Originally published on MediaPost

Last week’s announcement that Stagwell Group agencies Code and Theory (C&T) and Scout Health united in the creation of Code and Theory Health signals a major move in the network to concentrate on health and wellness.

Instantly having “premier credentials in rare diseases is a powerful way for Code and Theory to establish its healthcare division,” explains a C&T spokesperson.

Code and Theory Health will be dedicated to servicing brands and organizations within the healthcare industry, an increasingly profitable and growing segment.

The combination of Scout Health’s in-category healthcare expertise with C&T’s digital perspective is designed to help clients reimagine how they engage and connect with patients, caregivers and healthcare practitioners, says Dan Gardner, CEO-founder, C&T. He believes that this approach creates a powerful, differentiated offering in the marketplace.

Under the deal, Code and Theory Health will be overseen by an executive management team made up of Gardner and Michael Treff, president of C&T, along with Jennifer Brekke, principal and CEO of Scout Health, and Raffi Siyahian, principal and president of Scout Health. Brekke and Siyahian will remain the leaders of Scout Health, which keeps its name as a distinct brand of Code and Theory Health. The new business unit will operate from multiple U.S. and global offices in the current Code and Theory/Scout Health network.

Scout Health was the ideal shop to help C&T establish its division.

The two companies have previously collaborated on projects, and although C&T has developed some health-related work in the past, Scout’s expertise and longevity in rare diseases and specialty pharmaceuticals positions is notable. For its part, the 100-person Scout was interested in better access to digital capabilities.

Also included in this deal is Scout Health’s Atlanta-based, consumer-focused division, known simply as SCOUT, which will further build out the service offerings under this mini-holding company. Code and Theory’s existing portfolio includes Mediacurrent, a leader in Drupal technology, and Rhythm, a specialist in integrated digital marketing solutions. More additions will be announced in the coming weeks.