bridging the consumer-clinic revenue gap to the $42 billion mhealth...

Bridging the consumer-clinic revenue gap to the $42 billion mHealth market

Arnold Bos

Consultant – EMEA region

June 16th, 2015

Diagnosis is the first step to improving health

2

mHealth technology is a key enabler of the shift to decentralized healthcare

De-centralized healthcare

mHealth

Centralized healthcare

Primary care

Where can mHealth technologies be used?

3

Emergency medicine

Security & Safety

In-field / remote settings

Chronic care

Home Care

Sport & Fitness

Food & Nutrition

Self management

Clinical markets Consumer markets

Opportunities for mHealth are almost anywhere

The mHealth market is already over $5 billion today

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Sales (US$ billions)

Imaging Smart Objects Vital Signs IVD Other

Clarification of regulatory approaches will help the clinical space grow

Decision-support algorithms will actively drive adoption of mHealth devices

Vital signs monitoring (VS) and IVD are the cornerstones of the mHealth industry and will make up 80% of the mHealth devices market by 2023

4

By 2023, mHealth will grow over $41 billion; vital sign monitoring will remain one of the cornerstones

Opportunities abound, both in the consumer, and the clinical market

Clin

ical

IVD

Vital signs

Imaging

Other

Consumer

IVD

Vital signs

5

mHealth

Vital signs

Vital signs

Technologies that can transition the consumer-clinical gap, can capitalize in both markets

Electronics

Materials

Optics

Precision Mechanics

Integrators

Chemicals

What opportunities can you address?

Materials

• Adhesives • Polymers • Alloys • Nanomaterials • Composites • Coatings • Smart fabrics

Chemicals

• Reagents • Disinfectants • Binding agents • Stabilizers

Electronics

• Amplifiers • Filters • Power supplies • Batteries • Dedicated CPUs

Optics

• Filters • Lenses • Detectors • Lasers • SLDs • LEDs • Gratings

Precision Mechanics

• Actuators • Joints • (µ)fluidics • Enclosures • Translation

Integrators

• Manufacturing • Miniaturization • Packaging • Systems

engineering • Backend

systems

6

Analytics

Leveraging the analytics is critical to generate revenue

Devices

Devices can measure a multitude of biomarkers, from many different sample locations

7

Temperature

Stool Microbiome

Nutrients

Respiration

Activity

Heart rate

Tears

Saliva

Sweat

Skin

Urine

Emerging devices can measure more relevant biomarkers, with increasing accuracy

mHealth needs analytics to help translate big data into actionable recommendations

8

Personal information

Activity

Calorie intake

Metabolite profile

Microbiome profile

Friends’ data

Genome?…

Sleep pattern

Analytics

The quick money for vital sign monitoring is in the consumer market. But, it’s a bit of a boring market… To get to the big money, companies must build their path to the clinical market

$-

$5

$10

$15

$20

$25

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Mar

ket S

ize

(USD

, bill

ions

)

Year Consumer Clinical

After a slow start, developing markets leap-frogging technology adoption, combined with clarification of regulations, will see the clinical market expand rapidly

In 2023, clinical applications constitute a market value of $16 billion and represents 70% of the total mHealth vital signs monitoring market.

9

mHealth startups utilize different strategies to bridge the revenue gap

Wearable accuracy on par with current clinical monitoring equipment

Software can analyze and evaluate patient data to alert patient and caregivers

10

Targeting consumer applications, compatible with third-party apps

Technology platform designed with potential for clinical accuracy

Open-access analysis platform, aimed to find causes for the gathered data

Developed optical sensor, to incorporate into third-parties’ wearables

Wearable + ingestible device is unfamiliar territory for FDA approval

Targets the consumer market with sensor product only

Technologies for consumer applications can be ‘good enough’. In clinical, they need high accuracy

Can the technology provide meaningful, actionable information for consumers?

Will the product generate revenue to fund further technology development?

Can the technology evolve to enter the clinical market in the long-term?

Can the technology claim the accuracy needed for the regulated clinical market?

Can my sensor package be downsized for consumer applications?

Can the technology capture consumer applications for short-term revenue?

11

Consumer market

Clinical market

Necessity for high accuracy

Approximate measurements suffice

Short term Long term

Can the technology transition the consumer-clinical revenue gap?

Lux Research BV. Valschermkade 36-E, 1059 CD, Amsterdam, Netherlands Phone: +31 20 3460840 EMEA@luxresearchinc.com www.luxresearchinc.com

Thank you

Arnold Bos Consultant Arnold.bos@luxresearchinc.com +31 20 808 7536