Health IT, Startups

Here are some interesting bedfellows that are seeking to change healthcare or very well could

Amidst the unprecedented dealflow in the digital health last year were a few companies using […]

Amidst the unprecedented dealflow in the digital health last year were a few companies using acquisitions to move in healthcare. Although fitness apparel maker Under Armour was a not a complete stranger to digital health prior to this year, its launch of UA Record and acquisition of MyFitness Pal was an interesting example.

UA’s deal is part of a trend Lisa Suennen, author of Venture Valkyrie, sees as a sign of the times, in an emailed response to a request for comment:

 “I think it’s is a sign of the times as many non health IT companies have surged into the space to expand their story (med device and pharma cos are doing this too) but we are seeing a significant blurring of lines between industries as consumers are increasingly viewed as the prime healthcare target, not just hospitals and doctors. I expect we will find more consumer products and food and transportation companies and others in the digital health acquisition mode and some seemingly odd bedfellows that will become the new normal.”

It got me thinking: what are some examples of some other companies that have acquired their way into healthcare? And what companies could we imagine following this pattern to extend their brand into digital health? Here are some past examples along with some pure speculation.

Intel’s acquisition of Basis Science last year was intended to mark the chipmaker’s big entrance into wearables. The company had used the CES show in January to punctuate its interest in the wearables space and the opportunity it has to compete in the space. Its acquisition of BASIS gives the chipmaker a path forward into the digital health space. The idea is it to have a way to integrate the technology into its own products, and give it a leg up to help move it a bit closer to other technology companies that have been in the digital health space for longer such as Texas Instruments and Qualcomm.

Weight Watchers purchase of Wello gave the weight management program and frozen meal purveyor a way to update its image and give it a foothold in the mobile health app space. Wello is designed as a portable fitness coach that gives users access to a live trainer through their smartphone or mobile device. The weight management company saw it as a way to personalize its services. As MobiHealthNews quoted Wight Watchers CTO Dan Crowe on a conference call around the time of the deal, “We will become a 21st-century technology organization, engineered for the digital era, whose innovative technology fundamentally improves the way people manage their weight, health and wellness. We will be agile service-oriented, data-driven, cloud-enabled and efficient. We will be a model for digital technology in the markets in which we compete and we will be a magnet for talented innovators both, inside and outside the company.”

Potential deals

Food industry makes play for weight loss apps Harry Wang, director of mobile and health research with Parks Associates, sees Under Armour’s move as spurring companies that have been casual observers of digital health integration to take action. “What could [Proctor & Gamble] or Kraft Foods do for their customers who are increasingly using diet/food journal apps and grocery shopping apps? These companies have been on the sideline watching the growth of the consumer health and wellness app business and seeing the wellness apps wreak havoc on traditional weight loss program providers, but also help forward-thinking fitness club operators to retain and attract customers. UA’s move may push these on-the-fence companies to experiment more with digital integration strategy and grab the winners as partners before it is too late.” Moving Wang’s theory further, I could envision Kraft Foods or P&G acquiring Rock Health accelerator grad, Kurbo Health, a digital health startup dedicated to combating childhood obesity. These food giants have the resources to make Kurbo a powerful, well-known platform to educate and help parents better manage their children’s diet and exercise to stem cases of obesity, Type 2 diabetes and other chronic conditions.

Aramark acquires Nutrify The hospital caterer would be likely to value an app that’s predominantly used by hospitals to help patients make intelligent dietary planning decisions when they’re discharged. It takes into account things that a lot of meal planning tools ignore such as the person’s condition, existing dietary restrictions, medication interaction and recovery plan.

Virgin buys Doctor on Demand Given Sir Richard’s demonstrated interest in telemedicine through his Doctor on Demand investment, it’s not that much of a stretch to imagine he’d want to buy out the telemedicine business launched by TV therapist Dr Phil. After all he might do better than some of the other telecommunications companies that have tried to compete in this space. He also has an airline, which means a captive audience who might be up for an interactive health screening at 20,000 feet.

Given that Qualcomm and Novartis have just formed an investment company targeting digital health startups, this seems like a good opportunity to speculate on some of the digital health companies that would fit well with pharma companies beyond the pill interests. Given the interest of Mylan Pharmaceuticals’ Specialty division in life-saving products for allergic reactions, Rescufy should be on its acquisition radar. It’s an app designed to prepare teachers and parents caring for a child who shows signs of a strong allergic reaction. Among other things it instructs them how to administer epinephrine. Most pharma companies view improving medication adherence as a top priority, especially for people with chronic conditions. I could easily imagine  Novartis acquiring smart pill bottle maker AdhereTech, which alerts people when it’s time to take their meds and tracks when drugs are taken could satisfy that need. The company has developed a promising new drug candidate that may cut heart failure deaths. If the drug is approved, an adherence device could be a useful tool to support its roll out.

Sleepy’s buys Beddit The furniture industry is one group that seems like a good candidate to move into digital health and it’s already happening. CES offered some illiusrations of this trend with office furniture maker Humanscale partnering up with StartUp Health company Tome. Sleep Number bedmaker developed smartbeds for adults and children to track sleep patterns. Beddit, a flat sleep tracker designed to fit on top of mattresses, is already in Bed Bath and Beyond. It seems like a natural fit for bed retailers like Sleepy’s to move into this market.

[Photo from Flickr user haley7]

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