Hi there,

We recently released our Q3'19 Global Healthcare Report.

With the dust settling on the quarter, we take a quick look at some of the more interesting healthcare investment trends that could spill over into 2020.

Also — under the backdrop of the Google/Fitbit deal — we explore wearable startups that could be future M&A targets.

And finally, did you see all the activity in China healthcare these past two weeks? See below for the recap. 

But first …

Innovation on your mind?

If your 2020 planning has a mandate for innovation and growth, you shouldn’t miss The Collective (Dec. 10-11, NYC). This event will feature 1:1 interviews with Fortune 500 execs discussing their innovation, growth, M&A, and CVC strategies. Speakers include:

• Rajesh Aggarwal, Head of Strategic Development, Jefferson Health
• John Geyer, CEO, MetLife Digital Ventures
• Tobe Cohen, EV, Chief Science, Technology & Innovation Officer, Pharmavite
• Erik Lium, EVP, Mount Sinai Innovation Partners

See the full speaker roster here. 

Interested? Prices go up 11/15. Use the code HealthcareInnovation to get $650 off your ticket price.

Back to the report

In our Global Healthcare Report, we take a data-driven look at global healthcare technology investment trends, top deals, active investors, and corporate activity in Q3'19. We dug into digital health and 7 sub-sectors within the healthcare landscape, including:

• Microbiome
• Women’s health
• Cannabis
• Artificial Intelligence
• Virtual Primary Care
• Pharma Supply Chain
• Digital therapeutics

Wearables M&A?

At a purchase price of $2.1B, Fitbit became Google LLC’s 5th largest acquisition to date, placing it between #4, Looker ($2.6B, 2019), and #6, YouTube ($1.7B, 2006). The acquisition, expected to close in 2020, would immediately give Google a vast installed base of consumer wearables being used in both B2C and B2B2C contexts. 

But it gains a lot more than a fitness tracking business.

It also gets all of the biometric data that Fitbit collected from its tens of millions of active users over the years. This could help could accelerate (and intensify) the tech giant’s foray into healthcare — shifting competitive dynamics within the broader consumer health monitoring market. 

We recently highlighted 7 wearables startups — across wristbands, rings, headbands, and patches — that could become more interesting to strategic acquirers. 

One of those startups is Dreem. Dreem’s headband, worn overnight, uses 6 EEG sensors, a pulse oximeter, and an accelerometer to track brain activity, heart rate, breathing, and movement. 

Clients can read about the other startups we highlighted here: Fitbit Just Got Acquired. These 7 Wearables Startups Could Be Next

China healthcare in the news

We highlighted a number of important deals announced over the past two weeks in China. 

• Ping An Good Doctor bought a $20M stake in Shanghai Hydee Software, a pharmacy ERP software provider, in a bid to bulk up its pharmacy capabilities. The deal came shortly after e-commerce giant Alibaba's $1B investment in a leading clinic as it grows care delivery infrastructure. We highlighted China big techs’ healthcare bets in this report.

• AstraZeneca is raising a $1B fund to invest in Chinese healthcare startups
• Amgen invested $2.7B into BeiGene to co-develop cancer drugs
• Novartis announced building a CHF-patient focused program with Tencent
• Boehringer Ingelheim signed a deal with 7 leading digital health companies to collaborate on chronic disease management. 

• Matrix Partners China, Lily Asia Ventures, and others poured $100M into the device maker Peijia Medical. The Suzhou-based company's TAVR product will hit the market in 2020.

Stay healthy,
Marc Albanese

P.S. Come join us! We're hiring a director of tech research among other positions.

P.P.S. Thank you for your contributions above @joshmark2, @TrialPivot, and @mschlueter13.

[Client Research] Top Investors Fueling The Value-Based Care Ecosystem. Deal activity in value-based care companies is on a record pace. We examine the top investors across the space. Read it here.  

[Client Research] 55+ Startups Using Tech To Transform How We Sleep. From relaxation apps to self-adjusting mattresses, these startups are using tech to help people get a better night's sleep. Read it here.  

[Client Research] Healthcare Business Model Spotlight: 23andMe. We analyzed the D2C genetics company's funding activity, business model, customer acquisition strategy, market size, and competitors. Read it here. 

Lessons From The Failed Chatbot Revolution — And 5 Industries Where The Tech Is Making A Comeback. While many chatbots didn't live up to the hype, industries like fintech, healthcare, and retail are quietly adopting the technology to free up busy professionals’ time and offer guided, personalized experiences to consumers. Read it here.

Gradually, Then Suddenly: How Disruption Comes To Healthcare. Tech’s acceleration into markets is increasing every year — and with the healthcare industry, we’re beginning to see more of its impact than ever before. Read it here. 

News
 

A diabetes win from China biotech. ARCH Venture Partners-backed Hua Medicine announced positive results from its phase III trial for a type-2 diabetes candidate dorzagliatin. Hua Medicine raised $110M from its 2017 Hong Kong Exchange IPO. 

Endpoints News

A gastric cancer algo. The FDA has granted breakthrough designation to Japan’s AI Medical Service algorithm, used to interpret endoscopic images of gastric cancer for potential diagnosis. The company completed its $42.9M Series B raise in October. 

MedCity News

An automated diagnostics partnership. Medopad announced a partnership with J&J’s Janssen to test and commercialize its automated, iPad-based early-stage Alzheimer’s diagnostics tool in China and the UK. The company raised $25M last week in a round led by Bayer. 

Medical Device Network

Deals
 

Megaround for xenotransplant co. eGenesis raised a $100M series B financing led by Fresenius Medical Partners, joined by Bayer and Wellington Partners. eGenesis is developing technology that uses gene-editing to enable kidney transplants from animals to humans. 

eGenesisbio

The digital nurse now speaks Arabic. Nala raised $1M from AlAraby Investment to further the growth and development of its first Arabic virtual triaging tool. 50k+ people have used the tool. 

Business Wire 

Fueling value-based care. Apervita, a firm focuses on quality reporting and value-based contracts, raised $22M from UnitedHealth’s Optum Ventures, Pritzker Group Venture Capital, Baird Capital. 

PR Newswire

Whoops did it again. Wearable startup Whoop raised $55M led by Foundry Group, with participation from Two Sigma Ventures, Accomplice, SVB, and others. The company develops a wearable “strap” to track physiological data and analyze performance.  

VentureBeat

Perspectives

Will cheaper drugs kill innovation? While pharmaceutical companies argue reduced prices would seriously inhibit innovation, the authors note that this same claim has been made before with little impact on new drug discovery.
STAT

The future of reproductive healthcare may be at home. At-home abortion could change the debate around abortion and the future of reproductive care delivery.
The Cut