Asia HealthTech Investments by Julien de Salaberry (30 June 2015)
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The document discusses the disruption in healthcare caused by healthtech innovations in Asia, highlighting the role of data, biosensors, mobile devices, reverse innovation, and 3D printing as key drivers. It emphasizes the shift towards a new healthcare paradigm that can leverage technology to address infrastructure limitations in developing markets, leading to increased investment in digital health. The emerging healthtech landscape includes thriving startups focused on consumer engagement, navigation of healthcare systems, and patient engagement, with significant venture capital funding trends indicating robust growth in the sector.
Asia HealthTech Investments by Julien de Salaberry (30 June 2015)
- 1. MEDTECH CONNECT Ÿ HealthTech Asia Investment Insights 30th June 2015 Ÿ Singapore Ÿ The Propell Group INVESTMENT Asia HealthTech @enquirepropell #HealthTech
- 2. ©2015 by The Propell Group - All rights reserved. Proprietary and Confidential. • HealthTech innovation is disrupting healthcare and its established players • Technology is driving a new paradigm to create better health care • Developing markets can leapfrog their healthcare infrastructure limitations • New opportunities are opening to shape the new paradigm Healthcare is changing dramatically
- 3. ©2015 by The Propell Group - All rights reserved. Proprietary and Confidential. • Data • BioSensors • Mobile Devices • Frugal / Reverse Innovation • 3D Printing 5 Key Drivers of HealthTech in Asia
- 4. ©2015 by The Propell Group - All rights reserved. Proprietary and Confidential. Data: Changing Healthcare Genomics Next generation sequencing, data management & analysis Data Analytics Data Analytics & Insights: working with and mixing data sets Public Awareness Planning and Preventing: Using data to reduce and prevent disease Support Providers Clinical and Non-clinical Intelligence: Combining a greater variety of data Digital Therapeutics Patient Focused: Increase variety and frequency of data Health Eco-system Collaboration: Pooling data from many sources for bigger & better results
- 5. ©2015 by The Propell Group - All rights reserved. Proprietary and Confidential. Biosensing Wearables: Creating Context Activity Trackers e.g. Fitbit, Misfit Smart Watches e.g. Garmin, Apple Smart Clothing e.g. Athos Patches & Tattoos e.g. Zio, MC10 Ingestibles & Smart Implants e.g. Proteus BioSensors Devices that convert a biological element into a signal output Wearables Are on- or in-body devices that enable user experience
- 6. ©2015 by The Propell Group - All rights reserved. Proprietary and Confidential. Mobile Devices in Asia: Reaching Everyone Source: Kleiner Perkins Caufield Byers
- 7. ©2015 by The Propell Group - All rights reserved. Proprietary and Confidential. Micro sensor for long-term monitoring of cardiac rhythms Single-channel ECG recorder that is portable, easy to use and low cost (FDA approved) • Being rolled out across Apollo hospitals in India Sophisticated physical exam: tracks & trends vitals such as to, HR, VO2, ECG, BP Flow monitor for safe and accurate infusion • Y Combinator Accelerator graduate Reverse Innovation: MedTech For All
- 8. ©2015 by The Propell Group - All rights reserved. Proprietary and Confidential. LOW COST PROSTHETICS Researchers at the University of Toronto, in collaboration with Autodesk Research and CBM Canada, used 3D printing to quickly produce cheap and easily customizable prosthetic sockets for patients in the developing world TAILOR MADE SENSORS Researchers have used scans of animal hearts to create printed models, and then added stretchy electronics on top of those models. The material can be wrapped around the real heart and enhanced the electronics with multiple sensors 3D Printing: Next Generation MedTech BONE Professor Susmita Bose of Washington State University modified a 3D printer to bind chemicals to a ceramic powder creating intricate ceramic scaffolds that promote the growth of the bone in any shape HEART VALVES Jonathan Butcher of Cornell University has printed a heart valve that will soon be tested in sheep. He used a combination of cells and biomaterials to control the valve’s stiffness MEDICAL EQUIPMENT Dutch surgeons replaced the entire top of a 22 year–old woman’s skull with a customized printed implant made from plastic SKIN James Yoo at the Wake Forest School of Medicine in the US has developed a printer that can print skin straight onto the wounds of burn victims.
