This article has been written by Adriano Fontanari, Business Analyst Intern @ Nina Capital
This year there has been one of the hottest summers ever since in the digital health scene, with Livongo and Health Catalyst that went public. We have to look back three years to find the last Initial Public Offering (IPO) of a Digital Health company (iRhythm). VC-Backed investments in this field are growing year over year ($8,1 B in 2018, according to RockHealth).
Is this the sign that the market is mature?
Livongo provides disease management tools for people that suffer from a chronic disease. One of the key strengths of the company is to combine a digital platform + connection with healthcare professionals + devices in a one-stop solution. Livongo’s platform targets multiple conditions:
• Diabetes: connecting blood glucose meter, test strips, personalized insights, 24/7 expert support, shareable reports, custom alerts
• Weight Management: connecting smart scale, automatic weight and steps tracking, healthy habits challenges, expert coaching
• Hypertension: connecting blood pressure monitor, personalized insights, shareable reports, expert coaching
• Diabetes Prevention: connecting smart scale, automatic tracking for weight and steps, CDC-approved lessons, expert coaching
• Behavioral Health: offering support for depression, anxiety, stress, sleep, and more. Interactive programs, tracking tools, dedicated coaches
With 147 Million people in the US with a chronic condition, accounting for 90% of the U.S. healthcare spend, it is paramount to find value-based interventions to manage chronic disease.
Join Frontiers Health to listen to Zane Burke (CEO of Livongo) who will hold a keynote: The Role of Digital Health in Combating the Global Chronic Condition Epidemic
Health Catalyst is a health care data analytics company committed to supporting healthcare providers, extended care facilities, and physician groups to make data-informed decisions to improve clinical and operational performance. Health Catalyst is offering a cloud-based data warehousing platform backed by an AI system powered by more than 100 million patients.
With more than 650 performance improvements across clinical, financial, and operational domains, the Flywheel (Fig. 1) represents how Health Catalyst creates and delivers value to the end customer.
Join Frontiers Health to listen to Sadiqa Mahmood (SVP of Medical Affairs, Health Catalyst) who will hold a speech.
The IPOs of Health Catalyst and Livongo show that the US Digital Health market is ready to welcome new unicorns. While we still have to wait for a company based in Europe to go public the European Digital Health market is nonetheless a fertile ground for investments. The recent round of $550M of Babylon Health that led the company to a valuation of over $2B is just an example.