the invasion of mobile medical apps: a 5-year outlook

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Copyright  ©  Semoegy  Advisers  &  Ventures   1  

WELCOME TO

SEMOEGY LEARNING

Copyright  ©  Semoegy  Advisers  &  Ventures   2  

medical technology

Education Knowledge Information Resource

i

Copyright  ©  Semoegy  Advisers  &  Ventures   3  

The  Invasion  of    Mobile  Medical  Apps  

A  5-­‐YEAR  OUTLOOK  

Copyright  ©  Semoegy  Advisers  &  Ventures   4  

DIGITAL HEALTHCARE

Delivery   Support   Intelligence   Accessible  

ERA  OF  DIGITAL  

TECHNOLOGY  

Technology  

Digital  

Copyright  ©  Semoegy  Advisers  &  Ventures   5  

SMARTPHONES & CONSUMERISATION

EMPOWERING  INDIVIDUALS  

Generate  own  health  data  

Make  decisions  &  manage  health  condiSons  

First-­‐hand  knowledge  about  health  &  well-­‐being  

Copyright  ©  Semoegy  Advisers  &  Ventures   6  

DIGITAL  REVOLUTION  

STAND-ALONE MOBILE SOFTWARE

Copyright  ©  Semoegy  Advisers  &  Ventures   7  

The  concept  of  apps  and  stand-­‐alone  soWware  working  on  mobile  devices  has  existed  

since  the  1990s.    

STAND-ALONE MOBILE SOFTWARE

RHYTHMSTAT  XL  ECG  MONITOR  

Copyright  ©  Semoegy  Advisers  &  Ventures   8  

IOS HEART MONITOR

ALIVECOR  HEART  MONITOR  

Copyright  ©  Semoegy  Advisers  &  Ventures   9  

CONVENTIONAL ECG MONITORING

SIMPLIFICATION  MINITUARISATION  

Copyright  ©  Semoegy  Advisers  &  Ventures   10  

KEEPING IT SMALL & SIMPLE

Low  cost  chip  techno

logy  

MinituarisaSon  

SimplificaSon  of  complex  technology  

Improved  usability  

Same  level  of  funcSonality  or  be_er  

Copyright  ©  Semoegy  Advisers  &  Ventures   11  

KEEPING IT SMALL & SIMPLE

Copyright  ©  Semoegy  Advisers  &  Ventures   12  

AVERAGE  PERSON  

Immediately  available    diagnosSc  tool  

HOSPITALS  

•  Lower  cost  •  Reduced  space  uSlisaSon  •  Greater  mobility  •  Faster  care  response  

ALIVECOR THE BUSINESS

Copyright  ©  Semoegy  Advisers  &  Ventures   13  

Founded by Dr. David Albert Physician, Entrepreneur & Scientist

Under the portfolio of Khosla Ventures

USD$13.5 MILLION Raised in 2012

FDA 2014 MARKET APPROVAL Revenue Model Monitor USD$74.99, App Free

Expanding Digital Healthcare Market

Copyright  ©  Semoegy  Advisers  &  Ventures   14  

Skin Cancer Detection

Tremor Detection

Ear Infection

Smartphone Ultrasound

SkinVision

•  Melanoma  app  •  Track  skin  spots  and  moles  

•  Check  for  skin  cancer  symptoms  

•  www.skinvision.com  

Copyright  ©  Semoegy  Advisers  &  Ventures   15  

Skin Cancer Detection

Cellscope

•  Smartphone-­‐enabled  otoscope  

•  LighSng  and  magnifying  instrument  

•  Visual  examinaSon  of  the  ear  canal  and  tympanic  membrane  

•  www.cellscope.com  

Copyright  ©  Semoegy  Advisers  &  Ventures   16  

Ear Infection

Wearable Technology

•  Parkinson’s  tremor  monitoring  

•  An  aid  for  neurologists  to  diagnose  Parkinson’s  disease  

•  Enable  early  treatment  and  determinaSon  of  medicaSon  dose  

Copyright  ©  Semoegy  Advisers  &  Ventures   17  

Tremor Detection

Reference articles for tremor detection

•  Smart  watch,  app  latest  research  weapon  in  understanding  Parkinson’s  disease  

