Dear Partner,
2023 was a year of validation for OneOncology and our business model.
We continued our strong momentum by having new practices join the platform and helping OneOncology partners grow by adding local practices, physicians, and cancer care services, including radiation therapy, theranostics, and imaging. Our partnership now includes 20 anchor practices across 16 states.
When our physicians gather at our regional and national meetings and I get the opportunity to talk with them, I’m always blown away by their energy and passion. It inspires me and our company to do what we do best: help them succeed and take care of patients.
Transaction
When we initiated our process of a potential transaction, the amount of interest we had from both strategic investors and financial sponsors was amazing. Reaching a $2.1 billion valuation in under five years is truly a validation of our vision, mission, and business model.
The overwhelming investor interest afforded us the luxury of selecting new partners who are completely aligned with OneOncology’s culture and growth plans. Our new investors have a track record of taking medium scale enterprises to a significantly larger scale, which is exactly the position we’re in at OneOncology. I am extremely excited about what the future holds with TPG and Cencora.
Maximizing Partner Value
With a validated business model, moving into a true growth equity stage places an obligation on OneOncology to deliver as much value to community oncology practices across the country as possible.
Maximizing value to our partners means adding practices to our national partnership footprint and helping our partners grow their groups locally and expand their services outside of the core infusion suite. Whether its improving oral pharmacy operations, adding radiation therapy, lab or imaging services, or enhancing a physician liaison program to grow a practice’s reach in the community, OneOncology delivers practices value, which in turn, grows our company.
Maximizing value also means, under Dr. Davey Daniel’s leadership, building our clinical technology, precision medicine, and analytics offerings to make it easier for our physicians to deliver the highest quality care possible. We’ve also bolstered our clinical research offering by hiring Ian Flinn, MD, PhD as Chief Scientific Officer overseeing OneR, OneOncology’s centralized clinical trial site management organization. OneR delivers research sites operational and administrative expertise, including handling regulatory and compliance activities, managing patient recruitment, and data collection.
Adding Top Executive Talent
In 2023, we also added executive talent who are contributing to the value we deliver to our practices. Bringing on a Chief Operating Officer in Todd Stevens, who has 30 years of oncology experience, is invaluable. Oncologists have a specialty mentality. You can’t just walk into the field, no matter how smart you are, and understand it. Todd’s technical expertise and years of management experience are incredible attributes to share with our partner practices.
As you’ll read about in this report, we’re already making progress. Under the leadership of Todd, as well as Andy Corts, Chief Technology Officer, and Nirav Shah, Chief Revenue Officer, we have launched a centralized services model to bring our practices revenue cycle management, IT security, and physician credentialing capabilities at a fraction of the cost compared to what any singular practice could get on its own.
Our new chief legal officer is not new to OneOncology. Vinay Bhupathy started his involvement with OneOncology seven years ago at the foundation of our company while working at Sheppard Mullin, bringing him a deep understanding of how our model functions and commitment to supporting physicians and their businesses. Prior to joining us, Vinay was the general counsel for a biotech company. His experience working for a biotech and knowledge of our business model are immense value drivers for practices. Vinay and his legal team bring practices top-notch legal counsel to protect the value oncologists have spent careers creating through breakthroughs and hard work.
Investing in our Employees
With all the success OneOncology has achieved in 2023, I am most proud of our long-term incentive program that allows all our employees to participate in the growth of our equity value. Our employees are our most precious asset, and I couldn’t be prouder of the commitment OneOncology is making to our people.
By granting equity to our employees, OneOncology is choosing to invest in our owner-mentality culture. As a physician-led company, we believe in servant leadership, and our employees commit to putting our physician practices first. We are all responsible for carrying forth this culture, which continues to be a differentiator for our platform. I am grateful that our employees will now share as owners in the value they help to create for our physicians, practices, and patients.
Sincerely,
Jeff Patton, MD
CEO, OneOncology