VALAMONT ADVISORS, LLC

Science Driven Strategy Design

DIGITAL HEALTH OPPORTUNITIES
ENABLED BY WEARABLE SENSORS
March 2014
Technology
Grow
We enable your technologies to achieve their full potential,
your products to have the widest benefit and
your franchises to deliver maximum value.
We deploy scientific and market knowledge with
broad strategy expertise and tailored analytics
to translate innovative technologies into novel products
that restore and enhance health.
VALAMONT
Need integrated scalable platform for consumers, caretakers and clinicians that:
- aggregates data from multiple sensor health, wellness, and fitness devices, across settings & uses
- is interoperable with these devices and apps
- can apply intelligent, personalized, and contextual analytics to the data, and
- can enable social experiences.
KEY NEED: Holistic health monitoring & management
Wearable Sensor Perspectives
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Health sensors enable continuous monitoring at the point-of-patient,
anywhere
Range of wearable sensor biometrics expanding rapidly across whole body
Capturing data with contextually relevant information enables provision of
personalized, localized, and relevant aided decision making no matter
where the patient is
Engagement and interaction, whether via gamification, social interaction,
location-based services or interacting with the users environment to
provide real-time feedback (e.g. music, lighting, gameplay)
GOAL: Enable Contextual Relevance and Compelling
User Experiences that Drive Sustained Behavioral Change
Smart Data,
not just
Big Data
Anything,
Anytime,
Anywhere
Engage,
Interact,
Adapt
VALAMONT
Biometric-Enabled Applications
The convergence between biometric sensors and mobile platforms is driving explosive growth in
innovative wellness and medical applications, as well as biometric-enhanced consumer apps
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Wearable Sensor Perspectives
Mobile
Platforms
Biometric
Sensors
Biometric Mobile Apps
Social networking
Gaming
Dating
Entertainment
Productivity
Mind/Body Wellness Apps
Fitness, Strength
Food, Diet, Nutrition
Sleep
Stress, Mood
Attention, Memory
Mobile Medical Apps
Chronic Disease Mgmt
Medication Adherence
Post-Discharge Mgmt
Connected Healthcare
Wearable Diagnostics
Digital Therapeutics
Physical
Motion
Pressure
Temperature
Perspiration
Electrical
Heart Rate / EKG
EEG
Chemical
Microneedles
Microfluidics
Prep & detect
Chemicals, proteins,
nucleic acids
Communication
Low-energy Bluetooth
WiFi, RFID
Body Area Networks
Physical Meters
Clock
Accelerometer
GPS/location
Data
Use patterns
Calendar, contacts
Messaging, mail
Social networks
Mind/Body Wellness Apps
Biometric Mobile Apps
Mobile Medical Apps
Physical
Electrical
Chemical
Communication
Time & Location
Data & Usage
VALAMONT
Technology Elements / Sectors
Stakeholder Settings Applications
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Consumer Fitness & Wellness Quantified Self / Fitness
Preventative Health Mgmt
Personalized Health Regimens
Aging in Place Connected Home / Auto
Disease Monitoring / Tracking
Chronic Disease Mgt. Disease Detection / Screening
Medication Adherence
Physician Digital Therapeutics
Prescription Therapy Closed Loop Dx/Rx Systems
Remote Diagnosis/ Imaging
Emergency Medicine
Post-Discharge Management
Hospital Acute Care Post-Surgical Management
Inpt. Continuous Monitoring
Wearable Sensor Perspectives
4
Digital Health Technology and Application Landscape
Digital product categories are emerging across fitness and wellness, chronic disease management,
prescribed interventions and acute care
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Fitness (activity, body comp)
Metabolic / Diabesity (glucose, insulin pumps)
Cardiovascular (hr, bp, EEG, connected implants)
Respiratory (O2, res rate, FEV1)
Neuro/Psych (attention, memory, sleep, mood)
Musculoskeletal (dynamic implants)
Inflamm/ Rheumatology ?
Gastrointestinal / Hepatic ?
Renal Function ?
Endocrinology ?
Womens Health / Fertility ?
Hematology / Oncology ?
Infectious Disease ?