•  Study  shows  innovaSve  use  of  smartwatch  in  diagnosis  of  tremors  

•  mPowering  the  Apple  ResearchKit:  How  Max  Li_le  put  a  Parkinson’s  app  on  the  iPhone  

Copyright  ©  Semoegy  Advisers  &  Ventures   18  

Mobisante Smartphone Ultrasound

•  Smartphone-­‐enabled  ultrasound  

•  Provides  mobility  and  versaSlity  

•  www.mobisante.com  

Copyright  ©  Semoegy  Advisers  &  Ventures   19  

Smartphone Ultrasound

MARKET VALUE

Copyright  ©  Semoegy  Advisers  &  Ventures   20  

2013 Global Health App

USD$2.4 billion

2017 Projected Growth

USD$26 billion

Q1 2014

100,000 Health Apps

Courtesy  of  mHealth  App  Developer  Economics  2014  

HEALTH APP CATEGORIES

0.6%  1.1%  1.4%  1.6%  2.1%  2.6%  

6.6%  7.4%  

13.6%  15.5%  16.6%  

30.9%  

Remote  consultaSon  &  monitoring  Reminders  &  alerts  

DiagnosScs  Compliance  

CME  PHR  

Medical  condiSon  management  NutriSon  Others  

Wellness  Medical  Reference  

Fitness  

Courtesy  of  mHealth  App  Developer  Economics  2014  

Copyright  ©  Semoegy  Advisers  &  Ventures   21  

BIGGEST POTENTIAL NEXT 5 YEARS

1.40%  

5.40%  

8.70%  

9%  

9.70%  

13.50%  

18.90%  

21.90%  

22%  

22.90%  

26.80%  

31.70%  

38.20%  

53.20%  

Others  LogisScal  and  payments  apps  

Medical  reference  apps  ConSnuiing  medical  educaSon  tools  

Wellness  apps  (e.g.  yoga)  NutriSon  apps  

Compliance  apps  Medical  condiSon  management  apps  

PaSent  health  records  apps  Fitness  apps  

Reminders  and  alerts  apps  DiagnosScs  apps  

Remote  consultaSon  apps  Remote  monitoring  apps  

Copyright  ©  Semoegy  Advisers  &  Ventures   22  

Courtesy  of  mHealth  App  Developer  Economics  2014  

GROWTH IN CHRONIC ILLNESS

Chronically  ill  people  31%  

Health  &  fitness  interested  people  28%  

Physicians  14%  

Temporarily  ill  people  8%  

Hospitals  7%  

Others  12%  

Copyright  ©  Semoegy  Advisers  &  Ventures   23  

Courtesy  of  mHealth  App  Developer  Economics  2014  

MEDICAL APP CATEGORIES

12  12  13  13  14  15  16  18  20  22  

30  31  

40  53  53  

59  69  

113  117  

136  

Medical  sensors  Rheumatology  

Asthma  MulSple  sclerosis  

Psoriasis  Investor  relaSons  

Pregnancy  Skin  care  

Cancer  support  Vision  care  Oncology  

Cardiovascular  Baby  care  Corporate  Diabetes  

Healthy  living  Medical  meeSng  

Animal  health  Medical  reference  

HCP  tools  

Copyright  ©  Semoegy  Advisers  &  Ventures   24  

Courtesy  of  HIT  Consultant  in  “The  Evolving  Landscape  of  Medical  Apps  in  Healthcare”,  2014.  

