[Health 2.0] Medical Apps: Promising Business Environment but Investors Require Caution | L’Atelier: Disruptive innovation

The emergence of the digital tools sector in the medical industry has generated large amounts of
investment, but this enthusiasm should be measured against the background of actual market trends.

There are now close to 97,000 medical apps on the market, not including the many platforms and connected objects which either already exist or are due to be launched soon. All this means that since 2006 some $7 million has been invested in the digital health sector – an impressive figure which covers a wide range of startup companies and products.  Nevertheless, this investment figure is not at all reflected in the actual penetration of these devices into medical institutions, which remains extremely low. So how can investors be sure of a return on their investment in the sector today? This was the question addressed by a number of sector experts and investors at a lunchtime workshop held during the Health 2.0 event which took place in London in mid-November.

A unique opportunity…

During the workshop, on the theme of ‘Investing in Digital Health – Why and How?’, Vishal Gulati, Managing Director of Radiant Capital, an independent private equity advisor to dedicated international cross-border funds, underlined: “Digitisation of healthcare is evolving very fast, but as for knowing whether the impact will have expected results, the dynamic is of epic proportions, but it’s the timing we can’t be sure about.” Janke Dittmer, a Partner at Dutch company Glide Healthcare Partners, provided more detail: “We find ourselves in a particularly promising situation due to four major factors. On the one hand the reform of healthcare services in the United States is forcing profound changes in the business models. In addition, our aging population means a rise in costs linked to chronic illness. On top of these changes in the structure of the sector come the added advantages arising from the current economic climate: “[…] the digital revolution is today acknowledged by everyone and moreover we’re right in the golden age of entrepreneurship,” he told the audience. Of course it is not only the US that has felt the need to make fundamental reforms in the way their medical institutions work; European countries also recognise the need, faced with the rising costs of social security, France being a prime example.

See on www.atelier.net

From Pharmaceutical Industry digital vision

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