mHealth Israel_Levi Shapirosrael digital health overview
Download as PPTX, PDF1 like777 views
This document provides an overview of the Israeli digital health sector, including statistics on funding and deals. It notes that Israel has experience in relevant technologies like sensors, algorithms, encrypted communications and cloud computing. The healthcare system has mandated electronic medical records for 22 years. Israeli digital health startups are mostly early-stage, with limited revenue generation so far. Funding of startups in this sector has increased dramatically since 2009. The document concludes with tips for digital health startups, such as quantifying the value proposition to attract funding from pharmaceutical companies seeking to enter digital health.
mHealth Israel_Levi Shapirosrael digital health overview
- 1. mHealth Israel: Israeli Digital Health Overview Levi Shapiro Partner Veritas Digital Health Fund
- 2. Healthcare Spending in the US
- 3. Health Spending in Era of Payment Reform
- 4. Fragmentation is GREAT for Startups
- 5. Obamacare States See Increase in Efficiency
- 6. Health IT Funding & Deals
- 7. Investment +987% since 2009; 91% YoY
- 8. Deals: Digital Health vs. Biotech / Pharma
- 9. Emphasis on Diagnosis, Monitoring, Protection Frost& Sullivan, 2014
- 10. Confidential 10 • Mandatory EMRs for 22 years • Israel leads in relevant technologies: • Sensors • Algorithms • Encrypted communications • Cloud • Personalized medicine • Chronic disease management tools • Inter-Operability IT Can Israel Lead HIT Innovation?
- 11. Israeli Digital Health Startups by Stage Source: DFJ Tamir Fishman, 2013
- 12. Israeli Digital Health Startups = Limited Revenue Source: Levi Shapiro / IVC, 2014
- 13. Funding of Israeli Digital Health Startups Source: Levi Shapiro / IVC, 2014
- 14. # Israeli Digital Health Startups, 2005-2014 Source: Levi Shapiro / IVC, 2014
- 15. What Does This Mean for Startups? 15
- 16. Tip 1: Play Nice with Partners
- 17. Opternative: Online Eye Exam Referral tool to drive visits to local optometrists and opthomologists Case Study Raised $2 Million Fifteen full time employees Launched product in 2014 Company Highlights People world-wide who receive an eye exam each year 2.4 BILLION 75 PERCENT Savings when using Opternative over an in-person exam People world-wide need exams but cannot afford or access care 700 MILLIONBusiness Model
- 18. Tip 2: Quantify the Value Proposition (Pilots) - Pilot program with Newton Wellesley Hospital - Collected and shared information that helped win NWH as reference customer - Validation from NWH enabled new client wins EarlySense Uses signal-processing technology to provide a contact-free and early detection patient supervision system Case Study Raised $28 Million in funding Sixty full time employees Profitable from operations Company Highlights
- 19. 19 Contents are proprietary and confidential. Tip 2: Quantify the Value Proposition (Savings) Helps organizations and physicians actively manage contracts and reduce regulatory risk. A mobile app engages physicians to record work, while a back-end portal provides support across the organization Ludi ensures hospitals manage physician-hospital agreements so the expectations of the agreement are fulfilled and regulatory risks are decreased Case Study Raised $1.1 Million in funding Four full time employees Company Highlights Average law suit cost due to inadequate documentation of physician contracts $19 MILLION 70 PERCENT Organizations requiring physicians to log their time Organizations using formal contracts for medical directorships 77 PERCENT
- 20. 20 Contents are proprietary and confidential. Tip 2: Quantify the Value Proposition (Efficiency) Doctor’s offices can identify scheduled patients who are at-risk for not showing up to their appointments and intelligently schedule additional appointments SmartScheduling Brings an airline load scheduling approach toward doctors visits Case Study Revenue positive Chosen for athenahealth’s internal accelerator program Utilized in over 30 physician offices Company Highlights Doctors currently overbook their schedules in an effort to balance no-show patients 1 IN 2 $19 MILLION Reduced revenue per clinic due to patients missing appointments Average no-show rate for outpatient clinics 20 PERCENT
- 21. Tip 3: Follow the Money- Pharma Struggles with Digital
- 22. Ann. Date Target Acquiror CE Mark FDA Approval Transaction Value LTM Revenues TEV / NTM Revenue % Up-front 07/14/14 ~200 NA NA 100.0% 06/30/14 375 NA NA 100.0% 05/27/14 ~305 55 NA ~75.0% 04/02/14 320 80 NA 100.0% 12/04/13 193 49 NA 100.0% 05/23/13 Targeted Therapies Business Unit 200 48 3.5 100.0% 10/23/12 165 NA NA 84.8% 04/05/12 321 68 3.6 100.0% 03/19/12 314 30 10.0 84.1% 11/21/11 413 NA NA 81.8% 11/09/11 313 82 2.8 100.0% 07/27/11 293 NA NA 100.0% 07/07/11 452 65 7.0 100.0% 09/20/10 444 0 NA 43.6% 07/12/10 433 94 3.8 100.0% 06/16/10 335 54 5.0 100.0% 05/05/10 210 56 3.0 100.0% 12/16/09 785 100 NA 100.0% 11/09/09 489 117 NA 100.0% 10/26/09 200 NA NA 65.5% 09/28/09 267 100 1.9 100.0% Mean: $340 $67 4.2x 91.8% Median: $314 $65 3.5x 100.0% Tip 4: Sell The Dream Pre-FDA Approval M&A Transactions Source: Capital IQ. (1) $40 million equity investment and has the option to acquire Spinal Modulation for up to $300 million plus certain revenue-based milestones following U.S. commercialization (2) Includes $150 million potential CVR upon FDA approval. Does not include $1,050 million of potential CVR payments in six years post-approval. Revenue multiples only reflect $150 million in upfront payment. ($Millions) Post-FDA Approval M&A Transactions