Dr. oren fuerst digital health@nyc march 31 2014

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Digital Health Series I- Wearables Dr. Oren Fuerst NYC March 31 2014

Personal computers and mobile technology have changed everything we do things in life. Personal health devices will change how we deal with our health in just as significant of ways. Just as shy people now have ways to interact with others, those who are shy of health care will

have new options. We are just at the start of this health device movement. Steve Wozniak

http://www.forbes.com/sites/johnnosta/2014/01/02/digital-health-in-2014-the-imperative-of-connectivity/

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http://getreferralmd.com/wp-content/uploads/2013/11/the-future-of-medicine-infographic.jpg

Digital Health is Broad

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Personalized, Science Driven, Software Guided Approach to Healthier Life

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http://www.forbes.com/sites/toddhixon/2014/03/18/wearable-devices-selfies-for-health-nuts/

http://endeavourpartners.net/three-critical-factors-wearable-devices-need-to-succeed/

http://gigaom.com/2014/02/22/the-three-critical-factors-wearable-devices-need-to-succeed/

What is clear: Investors have spent over half a billion dollars in equity and debt on wearable tech startups since 2009

Simple Classifications are no longer clear2013 Digital Health Capital Raising by Category



http://techcrunch.com/2014/03/04/the-wearables-market-is-wear-its-at/?ncid=rss


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Investors have spent over half a billion dollars in equity and debt on wearable tech startups since 2009

http://rockhealth.com/2014/03/10-things-didnt-know-wearable-tech/

http://techcrunch.com/2014/03/04/the-wearables-market-is-wear-its-at/

http://techcrunch.com/2014/03/04/the-wearables-market-is-wear-its-at/?ncid=rss

http://rockhealth.com/2014/03/10-things-didnt-know-wearable-tech/

http://techcrunch.com/2014/03/04/the-wearables-market-is-wear-its-at/

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The So-So deal: Jawbone Acquires BodyMedia For Over $100 Million

We just saw the tip of the iceberg http://techcrunch.com/2014/03/03/basis-goes-to-intel-for-around-100m/

http://techcrunch.com/2013/04/30/jawbone-will-acquire-bodymedia-for-over-100-million-to-give-it-an-edge-in-wearable-health-tracking/

The Good Deal: Basis Goes To Intel For Around $100M

Recent M&A Activity in Wearables:

http://www.reuters.com/article/2014/03/26/us-facebook-acquisition-idUSBREA2O1WX20140326

And then came the Oculus ($2Bn) deal [March 26 2014]

"Imagine enjoying a court side seat at a game, studying in a classroom of students and teachers all over the world or consulting with a doctor face-to-face - just by putting

on goggles in your home," he [Mark Zuckerberg] said.

http://techcrunch.com/2014/03/03/basis-goes-to-intel-for-around-100m/

http://techcrunch.com/2013/04/30/jawbone-will-acquire-bodymedia-for-over-100-million-to-give-it-an-edge-in-wearable-health-tracking/

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The Wearable Landscape

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Global Market for Wearable Computing Devices Projected To Reach $30.2 Billion in 2018; Consumer Market Expected To

Surge With 52% CAGRhttp://www.prnewswire.com/news-releases/global-market-for-wearable-computing-devices-projected-to-reach-302-billion-in-2018-consumer-market-expected-to-surge-with-52-cagr-247116761.html

http://www.redorbit.com/news/technology/1112976153/smart-wearable-devices-report-juniper-research-101613/

The mobile smart wearable device market is set to reach $19 billion by 2018, according to a report released by Juniper

Research.

https://www.credit-suisse.com/il/en/news-and-expertise/news/economy/sectors-and-companies.article.html/article/pwp/news-and-expertise/2013/07/en/the-future-of-wearable-technology.html

Credit Suisse IT Hardware Analyst Kulbinder Garcha predicts that the market for wearable technology will increase tenfold to

as much as 50 billion US dollars over the next three to five years.

https://www.credit-suisse.com/il/en/news-and-expertise/news/economy/sectors-and-companies.article.html/article/pwp/news-and-expertise/2013/07/en/the-future-of-wearable-technology.html

��10http://techcrunch.com/2014/03/20/fitbit-faces-class-action-lawsuit-over-the-force-fitness-tracker/

Fitbit Faces Class-Action Lawsuit Over The Force Fitness Tracker

http://www.fitbit.com/forcesupporthttp://www.forbes.com/sites/markrogowsky/2014/03/13/fitbit-force-recall-is-bad-for-the-company-and-wearable-tech-but-is-it-necessary/

http://edition.cnn.com/2014/02/21/tech/gaming-gadgets/fitbit-force-recall/

Fitbit recalls activity tracker [Force] due to skin rashes

Fitbit

http://www.businesswire.com/news/home/20140107005987/en/Fitbit-Announces-Leading-Sales-Digital-Fitness-Category#.Uy9MU62SyXw

Fitbit responsible for 67 percent of total units sold in the category during previous 52 weeks, ending Christmas 2013 (Dec 21)


��11http://www.businessoffashion.com/2013/05/in-annual-internet-trends-report-mary-meeker-underscores-mobile-momentum-wearables-and-digital-china.html

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Google Glass. Part of the wearable health landscape?