- 9. “Investments in digital health are having a positive impact and the momentum is likely to continue and cause changes throughout the entire healthcare ecosystem. In particular, the pharmaceutical industry is poised to take advantage of digital and mobile innovation allowing them to “go beyond the pill” — Jack Young — Head – Qualcomm Life Fund Funding TRENDS
- 10. ©2015 by The Propell Group - All rights reserved. Proprietary and Confidential. • Key investment themes taking shape • Venture capital funding doubled again • Growing number of technology and strategic investors • M&A deal flow growing • Strong IPO trend • 10,000+ DH startups across the globe Significant activity in HealthTech funding
- 11. ©2015 by The Propell Group - All rights reserved. Proprietary and Confidential. Venture funding of HealthTech: Growth outpaces other healthcare sectors Health Sector Funding Changes Based on total funding from 2012 and 2013 2013 vs 2012 2014 vs 2013 All Sectors Health Tech Med DevicesBiotech 9% 61% 29% 127% 10% 29% -17% 21%
- 12. ©2015 by The Propell Group - All rights reserved. Proprietary and Confidential. Venture funding of HealthTech: Key global trends Top Trends of HealthTech Funding 2011 to 2014 Ranking 2011 2012 2013 2014 1 Healthcare Consumer Engagement Healthcare Consumer Engagement EHR & Clinical Workflow Analytics & Big Data Data aggregation & analysis to support a wide range of healthcare use cases 2 Analytics & Big Data EHR & Clinical Workflow Analytics & Big Data Healthcare Consumer Engagement Consumer tools for the purchasing of healthcare services or health insurance 3 Digital Dx Personal Health Tools & Tracking Digital Medical Devices Digital Medical Devices Software / hardware designed to treat a specific disease or condition 4 EHR & Clinical Workflow Care Coordination Population Health Management Telemedicine Delivery of healthcare services through virtual channels 5 Post-acute Solutions Wearables & Biosensing Wearables & Biosensing Personal Medicine Software to support the practice of medicine customised to an individual’s genetics 6 Hospital Administration Telemedicine Healthcare Consumer Engagement Population Health Management Platforms for managing population health under the shift to risk-based payment models
- 13. ©2015 by The Propell Group - All rights reserved. Proprietary and Confidential. Acquisitions: Is this the start of the HealthTech sector maturing? 95 M&A Deals in 2014 - $20B ACQUIRER TARGET Flatiron Health Altos Solutions Teladoc AmeriDoc Evidera Archimedes Optum Audax Roche Bina Technologies MDLive Breakthrough Hearst Health CareinSync Cambia Health ClarusHealth Merck eCardio Google Lift Labs UnitedHealth Group MedSynergies WellTok MindBloom HCA PatientKeeper Facebook ProtoGeo (Moves) AirStrip Wireless Sense4Baby MyFitnessPal Sessions WebMD TheraSim Covidien Zephyr Technologies Sector # of M&A deals Health Tech Med Device Payer Biopharma Provider Other Healthcare Tech Other 47 8 6 6 4 4 7 13 ACQUIRER TARGET VALUE BD CareFusion $12.2B Cognizant TriZetto $2.7B Cerner Siemens Health $1.3B Optum Alere $600M Aetna bswift $400M Brighton Health Privia $400M GE API Healthcare $340M Emdeon Change Healthcare $185M Medtronic Corventis $150M Astra Zeneca Definiens $150M Intel Basis $100M Everyday Health Medico.com $100M Millenium Labs RxAnte $70M St Jude Medical CardioMEMS $60M Care.com Citrus Lane $49M Advisory Board Co. HealthPost $25M Weight Watchers Wello $9M Premier Meddius $8M DISCLOSED UNDISCLOSED
- 14. “For all emerging markets, the conditions are very challenging. But where we see challenges, I see opportunity. In fact: our challenges are your opportunities ” — Joko Widodo — President, Indonesia Asia PARADOXES
- 15. ©2015 by The Propell Group - All rights reserved. Proprietary and Confidential. Asia Paradoxes: Infrastructure Immature Healthcare Infrastructure Health expenditure (%GDP) Health expenditure (per capita US$) Nurses (per ‘000 population) Doctors (per’000 population) 3.5% 3.9% 4.6% 4.9% 9.0% 9.9% 11.0% 11.4% 16.9% Kenya FranceBangla- desh India USJapan UKChina Ger- many 19.50 44.10 44.50 164.50 3,445.90 3,590.80 4,524.10 4,973.10 7,830.10 FranceGer- many JapanUKChinaIndiaKenyaBangla- desh US 0.1 1.1 1.1 1.3 7.9 8.0 8.1 9.3 11.4 Ger- many JapanUSUKFranceIndiaKenyaChinaBangla- desh 0.1 0.3 0.6 1.6 2.2 2.3 3.0 3.5 6.8 Ger- many FranceUSUKJapanChinaIndiaBangla- desh Kenya Source: World Health Organisation, Espicom
- 16. ©2015 by The Propell Group - All rights reserved. Proprietary and Confidential. Asia Paradoxes: Medical Needs Large Unmet Medical Needs Cardio Vascular Disease (Deaths per 100,000) Diabetes Disease (Deaths per 100,000) Lung Cancer Disease (Death per 100,000) RTAs (Death per 100,000) Indonesia AustraliaS.Korea China USIndia BangladeshSingapore France Source: World Health Organisation, 34.7 79.7 82.4 150.8 165.8 203.7 29.2 60.3 68.8 80.5 UK Bangladesh FranceSingapore China USIndia IndonesiaS.Korea UK 10.8 13.4 23 23.8 23.8 29.5 5 8.1 9.9 15.2 Australia S.Korea FranceIndia Bangladesh USSingapore ChinaIndonesia Australia 6.5 20.3 20.5 27.3 27.5 33.5 18.2 29.6 31 35.4 UK India FranceSingapore S.Korea USChina IndonesiaBangladesh UK 5.3 13.7 16.4 18.7 20.8 22.6 4.8 6.6 6.8 13.9 Australia
