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Pharma Investment in Digital Health: Strategies for success (2016)

November 2016


Successfully Investing in Digital Health: a Guide for Pharma

It’s a strategic imperative for pharma to use its market position and money to shape and control the rapidly growing digital health space.Internal investment in digital health technology may be too little and acquisitions of established players could be too late and costly.

The operational benefits of digital health in terms of clinical trials, patient engagement, real world data and efficient workflow processes must be realised early. It’s time for pharma to step up to the plate. But when is a deal a good deal? Which funding model is optimal and in what circumstances? What are the attributes of an ideal startup investment partner?

For answers to these critical questions look no further than Pharma Investment in Digital Health: Strategies for success. The report reviews the latest 2016 deals and through expert insight identifies the critical strategic and tactical issues pharma must address if digital health investment is to bring both operational advantage and commercial ROI.

Key Features

  • Unique and in-depth interviews with senior US and EU industry and investment executives who are spearheading this area of expansion
  • Review of notable deals and the US$3.9 billion digital health investment landscape in 1H 2016
  • Tables identifying “must haves” and danger areas for a successful investment partnership
  • Illustrations of digital health deals and case studies such as GE Ventures’ collaboration with digital health incubator StartUp Health 
  • At-a-glance summaries of all the main conclusions and action points

Key Benefits

  • Understand why pharma’s investment in digital health technology is critical 
  • Know in what areas pharma is investing its money
  • Evaluate how and when Partnerships, Joint Ventures, Startup Accelerators, Venture Capital and Corporate Venture Capital should be the investment vehicle of choice
  • Identify the key attributes of an ideal investment partner and the creative team behind it
  • Develop a cohesive strategy and management team around investing in digital health

Key Questions Answered By This Report:

  • Core Competence: Why is pharma’s investment in digital health so strategically important?
  • Fast Growth: There have been 231 deals worth US$3.9 billion in the first half of 2016 – which sectors are attracting most investor interest and what can you learn? 
  • Successful Startup: What are the key investment criteria pharma should look for in a startup company?
  • Which Structure? Partnerships, Joint Ventures, Startup Accelerators, Venture Capital and Corporate Venture Capital. Which investment vehicles are right for your business and why?
  • Merck: Why is the Merck Global Health Innovation Fund considered to be a market leader in pharma corporate venturing in digital health? 
  • Targeted Approach: Which digital health technologies should pharma invest in?
  • Resources: What organisational changes are needed if pharma is to recruit and build a successful investment teams?

Expert Views

  • Brett Davis, General Manager for ConvergeHEALTH by Deloitte, Deloitte Consulting, US
  • Ricardo dos Santos, Director, 4iNNO, US
  • Kristian Hart-Hansen, CEO, LEO Innovation Lab, Denmark
  • Ulrich Muehlner, Founder & Managing Director, GrowthCube Partners LLC, Switzerland
  • Tony Romito, Managing Director, Accenture Life Sciences, US
  • Steve Seuntjens, Partner, PHS Fund, Netherlands
  • Ruchita Sinha, Director, GE Ventures, Healthcare, US
  • Marc Sluijs, Digital Health Investment Advisor, Switzerland

Who will benefit from this report?

  • Pharma’s investment venture capital fund executives building or managing digital investment portfolios
  • Senior corporate finance managers who determine strategy and investment fund resources
  • Operational marketing, medical affairs and clinical research managers needing funding to drive change with digital health technology 
  • Entrepreneurs seeking investment and support for their innovative digital health technology
  • Investment managers in finance houses looking for joint venture or deal brokerage opportunities in the digital health space

Content Highlights

  • Overview of venture capital funding and investment in the digital health sector
  • Pharma moves from customer to digital health investor
    • Pharma’s venture capital funding in digital health
    • Pharma’s Joint Ventures with tech companies for Research & Development
    • Mergers & Acquisitions
    • Accelerators: supporting the startup ecosystem
  • Opportunities and challenges in partnering with startups
  • Keys to successful pharma and startup partnerships
    • Finding the right technology startup for investment
    • Advice for entrepreneurs
    • Choosing the right type of investor: pharma corporate VC versus experienced tech company VC
  • Critical needs for investing in digital health
    • Digital health will impact pharma’s core business, new business models are needed
    • Pharma needs data that digital health provides to justify the value of therapies
    • Pharma can leverage digital health to enhance drug treatment and improve behaviour
    • Pharma motivated to compete with tech giants leading digital health
  • The future of pharma investment in digital health technology
    • Regulatory climate for pharma investment in digital health is rapidly evolving
    • Emerging corporate venturing models present new opportunities
    • The future model of venture investment for pharma companies is not yet clear
  • 2017 and beyond