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New York Times, http://well.blogs.nytimes.com/2014/03/10/the-monitored-man/?_php=true&_type=blogs&ref=science&_r=0

Not Just Steps or heartbeats. Example- Muscle Effort

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Not Just Steps or heartbeats. Example- Lumo Lift

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Not Just Adults. Example- Zamzee

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Not Just Adults. Example- Owlet

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Not Just Wearables for Humans

Voyce as one Example (HR, Respiratory, activity tracking)

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Wearable Devices are Finally Achieving Mass Market Penetration in the United States

Skeptics and proponents of the wearables market alike recognize the significant technological innovations taking place and the opportunities for profits. Successful ventures in this space will enable new revenue streams through services and/or hardware or increase bottom line revenues by improving healthcare outcomes and reducing costs. For companies across the value chain, the stakes are high.

Endeavour Partners recently conducted an Internet-based survey of thousands of Americans and concluded that as of September 2013, one in ten U.S. consumers over the age of 18 now owns a modern activity tracker from the likes of Jawbone, Fitbit, Nike, Misfit Wearables, and others . 1

"""

© 2014 Endeavour Partners LLCPage ! of ! 2 17

1 in 10 Americans over 18 now owns an activity tracker

! Endeavour Partners’ survey did not include households without Internet access1

U.S. Activity Tracker Ownership (Endeavour Partners, September 2013)


��19Furthermore, there is a bimodal distribution among users by age. There is a younger cohort of adopters, most of whom fall into the 25-34 age range. These users are primarily focused on fitness optimization. There is an older cohort of adopters between age 55-64, who are focused on improving overall health and extending their lives. There is a broad opportunity to launch wearable products and services targeting different cohorts, and specific personas within those cohorts.

These consumers have adopted — with greater and lesser degrees of success — a variety of wearable products and related wellness services designed to help them live healthier lives by altering their habits.

While some companies have introduced wearable hardware and services, others have built service offerings that leverage the multitude of devices in the market. Each of these has a different value proposition or feature mix that claims to offer a unique method for harnessing the power of the mobile Internet to meet consumer needs and preferences.

© 2014 Endeavour Partners LLCPage " of " 3 17

18%

0%

10%

20%

30%

19%16%

% of activity tracker owners

% of U.S. population25%

13%

17% 18%20%

16% 15%17%

7%

18-24 25-34 35-44 45-54 55-64 65+

Age group

Percent of Activity Tracker Owners vs. Percent of U.S. Population By Age (Endeavour Partners, September 2013)


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For example, mobile network operators such as AT&T, healthcare providers and insurers such as Humana Inc., and data aggregators such as TicTrak and Foxing have each introduced services that integrate with consumers’ wearable devices. AT&T’s mHealth Platform is an open developer ecosystem that gives consumers the ability to aggregate health data from applications and devices. Humana offers an activity tracker rewards program and an app that integrates fitness and eating behaviors. TicTrak and Foxing collect and aggregate data from different activity trackers and body measuring devices.

The Dirty Secret of Wearables

In the midst of this frenzy of anticipation, the dirty secret of wearables remains: most of these devices fail to drive long-term sustained engagement for a majority of users.

Endeavour Partners’ research reveals that more than half of U.S. consumers who have owned a modern activity tracker no longer use it. A third of U.S. consumers who have owned one stopped using the device within six months of receiving it.

© 2014 Endeavour Partners LLCPage " of " 4 17

Declining Rate of Sustained Activity Tracker Use Over Ownership (Endeavour Partners, September 2013)



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There is more early evidence that feedback leads to change in behavior. …….Massachusetts General Hospital, ……a small study giving trackers to diabetes patients aged 50 to 70. “Every

single person increased their activity,”

…about 10% of users are “Quantified Selfers” who monitor their data and take motivation from it. Another 20%-30% can change behavior with some encouragement in addition to the

data tracker. But most of the subjects observed by Dr. Jethwani don’t understand the data and need help making sense of it. For them, he said, social motivation from a friend or joining a team

or workplace challenge may be more effective.

Good, But not Enough on their Own

…………the health care provider and the patient disconnect…..

Stay Tuned………

…………and most patients still wear a Timex…..

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There is more early evidence that feedback leads to change in behavior. …….Massachusetts General Hospital, ……a small study giving trackers to diabetes patients aged 50 to 70. “Every

single person increased their activity,”

…about 10% of users are “Quantified Selfers” who monitor their data and take motivation from it. Another 20%-30% can change behavior with some encouragement in addition to the

data tracker. But most of the subjects observed by Dr. Jethwani don’t understand the data and need help making sense of it. For them, he said, social motivation from a friend or joining a team

or workplace challenge may be more effective.

Good, But not Enough on their Own

…………the health care provider and the patient disconnect…..

Stay Tuned………

…………and most patients still wear a Timex…..

Healthcare

Dr. oren fuerst digital health@nyc march 31 2014