Target Company Overview

EGP is excited to announce its investment in Yazen, a unique service that combines a multidisciplinary team of experts with lifestyle support and weight-loss medication to effectively tackle obesity. Yazen has successfully raised an oversubscribed €19.5 million in Series A funding, and with a proven track record in Sweden, the company aims to expand its successful model into European markets.

Obesity has become a significant global health crisis, with the World Health Organization reporting that worldwide adult obesity rates have more than doubled since 1990 and adolescent obesity rates have quadrupled. This health issue is closely linked to various diseases, including cardiovascular diseases, diabetes, cancers, and chronic respiratory disorders. Therefore, it is crucial to offer comprehensive treatment strategies that not only promote weight loss but also facilitate long-term behavioral changes.

Industry Overview in Sweden

The challenges posed by obesity extend beyond individual health, significantly impacting society as a whole. The World Bank reports that escalating obesity rates lead to increases in healthcare costs, reduced productivity, and diminished life expectancy, which in turn adversely affect national economies. Addressing this epidemic requires a multifaceted approach involving healthcare providers, governments, and community organizations.

In recent years, weight-loss medications have gained popularity, although they are not a standalone solution for obesity management. For instance, Wegovy is intended to assist patients in making lifestyle changes and adopting healthier dietary habits, rather than serving as a sole treatment option. Integrated approaches that target both medication and lifestyle alterations are essential for achieving lasting results.

The long-term success of Yazen hinges on its focus on behavioral modification. By providing multidisciplinary care through doctors, nurses, dietitians, personal trainers, and psychologists, Yazen equips patients to develop sustainable habits that can lead to significant, lasting changes in their health outcomes.

Rationale Behind the Deal

The rationale for this investment is grounded in Yazen's promising approach to combating obesity. The company's model emphasizes the importance of community support and shared experiences, empowering patients to help one another in their weight-loss journeys. This support network is essential for fostering motivation and accountability, crucial elements for long-term success.

Moreover, Yazen's pragmatic strategy, developed from the founders' prior experience in building Min Doktor, enables a comprehensive understanding of patient needs and caregiver perspectives. This insight informs the development of a user-friendly platform that effectively addresses the complexities of healthcare.

Investor Information

This funding round was co-led by Evli Growth Partners and Helsana HealthInvest, with participation from Almaz Capital, Yabeo, and existing investors Luminar Ventures and Aggregate Media. We are pleased to announce Mikael Hed, the former CEO of Rovio, as Yazen’s new Chair of the Board. His vast experience in scaling successful brands will be instrumental as Yazen addresses the global challenge of obesity.

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In our expert opinion, the investment in Yazen presents a compelling opportunity. The company's holistic approach to addressing obesity, which includes a combination of medical treatment and lifestyle coaching from a diverse team of specialists, is aligned with current trends seeking effective long-term solutions in healthcare. The impressive results observed in Yazen’s patients—demonstrating a 16% reduction in body weight compared to 9% with medication alone—underscore the effectiveness of their model.

Additionally, the satisfaction of over 20,000 patients highlighted in the performance metrics indicates a high demand and a positive reception of Yazen's services. The significant support from experienced investors emphasizes confidence in Yazen’s potential to scale and succeed in European markets.

Lastly, the importance of community in sustaining motivation and building habits cannot be overstated. Yazen’s strategy incorporates this aspect, creating a social framework that serves to reinforce positive behavior change. This makes Yazen not just a treatment option but a transformative lifestyle change support system, setting it apart from traditional weight-loss solutions.

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