11%  of  total  

APPS BY MOBILE DEVICE

0.1  

8  

30  

244  

359  

597  

Nokia/Symbian  

Windows  

Blackberry  

Android  

iPad  

iPhone  

Copyright  ©  Semoegy  Advisers  &  Ventures   25  

48.2%  of  total  

Courtesy  of  HIT  Consultant  in  “The  Evolving  Landscape  of  Medical  Apps  in  Healthcare”,  2014.  

TOP 5 DIGITAL HEALTH IN 2015

• Fastest  growing  

Telemedicine  

• TransacSonal  efficiencies  

Payer  &  Hospital  AdministraSon  

• Consumer  decision-­‐making  

Health  Consumer  Engagement  

• Tackling  chronic  illnesses  

Digital  Therapies  

• Fitness  &  well-­‐being  

Personal  Health  Tools  &  Tracking  

Copyright  ©  Semoegy  Advisers  &  Ventures   26  

Telemedicine & Telehealth

•  Fastest  growing  digital  health  category  in  2014  

•  Increasing  by  315%  •  Nearly  US$300million  in  aggregate  funding  

Copyright  ©  Semoegy  Advisers  &  Ventures   27  

FASTEST  GROWING  

Payer Administration

•  Billing  &  reimbursements  •  Hospital  administraSon  systems  

•  Streamline  clinical  workflows  

•  Big  data  and  analyScs  

Copyright  ©  Semoegy  Advisers  &  Ventures   28  

IMPROVE  TRANSATIONAL  EFFICIENCIES  

Health Consumer Engagement

•  Consumer-­‐directed  insurance  health  plans  

•  Reduce  employment  health  insurance  costs  in  2015  

•  ConnexionsAsia  –  www.cxagroup.com  

•  GroupHub.io  

Copyright  ©  Semoegy  Advisers  &  Ventures   29  

CONSUMER  DECISION-­‐MAKING  

Digital Therapy

•  SoWware  delivering  clinical  outcomes  and  health  advice    

•  Chronic  diseases  are  preventable  through  lifestyle  modificaSons  

Copyright  ©  Semoegy  Advisers  &  Ventures   30  

TACKLING  CHRONIC  DISEASES  

Personal Health Tracking Tools

•  Track  exercise,  diet  and  sleep  for  example  

•  Going  towards  interoperability  and  connecSvity  

Copyright  ©  Semoegy  Advisers  &  Ventures   31  

FITNESS  &  WELL-­‐BEING  

Examples  of  fitness/well-­‐being  apps:  MyFitnessPal,  Runkeeper,  Endomondo  and    HealthBytes.  

MEDICAL  PRODUCT  REGULATIONS  

Copyright  ©  Semoegy  Advisers  &  Ventures   32  

MARKET APPROVAL HEALTHCARE PRODUCTS

Copyright  ©  Semoegy  Advisers  &  Ventures   33  

RISK-­‐BASED  ASSESSMENT  

INFLUENCER JURISDICTIONS

• US  Food  &  Drug  AdministraSon  (US  FDA)  United  States  

• DirecSves  for  Medicines  and  Medical  Devices  European  Union  

• Medicines  &  Healthcare  Products  Regulatory  Agency  (MHRA)  United  Kingdom  

• Health  Canada  Canada  

• TherapeuSc  Goods  AdministraSon  (TGA)  Australia  

Copyright  ©  Semoegy  Advisers  &  Ventures   34  

IS YOUR APP A MEDICAL DEVICE?

