Function Health buys Ezra, launches full-body scan for a third of the price

Blood testing startup Function Health on Monday announced the acquisition of full-body MRI scanning company Ezra and launched a new, 22-minute scan for $499. 

Function offers a $499 annual subscription where members complete more than 160 blood tests and track their results over time. The company said adding Ezra's scanning technology to its platform will allow its users to screen for more conditions and access a more complete picture of their health.

"It makes so much sense," Jonathan Swerdlin, the co-founder and CEO of Function, said in an interview. "What labs aren't covering, scans can see, and what scans couldn't touch on, labs cover."

Function and Ezra declined to disclose the financial details of the acquisition. 

Before Monday's announcement, Ezra's cheapest offering was a 30-minute scan that cost participants $1,495. 

Ezra, founded in 2018, offers a range of full-body MRI scans that can help patients detect cancer and other conditions. The company partners with existing imaging facilities across more than 70 locations in the U.S., according to its website. 

Full-body MRI scans have surged in popularity in recent years after celebrities like Kim Kardashian began posting about them on social media. Medical experts have mixed feelings about the screenings, in part because they're expensive, can result in unnecessary care and can cause patients to worry.

Ezra's primary competitor is Prenuvo, another full-body MRI scanning startup. In February, Prenuvo announced that it closed a $120 million funding round, and it also launched a new blood test to provide insights into patients' hormonal, cardiovascular, metabolic and immune health. 

Ezra has raised a total of $44 million from investors, while Function has raised a total of $53 million as of June 2024. Function is reportedly seeking more than $200 million in fresh capital at a valuation of around $2 billion, according to a February report from Bloomberg.

Emi Gal, the founder and CEO of Ezra, said he has known Function's Swerdlin for years, and that the two began chatting last year about potentially collaborating through a commercial partnership. Over time, though, he said it became clear that an acquisition ultimately made more sense.   

"I'm pinching myself," Gal said in an interview. "This is just a phenomenal outcome."

The company was able to shorten its new scan time to 22 minutes by leveraging artificial intelligence that was cleared by the U.S. Food and Drug Administration in January, Gal said. The AI, as well as Function's "financial prowess," helped reduce the price of the scan to $499, he added.

The new 22-minute scan will be available to Function members starting on Monday. Function does not publicly disclose how many patients subscribe to its platform, but Swerdlin said it's in the "hundreds of thousands." 

Dr. Mark Hyman, co-founder and the chief medical officer of Function, said acquiring Ezra was a natural part of Function's evolution.  

"What used to be the domain of the wealthy is now accessible to everybody, including comprehensive imaging," Hyman said in an interview. "It truly makes a difference for people and saves lives."