Digital Health Is Changing Health Care. Is it Changing Pharma?

 
• By Melanie Senior
  
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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.

When Google launched a health care company, Calico, in September 2013, few Big Pharma CEOs appeared to flinch. Google’s venture – its second foray into health care, after a first flop in 2011 – doesn’t present an immediate threat to pharma margins. But it symbolizes a bigger trend that is transforming the health care landscape, and pharma’s role within it: the rise of digital health.

The term is used broadly to encompass all technology-driven innovation applicable to health care, from consumer-facing mobile apps and monitors,...

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