Good news: We are both on vacation next week. Separately though, we’re already spending enough time together to make this newsletter 😉
Bad news: That means there won’t be a newsletter next week. We’ll make up for this!
Big tech companies like Amazon are getting smarter with every interaction and adapt their products to deliver a better service to their customers. We, as customers gladly accept the bargain and trade our own data for a better service. When it comes to sharing healthcare data, access, control and privacy is at the top of our mind. So far, the healthcare data market is highly intransparent. Could a price tag empower the patient as owner and bring us one step closer to a truly transparent market for healthcare data? A digital platform just set a price tag for an individual’s health data set. To incentivize sharing, they value one year of individual healthcare data at USD 120. If the price point is correct remains to be seen, especially in an era, in which pharma companies are under increasing pressure to prove the efficacy of their medicines once they are in day-to-day use. [≈6min]
Insitro, a SF-based start-up, recently teamed up with biotech Gilead to boost their drug development efforts. As we all know, drug development is both costly and rarely successful. By utilizing machine learning algorithms, Insitro analyzes biological data sets to predict possible treatment outcomes at scale. The Insitro-Gilead partnership includes a milestone-based compensation plan with up to USD 1bn in payouts. Such milestone-approach is quite common in biotech / pharma, but not very usual in digital health (yet). As we pointed out in previous briefings, digital health start-ups often lack clinical validation. A milestone-based model could be a low-risk way for traditional healthcare incumbents to engage with start-ups, and help bring necessary clinical validation. [≈6min]
A new era in medicine – value-based reimbursement: The FDA approved Novartis’ USD 2.1mn one-time gene therapy for spinal muscular atrophy – making it the world’s most expensive drug. Novartis claims to work closely with insurers to create a five year outcome-based payment agreement. Insurers and governments will need to decide whether any drug, even lifesaving ones, are worth millions of dollars. Any ideas how to kickstart such a discussion? Because we will have it here in Europe soon, since Novartis expects to receive European approval for the therapy later this year. [≈3min]
Closing as always with the quote of the week: «We’ve always been a ‘digital health company’ not a ‘digital health start-up’. To this day I advise companies to do the same.» CEO of Omada Health, Sean Duffy about the necessity to demonstrate maturity in order to close b2b customers in healthcare, 2019.
Not happy with our selection? Feel free to send us links that interest you.
Have a productive week,