Intended  Use   DefiniSon   Medical  

Device  

Copyright  ©  Semoegy  Advisers  &  Ventures   35  

REGULATORY  COMPLIANCE  

Diagnosis  

PrevenSon  

Monitoring  

Treatment  

Disease  alleviaSon  

Injury  compensaSon  

Replacement  

ModificaSon  

Support  of  anatomy  or  physiology  

Sustaining  life  

Control  of  concepSon  

Medical  device  

disinfecSon  

Providing  informaSon  for  medical  purpose  

In  vitro  examinaSon  

Instrument  

Apparatus  

Implement  

Machine  

Appliance  

Implant  

In  vitro  reagent  

Calibrator  

SoWware  

Material  

MEDICAL DEVICE DEFINITION

Copyright  ©  Semoegy  Advisers  &  Ventures   36  

AcSon  not  achieved  through  

pharmacological,  immunological  or  

metabolic  means  

What  it  is  

Intended  purpose  

Instrument  

Apparatus  

Implement  

Machine  

Appliance  

Implant  

In  vitro  reagent  

Calibrator  

SoWware  

Material  

MEDICAL DEVICE DEFINITION

Copyright  ©  Semoegy  Advisers  &  Ventures   37  

AcSon  not  achieved  through  

pharmacological,  immunological  or  

metabolic  means  

What  it  is  

Diagnosis  

PrevenSon  

Monitoring  

Treatment  

Disease  alleviaSon  

Injury  compensaSon  

Replacement  

ModificaSon  

Support  of  anatomy  or  physiology  

Sustaining  life  

Control  of  concepSon  

Medical  device  

disinfecSon  

Providing  informaSon  for  medical  purpose  

In  vitro  examinaSon  

MEDICAL DEVICE DEFINITION

Copyright  ©  Semoegy  Advisers  &  Ventures   38  

AcSon  not  achieved  through  

pharmacological,  immunological  or  

metabolic  means  

Intended  purpose  

HOW AN APP BECOMES A MEDICAL DEVICE

Copyright  ©  Semoegy  Advisers  &  Ventures   39  

Mobile  app   Operates  LED   Illuminate  objects   Examine  paSent’s  eyes   Ophthalmoscope  

Reference  tool  e.g.  dicSonary,  

literature,  etc.  

Archiving  &  retrieval  of  paSent  data  

Simple  calculaSons  &  conversions  

Complex  algorithms  for  diagnosScs  

Sports,  leisure  and  wellness  tracking  

Tracking  heart  rate  during  exercise  

Collects  breathing  rate,  heart  rate  and  blood  pressure  for  health  assessment  

Therapy  

DiagnosScs  

Health  Data  

Medical  Device  Unlikely   Very  likely  

LACK OF REGULATORY AWARENESS

Yes  27%  

No  26%  

Do  not  know  47%  

Copyright  ©  Semoegy  Advisers  &  Ventures   40  

Courtesy  of  mHealth  App  Developer  Economics  2014  

DRIVERS FOR MOBILE HEALTH DEVELOPMENT

Copyright  ©  Semoegy  Advisers  &  Ventures   41  

Courtesy  of  mHealth  App  Developer  Economics  2014  

IMPACT ON HEALTHCARE Increase  health  

consciousness  of  the  society  14.60%  

Improve  data  quality  on  diseases  to  develop  improved  medicaSons  or  treatment  plans  

18.90%  

Provide  (be_er)  access  to  healthcare  in  remote  locaSons  

28.70%  

Enable  people  to  take  care  of  their  own  

health  37.30%  

Improve  interacSon  between  paSents  &  

doctors  42.60%  

Reduce  or  slow  down  increase  of  healthcare  

costs  42.80%  

Improve  prevenSon  &  educaSon  43.40%  

Improve  paSent  outcome  46.20%  

Copyright  ©  Semoegy  Advisers  &  Ventures   42  

Courtesy  of  mHealth  App  Developer  Economics  2014  

Copyright  ©  Semoegy  Advisers  &  Ventures   43  

E-­‐mail   Website   Blog  

[email protected]  

www.semoegy.com  

h_p://medtechupdates.semoegy.com  

•  Research2guidance,  mHealth  App  Developer  Economics  2014,  www.mHealthEconomics.com  

 •  HIT  consultant,  Top  5  Digital  Health  Categories  Poised  for  Growth  in  2015,  13-­‐Jan-­‐2015  

REFERENCES

Copyright  ©  Semoegy  Advisers  &  Ventures   44  

Copyright  ©  Semoegy  Advisers  &  Ventures   45