- 17. ©2015 by The Propell Group - All rights reserved. Proprietary and Confidential. Asia Paradoxes: Income Diamond Deeper Market Relevance From skimming to penetrating the market Premium Market Segment Value Market Segment Underserved Market Segment 56% 30% 13% 1%
- 18. ©2015 by The Propell Group - All rights reserved. Proprietary and Confidential. • Lifestyle and wellness apps driven by growing middle class affluence • Infrastructure management and modernisation • Chronic disease management driven by growing health awareness • Reverse innovation enabling better care at an affordable price point • Growing demand for senior healthcare products and services Asia: Key Drivers
- 19. ©2015 by The Propell Group - All rights reserved. Proprietary and Confidential. HealthTech: Asia HealthTech Startup Landscape Nascent But Thriving Ecosystem Note: WIP! Source: Health Startups Asia! HealthTech Startup Categories Big Data & Analytics 3% Genomics & Precision Medicine 2% Consumer Health & Wellness 18% Navigating the Healthcare System 19% Patient Engagement 23% Practice Engagement 16% Sensors & Diagnostics 15% Telehealth & Remote Monitoring 4% HealthTech Startup Geographies Australia 5% Indonesia 3% Singapore 7% Malaysia 1% Hong Kong 3% India 29% Philipines 2% Vietnam 1% China 43% South Korea 1% Thailand 1% Japan 3% Taiwan 1%
- 20. ©2015 by The Propell Group - All rights reserved. Proprietary and Confidential. Venture funding of HealthTech: Asia Key Trends Noteworthy Asia HealthTech Funding Rounds Target Category Funding Size ($M) & Stage Principal Investor(s) Meet You (CH) Consumer Health & Wellness 35.0 Series C • Matrix Partners • K2 Partners Practo (INDIA) Navigating The Healthcare System 30.0 Series B • Sequoia Capital PICOOC (CH) Sensors & Diagnostics 25.0 Series B • Tencent • Gobi Partners 1MG (pka HealthKartPlus) (INDIA) Navigating The Healthcare System 20.0 Series B • Sequoia Capital • Intel Capital DocDoc (SG) Navigating The Healthcare System 8.5 Series A • Jungle Ventures • SparkLabs Target Category Funding Size ($M) & Stage Principal Investor(s) ConnexionsAsia (SG) Consumer Health & Wellness 8.0 Series A • NorthStar Investments • BioVeda Reka Health (SG) Sensors & Diagnostics 4.0 Series A • Tembusu Partners Our Health Mate (SG) Navigating The Healthcare System 1.0 Seed / Pre A • LeoTech Healint (SG) Patient Engagement 1.0 Seed / Pre A • WaveMaker • GREE Ventures mClinica (PH) Patient Engagement 1.0 Seed / Pre A • KickStart Ventures • 500Startups Note: WIP! Source: Health Startups Asia!
- 21. ©2015 by The Propell Group - All rights reserved. Proprietary and Confidential. Asia Healthcare Accelerator Landscape Most Asia accelerators have a broad sector focus Next 12 months will likely see the launch of additional healthtech focused accelerators • There are 100+ incubators & accelerators across Asia – virtually none are 100% focused on healthtech • Growing maturity of the ecosystem vs. 115 healthtech accelerators worldwide (87 in the US) • Putting Asia / Singapore on the map • Emergence of corporate incubators with a healthtech focus Incubator! Accelerator! Focused! Broad! Clearbridge Accelerator (SG)! AIA ! (HK)! MetLife (SG)! Independent! Captive! JFDI Asia (SG)! BioFactory (SG)! SPRING SSA MedTech (SG)1! SparkLabs (KR)! rockstart! (SG)! Modern Ageing! (SG)3! Muru D! (SG)! Other Asia Accelerators2! Note 1: Zicom MedTacc and Med Tech Alliance, together with SPRING Singapore will co-invest S$60 million to develop promising medical technology ventures! Note 2: A number of accelerators exist in Asia e.g. GSF India which operate on a similar model to JFDI Asia but have no deliberate focus on healthtech! Note 3: Modern Ageing is a pre-Accelerator! EVA ! (IN)!
- 22. • HealthTech is disrupting healthcare and its stakeholders • Technology is driving a new paradigm to create better healthcare • Asia healthcare will be able to leapfrog its infrastructure limitations • New opportunities are opening to shape the new paradigm • What healthtech solution could you hack? Healthcare is changing dramatically
- 23. Julien de SALABERRY Experienced regional head and GM. 15+ years in healthcare with leading brands including Eli Lilly, Boston Scientific, Baxter, GSK, Merck & Co. Significant Asia Pacific Experience. The Propell Group is a boutique venture investor and adviser firm focused on early stage companies in healthcare technology Co-Author of iDisrupted Founder & CIO Ÿ The Propell Group M: +65 9488 7334 Ÿ [email protected] @enquirepropell