This week in InnovationRx, Thyme Care welcomes new leadership, an intestinal illness is on the rise, Chai Discovery secures $400 million in funding, and more. To receive updates directly in your inbox, subscribe here.
Thyme Care founder Robin Shah (left) and incoming CEO Brad Diephuis
Thyme Care
Thyme Care founder Robin Shah plans to step down as CEO on September 1, after six years of leading the company in assisting patients with cancer care navigation. Dr. Brad Diephuis, a primary care physician and cancer survivor who has been co-president and COO for the past two years, will take over.
“We found our Steve Ballmer,” Shah told Forbes, revealing that he foresaw Diephuis as his successor when they met five years ago, despite Diephuis being unaware at the time.
This leadership transition occurs nine months after Thyme Care reached a valuation of $1.1 billion, double its value from its last funding round in 2024. Based in Nashville, the company has garnered $275 million in investments from backers such as CVS Health Ventures, Humana, Foresite Capital, Town Hall Ventures, and Andreessen Horowitz.
Shah, an alumnus of Flatiron Health, which was acquired by Roche for $1.9 billion in 2018, will become executive chairman. In this capacity, he aims to expand Thyme Care into areas like drug affordability and clinical trial access, leveraging AI and automation. “My primary focus is to ensure patient success,” he stated.
Dr. Bobby Green, co-founder, and a medical oncologist, will continue as president and chief medical officer.
Changes in leadership at VC-backed startups often signify a pivotal moment, either due to challenges or plans to go public. However, Thyme Care’s business remains robust, with last year’s revenue exceeding $125 million, about five times that of 2024. The company is profitable, managing over $6 billion in oncology spending, which could increase to $8 billion this year through new partnerships with health plans.
During a meeting on Monday to discuss the leadership change, Shah and Diephuis informed employees that the company’s rapid growth requires a CEO focused on scaling, while allowing the founder to pursue innovative ideas.
Diephuis, who previously served as a senior advisor at the Center for Medicare and Medicaid Innovation, emphasized, “This transition is from a position of strength. Robin is a visionary. My focus is on optimizing what works.”
Diephuis’s personal journey with cancer in his 20s, involving 20 rounds of chemotherapy and 115 nights in the hospital, fuels his passion for improving patient care. He recalls the confusion he faced regarding treatment steps, highlighting the system’s flaws that Thyme Care aims to address.
Thyme Care currently assists 125,000 cancer patients and collaborates with over 14,000 oncologists and 14 health insurers, including Humana and Aetna. The company reports a 28% reduction in emergency room admissions for managed patients, significantly impacting healthcare costs. For instance, a Medicare Advantage customer experienced a 10% cost reduction.
Diephuis asserts, “Cutting costs by doing less is easy; improving quality while reducing costs is challenging.” He envisions doubling the patient base in the next two years.
Nasty Intestinal Illness Spreads
Authorities are reportedly investigating Taco Bell’s role in the outbreak.
getty
The intestinal illness cyclosporiasis is spreading, with 31 states reporting cases. The CDC noted that 843 individuals have been affected by the parasite, causing severe diarrhea. The CDC is also examining over 1,500 additional cases.
Michigan has reported 3,309 cases, with 44 hospitalizations. Officials suspect lettuce or salad greens as potential sources. According to the Washington Post, investigations are underway regarding Taco Bell’s involvement in the outbreak. Some Detroit-area Taco Bells have responded to a nationwide recall by removing certain ingredients from their menu.
Taco Bell stated that while some menu items were withdrawn, “public health officials have not confirmed a link” to any specific source.
Past outbreaks have been traced to fresh produce like raspberries, basil, cilantro, and lettuce. Washing produce may reduce risk but does not eliminate it, whereas cooking at 158°F or higher effectively kills the parasite.
The Trump Administration previously reduced surveillance of food-borne illnesses. Dr. Robert Redfield, former CDC director, emphasized the importance of such monitoring for early detection.
Chai Discovery Confirms $400 Million Funding
AI drug discovery startup Chai Discovery has raised $400 million in new funding, valuing the company at $3.8 billion, led by Index Ventures. Forbes recently highlighted the company, noting talks of securing this level of investment.
AI holds significant potential for transforming drug discovery. Many believe AI could streamline the development of new therapies and target previously “undruggable” conditions. With this vision, San Francisco-based Chai has secured deals with pharmaceutical giants Pfizer and Eli Lilly this year.
Deal of the Week
Apollo Global Management has agreed to acquire a $3.4 billion minority stake in Bayer’s contraceptives unit. This business segment, focused on long-acting reversible contraceptives, will remain within Bayer’s pharmaceuticals division. It posted $1.6 billion in sales last year, marking an 8% increase from 2024. The transaction is expected to finalize in the third quarter.
What We’re Reading
The implications of a father’s $70 million quest for gene therapy for his daughter Grace and its impact on the field.
Eli Lilly, already the largest pharmaceutical company, announced 11 biotech acquisitions in the first half of 2026.
A mother who attributed her twin toddlers’ deaths to routine vaccinations—and became an anti-vaccine activist—has been charged with murder.
Apnimed, developer of a sleep apnea medication, has filed for an IPO. (Forbes profiled Apnimed earlier this year.)
Oxford has initiated the first human trial of a vaccine for the Ebola strain spreading in Congo and Uganda.
As states face Medicaid funding cuts, family caregivers who previously received state payments now face financial hardship.
