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Chat Trends Report C O N S U M E R H E A L T H A N D T E C H N O L O G Y CHaT Trends Spring 2016 Circle Square | CHaT Trends | Page 1 CHaT Trends Spring 2016 The ups and downs in CHaT From the editor… Welcome to the Spring 2016 edition of CHaT Trends, Circle Square’s quarterly report on consumer health and technology. Though CHaT Trends is offered for free, we encourage you to check out our corporate subscription services which complement the stories featured in CHaT Trends and which provide a more full-bodied perspective on digital health’s many markets. You can find information on these reports, as well as info about our strategy consulting and business development work on the last page of the report. And now for some highlights from this edition: A big acquisition in wearables amidst market share erosion for the segment leader. Nokia acquired the well-established French startup Withings to go head-to-head with Apple, Under Armour, and segment leader Fitbit, whose dominance is slipping to China’s number one smartphone maker. Interest in health info sites remains high. The IAG-owned About.com launched their first of several new content verticals, a health information site called Verywell.com. Hopefully the site will be easy to navigate, as a new Makovsky study found that usability was more important to health information website users than trustworthiness. Innovations in patient monitoring find the FDA both approving and rejecting. Though Proteus Digital Health raised $50M in new funds, the FDA rejected a new partnership. Sensimed’s connected contact lens had better luck. It was approved. Thanks for reading! Dave Lake, Editor, CHaT Trends Circle Square | CHaT Trends | Page 2 CHaT Trends Spring 2016 Contents Fitness and wellness Care online (cont'd) Nokia enters digital health with $191M Withings purchase Diabetes platforms and tools raise funds, forge Sleep health technologies continue to attract market partnerships interest Forecast: 75% of adults will use PHRs by 2020 Fitbit is number one in wearables but market share is slipping Patient monitoring Empatica Embrace wristband can detect seizures The latest in medication adherence technologies Roundup of headlines in digital health for women Proteus raises $50M, FDA rejects sensor-equipped pill Sensimed receives FDA clearance for connected Health search contact lens Consumers choose ease-of-use over trust on health sites Update on digital respiratory health About.com launches a new health site: Verywell Smartphone virtual assistants are inconsistent in a crisis Innovation Investors continue to support healthcare marketplaces Helix wants to be an app store for DNA Q1 digital health funding on track for record-breaking Care online year Use of alternative health sites is growing amongst Innovations in smart footwear consumers From HIT Trends: Virtual reality innovation in digital Humana’s wellness program lowered employee claims health costs Update on global digital health Innovations in telemental health and bilingual telehealth Funding watch [eGym, Quartet, LifeBeam, Envera, Fe3, CareDox] Ed. Note. Check out the live links to original source documents by Circle Square | CHaT Trends | Page 3 clicking the underlined grey text on the bottom right of each story page. Fitness and Wellness Spring 2016 Nokia enters digital health with $191M Withings purchase With their purchase of the French startup Withings, one of the first manufacturers of digital health devices, Nokia can go head-to-head with Apple, Fitbit, Under Armour BUYS and the other dominant digital health players. Withings had raised $33M in two investment rounds. Nokia’s health platform WellCare, which has been in development for two years, will be the foundation of their new devices. Withings digital health devices include fitness trackers, scales, thermometers, blood-pressure monitors and baby monitors. Nokia, once the world’s biggest cell phone maker, sold it’s phone division to Microsoft in 2014 and has been eyeing new businesses. The company’s profit last year was €1.26 billion. Withings has 200 employees across France, the US, UK, and Hong Kong. No layoffs are expected. Editorial: Nokia’s purchase is the latest in a line of digital health acquisitions by big companies looking to get into the space. Intel acquired Basis in 2014, Adidas purchased Runtastic last year. And in April, electronics company Logitech bought wireless earbud startup Jaybird for $50M. Circle Square | CHaT Trends | Page 4 Source: Engadget Fitness and Wellness Spring 2016 Sleep health technologies continue to attract market interest Dreem is an adjustable SleepHealth app aims to Eight raises $6M in seed headband that maintains connect sleep habits to funding for its sleep tracking deep sleep using sound health outcomes mattress pad Device’s series of sensors act as App is part of ResearchKit and will Mattress pad tracks user’s a portable EEG to detect when a explore how sleep habits effect bedtime, wakeup time, movement, user