Source: World Health Organization
America, best in the world at baseball, hot dogs, apple pie… and healthcare spending. Americans have spent a whopping $30.1 trillion in fact, from 1996 to 2013. Very little has been known until now about what issues have been the driving forces of such massive sums, but a recent study reported in JAMA finds that just 20 medical conditions account for over half of all spending. At the top of that list: diabetes, heart disease, and back pain. Here’s InsightCity’s recommendation: after spending $277.1 billion in 2013 alone, Americans may want to focus a bit more on the baseball and a bit less on the hot dogs and apple pie.
Last week, medical device manufacturing company, Medtronic, and wearable tech company, Fitbit, announced plans to merge health and activity tracking for people with diabetes. By tracking activity levels and glucose levels together, patients and their doctors can get a better view of how exercise impacts their glucose levels. People with Type 2 diabetes won’t have to carry around sheets of paper, manually log their blood sugar levels, remember (or misremember) exercise details and outcomes. Anything that reduces pain—physical or mental—will be welcomed by those with diabetes. In our humble opinion, the migration from consumer activity monitoring to real healthcare is an enormous leap for consumer wearables.
Remember a couple of years ago when Sanofi partnered with MannKind because they believed Afrezza, MannKind’s inhaled insulin product, would capture diabetes patients who hate injections? And remember when Sanofi paid MannKind $150m up front and loaned them an additional $175m? Well, the sales didn’t materialize and Sanofi would like to pretend it never happened. So much so, in fact, they’re willing to forgive the balance of the loan—over $70m! I wonder if Sanofi needs a good news/blog writer? Then Sanofi could break up with the writer and then pay off the writer’s mortgage or something. Shares for MannKind were trading up at the time of this article. But then again, so would mine. Just sayin’.
Sanofi and Verily (Google Life Sciences) are the latest pharma/tech partnership in what’s being called the “Internet of Medical Things” (IoMT). Their joint venture, Onduo, will combine Sanofi’s experience in diabetes treatment with Verily’s reputation for consumer software, analytics, and miniature electronics. The IoMT market was $32.4 billion in 2015, but is projected to reach $163.2 billion by 2020. Other pharma/tech partnerships include: Pfizer and IBM teaming up to collect data from Parkinson’s patients, Novartis and Qualcomm collaborating on biometrics, and a host of other joint ventures related to smart pill bottles, smart inhalers, etc. The first Onduo products (TBD on specifics) are expected to launch in 2018.