Dear fellow digital health enthusiasts,
The Fortune 500, a list ranking the top 500 companies by revenue, was published this week. For the first time, China combined with Taiwan (129) has more companies on the list than the US (121). In health care, the landscape looks different though: There’s a total of 52 health care companies, 19 from the US, 12 from China, and 21 from other countries.
Asking the customer to incorporate lab results, prescription information and medical history after receiving their DNA test? 23andme buckles up with Human API to collect more health data and is now moving into Apple territory. Both companies are trying to create a new EHR-System through their products, starting by utilizing data directly provided by the end customer. Apple is still missing the genetics data component – but we are sure that their M&A team is already working on it 😉 [≈ 3min]
Since there are a lot of investors amongst our readers, we wanted to quickly point out that 8 years of data backs the claim: «Seed is the new Series A». For digital health founders, this is good news, since the larger seed rounds make sense in market as slow-moving as health care (= additional runway!). For investors it means that they need to sharpen their value proposition to compete on deals and might re-evaluate risk class and ticket range fit their investment strategy. [≈ 2min]
All digital health companies want to lower health expenditures while improving outcomes. However, they seem to target primarily healthy people who make up a small proportion of health expenditures and who are already engaged in the healthcare system. What about low-income and diverse patient groups, that could benefit most from digital health apps, but lack access? With the help of the public health system, this group could be engaged more directly. [≈ 3min]
Data breaches hit health care companies the hardest. A data breach costs a health care company roughly USD 6.5mn (USD 429 per patient record), while in all other industries, the cost is around USD 3.9mn. Especially smaller and mid-sized companies are vulnerable. Data breaches can have direct cost impact, but also lead to a loss in business which can be felt for years. Nowadays, most data breaches are a direct result from cyber attacks (51%). It’s important for digital health companies to consider these realities in their product, but also in their sales pitch. [≈ 4min]
Closing as always with the quote of the week: «We will take back control of roughly £350mn [sic] per week [EU-related spending]. It would be a fine thing as many of us have pointed out if a lot of that money went on the NHS, provided we use that cash injection to modernise and make the most of new technology.» – Boris Johnson, 2017 in his «glorious» Brexit essay, newly elected Prime Minister of the United Kingdom.
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Have a productive week,