand-name drugs will be subject to 100% tariffs. It’s a scary levy, but the carveouts are so significant that a large number of big pharmaceutical companies will be exceptions to the rule. The drugmakers that have struck a deal with the administration won’t have to pay, and the ones that pledge to bring production to the US will be able to cut the tariffs to 20%. Some biotech products are also exempt from tariffs. 

Eli Lilly’s GLP-1 pill received FDA approval

In the never-ending GLP-1 wars saga, a new battle is about to start: After Novo Nordisk launched a Wegovy pill, Eli Lilly received approval for Foundayo, its own GLP-1 pill. Investors think it could bring significant growth to Lilly’s business, as it’s easier to take than Wegovy’s competitor, a peptide that should be taken half an hour before any food or drinks. 

Ambient AI scribes don’t save that much time

Turns out, AI scribes don’t save doctors that much time — this according to a large new multisite study that looked at productivity among some 8,500 clinicians between 2023 and 2025. Those who adopted AI scribes saved only 13 minutes in medical records and 16 minutes in documentation for every eight hours of patient care. 

LOOK AHEAD!

At a time when AI is capable of solving problems that physicians can’t, what should receive a breakthrough device designation? This STAT feature looks at what AI can (or will soon be able to) do, and the distance between getting a breakthrough designation and delivering an actual breakthrough in science and care.

$575 million for Whoop: The maker of the wellness device that counts LeBron James and Cristiano Ronaldo among its investors announced new financing at a $10.1 billion evaluation. 

$4 million CAD ($2.8 million) for Coral: Canada’s women’s health app closed an acceleration round, bringing the total capital raised to $8 million CAD.

$200 million for EGYM: The corporate wellness network closed a growth round of capital from L Catterton and others at a valuation of $1 billion. 

AIF reached the first close of its second fund (Fund II): The VC for autism and behavioral health now has about $150 million in assets under management with lead investors Abstract and Lightspeed Venture Partners.

United Healthcare launches Avery: The insurance network introduced a generative AI companion to help members with care coordination. 

Ambiance launches Chart Chat for Nurses: The company’s first product built specifically for nurses, Chart Chat, helps them understand the full patient picture before care begins, pulling from the entire medical record.

Hartford Healthcare and K Health launch PatientGPT: The new AI tool will help patients find health information.

Natural Cycles and Garmin partner: Users of certain Garmin wearables will be able to download the FDA-cleared birth control app.

For the latest episode of Lifers, Chrissy recorded live in Dallas at HFMA with Terri Meier (Assistant Vice Chancellor for Revenue Cycle at UAMS). Together, they pull back the curtain on the $300 billion part of healthcare nobody talks about.

They cover:

Thanks to Smarter Technologies, which facilitated this conversation.

More About Lifers:

Lifers Podcast features Christina Farr, CEO of Second Opinion Media and a former CNBC journalist and healthcare investor, in candid conversations with healthcare founders and CEOs building for the long term. Focused on real-world strategy, regulation, and innovation, it offers a no-hype look at what it actually takes to succeed in the $4 trillion healthcare industry.