By Anna Wilde Mathews 

UnitedHealth Group Inc. bought PatientsLikeMe, a company that helps connect people who have similar health conditions, after the startup was forced to divest an investment by a Chinese firm.

The company will become part of UnitedHealth's research operation, according to an email PatientsLikeMe sent to customers. UnitedHealth Group is the parent of the largest U.S. health insurer, UnitedHealthcare, and a rapidly growing health-services arm called Optum.

The deal reflects the deep appetite for patient data in the health industry, with pharmaceutical and other life-sciences companies as well as insurers, technology companies and health-care providers all eager to tap new sources of information in developing treatments and ways to manage care.

PatientsLikeMe bills itself as the "world's largest personalized health network," and it says that more than 650,000 people with 2,900 conditions have helped generate data. The company calls its site "an unprecedented source of real-world evidence."

The acquisition closed on June 19, according to the PatientsLikeMe email. Terms weren't disclosed.

The sale to UnitedHealth came after an investment in PatientsLikeMe by Shenzhen-based digital health company iCarbonX, which is backed by Chinese internet giant Tencent Holdings Inc., came under scrutiny by the Committee on Foreign Investment in the U.S. Cfius, an interagency panel that vets foreign investments for security risks, demanded iCarbonX unwind its 2017 investment.

ICarbonX couldn't immediately be reached for comment.

A Treasury Department spokesman said Cfius doesn't comment on specific cases.

PatientsLikeMe declined to comment.

In the email to customers, PatientsLikeMe said it is "joining the research and development arm of UnitedHealth Group." The company told customers that "there will be no transfer of your personal data inconsistent with the original consent, from the PatientsLikeMe's secure database."

The company also said it was "committed to using your data for good, protecting your data, and advancing our understanding of diseases through your partnership."

"We look forward to collaborating on patient-first research and building upon the supportive communities patients have come to rely on," a UnitedHealth spokesman said in a statement.

The deal was first reported by MobiHealthNews.

Write to Anna Wilde Mathews at anna.mathews@wsj.com

 

(END) Dow Jones Newswires

June 25, 2019 11:55 ET (15:55 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
UnitedHealth (NYSE:UNH)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more UnitedHealth Charts.
UnitedHealth (NYSE:UNH)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more UnitedHealth Charts.