is in deep sleep and then daytime activities, alertness, heart rate and more. emits a sound against the skull to productivity and general health. Also tracks environmental factors prolong the state. Created by the American Sleep like temperature, noise level and Machine-learning algorithm will Apnea Association and powered light level. improve over time. by IBM Watson’s Health Cloud. Company was formerly known as Companion iOS or Android app Uses the Apple Watch’s various Luna. will wake users at the optimal sensors to track movement during Crowdfunded $1.2M in pre-orders time. sleep and sleep quality. on Indiegogo. Device will retail for $349. Available as a free download. Will retail between $249 and $289 Rythm has raised $11M to date. depending on the bed size. Editorial: The three segments of the sleep tracking market are sensors and straps, smart sleep masks, and smartphone apps. The most active segment is the sensors and straps category, which include big wearable players like Withings and Jawbone, as well as segment-specific companies like Eight, Sleepace, and Beddit, which struck up a recent partnership with wearable maker Misfit just prior to their acquisition by Fossil Group. Circle Square | CHaT Trends | Page 5 Source: mHealth Spot; HIT Consultant; MobiHealthNews Fitness and Wellness Spring 2016 Fitbit is number one in wearables but market share is slipping Fitbit sold 21 million units in 2015 but Chinese company Xiaomi is growing quickly, up nearly 1000% from 2014. Fitbit's dominance has been eroding since launch and its stock price is down. Top 5 Wearables Vendors for 2015 Fitbit's revenue for 2015 totaled $1.86 billion. U.S. is # of units Market Y-O-Y Vendor their largest market with Europe, the Middle East and Africa next (millions) share growth in line. 21.0 26.9% 93.2% Apple attained nearly 15% of the market in just a single year despite significantly higher device prices. Xiaomi 12.0 15.4% 951.8% devices range between $11 and $15. 11.6 14.9% NA Adoption levels for wearables are still growing, with a compound annual growth rate of 24.8% expected over 3.3 4.2% 60.9% the five years. 3.1 4.0% 18.5% Device accuracy and regulation are two of the biggest barriers blocking widespread adoption. Editorial: The major players will release new models in 2016, including a smartwatch from Fitbit, as well as sleek new models from other players like Motorola. Fitbit is investing heavily in their wellness platform, as are Apple, Google and Samsung, a sign that these tech giants believe the healthcare sector is poised to drive major growth in wearables in the near future. Fitbit stock crashed more than 11% after its first quarter of FY16 earnings were reported. Circle Square | CHaT Trends | Page 6 Source: Tech Crunch; Business Insider Fitness and Wellness Spring 2016 Empatica Embrace wristband can detect seizures Empatica’s medical-quality wristband Embrace monitors stress signals to detect seizures, allowing wearers and caregivers time to intervene. Sensors underneath the wristband’s face track temperature, movement, pulse and EDA, which are subtle electrical changes across the skin. If a seizure is detected, the device vibrates. If a wearer doesn’t respond, it sends an alert to a caregiver via a companion app. Sensors built in Can also be used for children with emotion regulation Photoplethysmography: heart rate and variability issues or autism to determine a “fight or flight” Three-axis accelerometer: motion-based activity response. Event marker button: correlation Electrodermal: galvanic skin response Infrared thermopile: skin temperature Raised $780,000 on Indiegogo by marketing to Internal real-time clock: streaming epileptics and those looking to track stress. Available from the Embrace website for $199. Editorial: A scientific-grade version of the wristband called the E4 (available for $1,690) is being used by researchers at Intel, Microsoft, NASA, MIT, Harvard and Boston Children’s Hospital to study epilepsy, with several studies confirming that EDA data combined with motion data from the wrist can improve seizure detection. As the health wearables market matures, we expect to see more clinical sensors such as these drive devices toward specific patient populations and conditions. Circle Square | CHaT Trends | Page 7 Source: MIT News; Empatica Fitness and Wellness Spring 2016 Roundup of headlines in digital health for women $89 smart breastfeeding monitor tracks the Internet culture site highlights top apps for amount of breast milk an infant takes in by tracking ovulation and associated factors like listening to a baby’s physiological swallowing energy levels, sleep, and appetite. Top picks: sounds and patterns. Clue, Glow, and more. The free Spot On app helps users track and San Francisco-based company raised $3.9 manage their period as well as monitor million for a smartphone-connected breast symptoms like fatigue, cramps, bloating, and pump with water-based hydraulics that retails stomach aches.
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