Life Sciences Investors
The gestation periods associated with IoT/Connected Health investment opportunities are much shorter than those of Life Sciences assets/opportunities, making returns on investment higher. There might be market inefficiency due to the convergence of two seemingly different sectors, giving one a chance to invest at a favourable price. Finally, attractive exit options exist as the major healthcare providers, pharma/biotech etc. are interested in the Digital health area.
For pharma/biotech corporations, entering the IoT/Connected Health space is critical. Most pharmaceutical and biotechnology corporations are seeking to enhance their assets/brands, and adding a digital facet is a relatively easier, cost-effective and time-efficient option. With the general trend towards 'outcome based pricing', most pharma/biotech corporations have demonstrated (are demonstrating) increased adherence and prevention, leading to better outcomes for patients, less hospitalisation and cost savings for the healthcare providers.
Operational efficiency gain is another reason for pharma/biotech corporations to be partnering with data/device makers, particularly in areas such as clinical trials, regulatory filings, post-marketing monitoring, etc.