Aug 13, 2024

Insights from LSI Europe ‘23: The Convergence of Medtech, Biotech, & Digital, & What it Means for the Future of the Industry

Insights from LSI Europe ‘23: The Convergence of Medtech, Biotech, & Digital, & What it Means for the Future of the Industry

LSI Europe ‘23 featured a panel of industry leaders that illuminated the dynamic intersection of medtech, biotech, and digital health, highlighting their combined impact on the healthcare industry. Discussions focused on chronic disease management, the challenges of monetizing digital health, the evolution of digital health companies, data ownership, and the integration of tech and biotech solutions. Here are six key takeaways from our analysts’ review of the panel.

Focus on Chronic Disease Management

Chronic disease management emerged as a crucial area where digital health can significantly contribute due to its substantial impact on healthcare costs. Joe Mullings emphasized, "The sector I think we could have the most impact on is chronic disease management. I think that's where digital has its best opportunity to enter the medtech space in an actionable way. When we think about chronic disease, 18% of our GDP is spent on managing that in this country, and 80% of that 18% is the management of chronic disease." 

Challenges in Monetizing Digital Health

Despite the promise of digital health technologies, many companies face significant challenges in establishing sustainable business models, particularly in terms of payment and reimbursement. Joe Mullings pointed out, "They're fantastic sounding, but nobody's really figured out how to get paid for them yet. Most digital companies have not figured out who will pay that bill. Therefore, the adoption is tough." 

Evolution of Digital Health Companies

Digital health companies often follow a predictable pathway. Bill Hunter explained, "Digital health companies begin as patient monitoring companies, become diagnostic companies, and evolve into patient management companies." He noted, "At the end of the day, you get paid for outcomes, and data is not outcomes. It's applied data—that's outcomes." This evolution underscores the blueprint that can lead to a successful company making a tangible impact on outcomes – and getting paid for it.

Ownership and Utility of Data

A significant point of debate amongst the innovators and medical device investors was who should own and manage healthcare data. Joe Mullings argued, "The data should belong to the patient, right? It's their condition, their thing to manage, and having a say in who and how they sell, give, manage that data will be really important." Shobha Parthasarathi added, "If the individual does hold on to the data, it's really of no use to society as a whole, right? The data becomes useful when it's looked at in a global sense." This ongoing debate highlights the need for a balanced approach to data ownership that benefits both individuals and the broader healthcare system.

Integration of Tech and Biotech

The integration of technology and biotechnology is essential for developing comprehensive healthcare solutions. This integrated approach is becoming more prevalent among new biotech companies, incorporating device and data considerations from the outset. Shobha Parthasarathi noted, "The new biotechs that are coming out are much more integrated right from the start in their thinking. As they develop the therapeutic, they’re thinking about what device they can use to deliver and what data they will integrate into their regulatory pathway." Ashley Seehusen shared her excitement about the future, stating, "Some of the most exciting wearables I've seen are those that have some tack but have really well-thought-out back-end systems. That's the stuff that's getting me excited."

Future of Data Aggregation and Ownership

There is ongoing speculation about who will eventually own the aggregated data from patient monitoring. Some believe it could be third-party entities, private companies, or government organizations. Bill Hunter suggested, "If the patient owns the data, he who owns the patient wins. It's going to be the payors because, ultimately, payors own the patient." David Zakariaie predicted, "In the short term, in the next 5-10 years, it will be the device companies. At some point, there will be enough of a critical mass where we'll want to aggregate all that data that some third-party entity will form."

Full Discussion and More Insights

The full panel discussion was published on LSI’s website, and can be found at the link below:

To hear more insightful panel discussions on the global medtech market like this, join us at the LSI Europe ‘24 medtech conference in Sintra, Portugal while registration is still open.

 

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