VALAMONT
Wearable Connected Health Sensors Key Success Factors
To capitalize fully on the potential of wireless patient monitoring, and drive market growth, form
factor, price, and network enablement must be primary design considerations
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Form Factor &
Design
Price &
Convenience
Network
Enablement
Consumer and medical convergence requires simple, consumer-friendly
sensors and UIs
- Must meet high medical standards, but utility and clinical effectiveness
not sufficient
Comfortable, fashionable, wearable, and unobtrusive design essential
- Adoption and sustained engagement requires seamless fit into daily life
The data generated by wearable, low-cost sensor devices and disposables
will drive a growing market for data interpretation software and services
Low energy wireless communications technologies using mobile body area
network spectrum will need to adapt to interoperable standards as they
emerge
Miniatur-
ization
Integration &
Interoperability
Scale &
Commodit-
ization
Key Trends
Wearable Sensor Perspectives
VALAMONT
EXAMPLE: ClickMedix Mobile eHealth Platform
Wearable Sensor Perspectives
6
Mobile care protocols enable field caregivers to provide first line diagnoses and connects specialists
to patients and caregivers remotely
VALAMONT
EXAMPLE: Acute Care & Post-Discharge Patient Monitoring Opportunity
Wearable Sensor Perspectives
7
Acute Care Patient Monitoring Opportunity
In-Patient Hospital
Emergency Department
& Transport
Recently Discharged Chronic Disease Home
1 2 3 4
Multi-billion dollar growth opportunity for remote patient monitoring telehealth:
- InMedica predicts will be applied to 1.8 million patients worldwide by 2017, versus 308,000 today
- Majority of revenue from software/services
Innovations in consumer healthcare will drive growth in the monitoring of high cost patient
VALAMONT
EXAMPLE: MC10 Flexible Wearable Patch Sensors
Wearable Sensor Perspectives
8
Stretchable epidermal sensor technology that conforms to the body's complex shapes -
developing multiple applications for patient monitoring.
Multiple applications in development in sports, fitness, and medical markets.
Received investment from major firms.
MC10 Mission: Reshape rigid, conventional electronics into thin, flexible devices that can
stretch, bend and twist seamlessly with our bodies and the natural world.
Comfortable, disposable wearable sensors enable a breadth of biometric monitoring applications
VALAMONT
Mobile Apps: A Wide Range of Business Models are Emerging
Wearable Sensor Perspectives
9
Physicians pay to download a premium version of the EPOCRATES RX app to their
smartphones (6% of total revenue)
Drug companies pay EPOCRATES for marketing access to physicians using the EPOCRATES
RX app (over 90% of revenue)
Physicians prescribe CardioNets mobile arrhythmia diagnostic service to patients to save both
parties time to make an accurate diagnosis
Insurers reimburse CardioNet on a pre-negotiated rate for each prescription
Healthcare providers license WellDocs mobile disease management software to proactively
manage patients with diabetes
Healthcare providers and insurers can outsource their DM program to WellDoc
Clinical Research Organizations pay to use WellDocs applications to manage patients in
various clinical trials
Consumers pay directly to Independa for drug reminder services
Institutional and long-term care providers license Independas platform, accessories, and
software for managing fragile seniors
Providers and home health agencies pay AirStrip to access their mobile patient monitoring apps
Apps are utilized by physicians and nurses both in and out of the hospital
VALAMONT
Wellness & Disease Management Apps
Fitness, Nutrition, Weight, Body Composition
Stress, Sleep and Mood
Diabetes Management
Cardiovascular Measures
Etc.
Mobile Health Tools & Services
Telehealth Consultations
Remote Patient Monitoring
Caregiver Tools
Connected Home
Personal Emergency Response
Appointment Reminders
Medication Reminders: Adherence
Healthcare/Benefit Financial Planning
mHealthApp Developers
Wearable Sensor Perspectives
10
Samsung and Apple are vying to be the leading digital health and wellness integrators
HealthBook
S Health
VALAMONT
Hurdles to Achieving Real Outcomes from Digital Health and Wellness Applications
Wearable Sensor Perspectives
Early adopters and adherent users typically have the least to gain from the products
- Those who have the most to gain tend to adopt late and adhere poorly
Applications can only improve outcomes while the user is actively engaged in their use
- Most users disengage, drop out within 3-6 months (~25% single use; only ~25% >10 uses)
- People who benefit most from high touch approach are least likely to seek it out
Meaningful data interpretation with adaptive feedback that motivates sustained behavioral change
- Raw data read-outs (weight, body fat, heart rate, etc.) not engaging or motivational
Regulatory and reimbursement paradigms required to capture value of improved health outcomes
- Insurer reimbursement best way to capture full economic value, but requires investment to
collective evidence to support claims
The most successful digital health and wellness applications will:
- Passively & unobtrusively capture data with little effort by user
- Provide multiple levels of engagement, such as gamified reward systems, adaptive automated in-app
feedback, caretaker/clinician prompts for active communications and social network engagement
- Demonstrate an ability to sustain engagement and active use beyond initial period
- Demonstrate improved outcomes or risk reduction on meaningful health measures
Broad
Adoption
Motivate
Behaviors
Sustain
Engagement
Measurable
Benefits
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VALAMONT ADVISORS, LLC
Science Driven Strategy Design
300 Technology Square, Suite 802, Cambridge, MA 02139
Technology
Grow
We enable your technologies to achieve their full potential,
your products to have the widest benefit and
your franchises to deliver maximum value.
We deploy scientific and market knowledge with
broad strategy expertise and tailored analytics
to translate innovative technologies into novel products
that restore and enhance health.