Digital health & MedTech: New signals for transformation
MedTech companies are best positioned to lead the transformation in Digital Health thanks to their unique understanding of therapeutics, patients and providers. Growth is being driven by the increasing popularity of digital devices, many of which are already in the hands of consumers. However, without the right digital foundation to support these companies internally, digital insights will be difficult to leverage to create a comprehensive Digital Health solution.
To understand the key challenges facing life sciences professionals when expanding, we interviewed over 30 C-Suite leaders and MedTech senior executives and Pharma in AdvaMed’s Digital Health Center of Excellence. In addition, we surveyed 150 MedTech senior executives globally and analyzed over 100 M&A deals and over 600 product launches. Our surveys and analyses were from a subset of MedTech companies and took place between January 2019 and May 2022.
Approximately 30% of deals within the Medical Device and Digital Health segments are non-traditional, indicating that MedTech is breaking out of its historically conservative reputation and embracing digital innovation.
Digital Health sits at the convergence of medicine and technology. It is governed by a number of different regulatory and legal frameworks and working groups within governing bodies. MedTech executives ranked regulatory uncertainty as a barrier and agreed that it has an impact on their Digital Health agenda. Stakeholders need to be working in regulatory spaces they are less comfortable in—or in some cases work with the regulatory body to develop new guidance.
By understanding the barriers currently facing healthcare, companies will be able to build better strategies. They can create a more effective, affordable and innovative paradigm in which the level of care is not only sustainable but continues to improve across the entire ecosystem.
of respondents agree that future success will depend on companies targeting the entire care pathway rather than specific products and services.
of MedTech executives expect expanding care settings and models to significantly reorient their firm’s long-term strategy and change business models.
of deals within Med Device & Digital Health (2017-2021) are non-traditional.
MedTech offers value through accessibility, critical insights for both patients and physicians, and, very likely, improved costs. As companies become more outcome-oriented through digital adoption, reimbursement models need to shift to incentivize healthcare stakeholders to pursue more digital health solutions to ease barriers and support the consumer patient.