Medice leads €7m financing of digital health firm Selfapy

German pharma company Medice has led an investment round in Selfapy, a specialist in digital health therapies, that will be used to expand its reach across Europe.

Berlin-based Selfapy specialises in online, 12-week courses based on cognitive behavioural therapy (CBT) for people with a range of mental health conditions – including depression, binge eating disorder, bulimia, and anxiety – which are available on prescription and listed in the directory of the Federal Ministry for Drugs and Medical Devices (BfArM).

It also offers a course for panic disorder to customers on a fee-paying basis, and is working on a digital therapy for chronic pain, according to the company’s website.

Medice – which sells medications for attention deficit hyperactivity disorder (ADHD), as well as therapies for renal anaemia, bladder problems, and over-the-counter (OTC) products – was supported in the €7 million ($7.5 million) round by investment bank Bryan, Garnier & Co, as well as existing investors SHS, Think.Health Ventures, IBB Ventures, and HTGF.

It is the first fundraising for Selfapy since 2020, when it added €6 million to its coffers, and will be used to expand the range of CBT courses it offers, grow within Germany, and enter the market in other European countries.

The company is one of a number trying to solve the problem of limited access to CBT practitioners like psychotherapists in health services around the world, which means people with mental health issues can have to wait a long time for treatment.

CBT can also be a way to help people with mental health disorders resolve problems without resorting to pharmacological therapies, which can be associated with issues including side effects and dependence.

In the UK, for example, four digital therapeutics based on CBT for children and young people with anxiety have been backed for routine use by the NHS, as a way to improve access to this type of therapy, although some concerns have been raised about becoming too reliant on a digital-first approach and diminishing the importance of in-person care.

Selfapy is convinced that digital approaches to helping people manage their mental health have an important role to play.

“We see great potential for digital therapies, both in Germany and internationally, in the field of mental illness,” said the company’s co-chief executive, Adham Kassab.

“With five completed [randomised controlled trials…], and with a broad user base in Germany, we are well on the way to expanding our offering to more, to broaden indications and expand into other markets,” he added.