WebMD's former CEO David Schlanger and CFO Peter Anevski, who both left the company in September, have landed at fertility start-up Progyny.
Schlanger joined in December as CEO and then recruited Anevski to be CFO and chief operating officer of the New York-based startup, which provides fertility benefits, like in vitro fertilization and egg freezing, to large employers.
During Schlanger's tenure, WebMD's yearly revenue grew 23.5% to $636.4 million in 2015, up from $515.3 million in 2013. Net income grew 323.6% to $64 million from $15.1 million during the same time period. WebMD replaced Schlanger with longtime WebMD senior executive Dr. Steven Zatz.
Schlanger replaces Progyny founder Gina Bartasi as CEO. The start-up was formed when Bartasi's website Fertility Authority, merged with the fertility tech company Auxogyn in 2015. A spokeswoman for the firm said Bartasi agreed to serve two years as CEO before handing “the reins to someone more seasoned in building and leading businesses.”
Progyny recently raised $15 million in a new round of funding in June. It's tapping into a fertility industry estimated to be worth between $3 million and $4 billion by research firm Harris Williams & Co.
But the number of employers who offer fertility benefits to their workers has remained stagnant over the years. Just a quarter of large employers cover IVF and only 10% cover egg freezing, according to an October 2016 survey by employee benefit consultant Mercer.
Those who do offer fertility services through the health plan are usually large employers, like Southwest Airlines and Intel, looking to lure talent. People who don't work for such an employer usually have to pay large sums out-of-pocket for fertility treatment. The average cost of an IVF cycle in the U.S. runs about $12,400, according to the American Society for Reproductive Medicine.
Just 15 states have laws requiring insurance companies to cover infertility treatment. Eleven states mandate coverage to varying degrees, according to the society.
