Annum Health Investment Thesis

Annum provides a fully integrated platform that provides support services to people who self- identify as having a problem with alcohol.  This platform integrates therapy, coaching, medication and peer support and provides a superior alternative to rehab for heavy drinkers.

32 million Americans either have or at high risk of having an Alcohol Use Disorder (AUD). Over two thirds of all such individuals are employed, costing employers over $80 Billion annually on lost productivity, in the form of absenteeism and presenteeism. Annum, in collaboration with its health plan partners, will sell its services to large employers – generally, 3,000 employers or greater – seeking to recoup a substantial percentage of this lost productivity. 

Annum Health transforms the treatment experience while eliminating profound barriers to care. Annum fully integrates therapy, coaching, medication and peer support to help employees of large enterprises (3,000 employees or more) change their behavior and reach their goals. After voluntarily opting into its program, participants receive up to one year of treatment by a licensed therapist, a physician and a behavioral health coach. The employer pays the full cost of participation: therapy is provided by phone, a medical evaluation is offered by video, coaching happens through Annum’s proprietary phone app, and anonymous, moderated peer support is available online. If prescribed, medication is covered through the participant’s prescription plan and can be delivered to their home or picked up at a local pharmacy. 

The Annum founder is Michael Laskoff, an experienced health tech entrepreneur. Prior to co-founding Annum Health in 2016 he founded AbleTo. Now a recognized telehealth leader, AbleTo uses behavioral change to reduce medical expense and improve health outcomes. As CEO, Michael raised three rounds of venture funding and secured health plan partnerships to cover over 30 million people.

Post-Mortem: Annum faced the challenge that many startups endure of experiencing client concentration risk. Annum was meant to benefit from a strategic partnership with AETNA, one of the leading insurance groups with US. However, shortly prior to the execution of the partnership, AETNA was acquired by CVS Pharmacies, a transaction which took a long time to close. Annum had built its business from the outset to be one of large scale. However, with revenue outcomes pushed further out due to the delayed partnership, the business simply ran out of funding. It was an unfortunate case of timing. The behavioral health market and the Annum business model has been validated by many entrants that followed, most notably Roman Health.