Digital Health Investing: Bull Run Or Boom-And-Bust?
This article was originally published in Start Up
Investors are piling into digital health start-ups, lured by their potential to transform inefficient health systems. Success will come, but selectively.
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Digital health presents both opportunity and threat to Big Pharma. The opportunities lie in streamlining and accelerating R&D and improving patient experience and product outcomes; the threats come from the swath of new competitors vying for a piece of the health care value pie – many with far more experience in consumer-facing services.
Drug pricing and access issues expose the pharmaceutical sector especially acutely to calls for companies to meet ethical and social goals, alongside commercial ones. Digital is up-ending pharma’s processes, its workplaces and its consumers. R&D productivity is spluttering. Amid this turmoil, CEOs highlight company culture – the way an organization behaves – as a crucial ingredient for success. But what is a “right” culture? Organizational culture is neither static nor singular. It is continuously influenced by acquisitions, markets, new technologies and new generations. And pharma’s history suggests that culture change cannot happen without sufficient people change.
ICER’s influence on drug pricing, and policy, is growing. Spotlighting the worst drug price rises is one recent example.