Asia HealthTech Investments by Julien de Salaberry (30 June 2015)

MEDTECH CONNECT � HealthTech Asia Investment Insights 30th June 2015 � Singapore � The Propell Group

INVESTMENT Asia HealthTech

@enquirepropell #HealthTech

©2015 by The Propell Group - All rights reserved. Proprietary and Confidential.

•  HealthTech innovation is disrupting healthcare and its established players

•  Technology is driving a new paradigm to create better health care

•  Developing markets can leapfrog their healthcare infrastructure limitations

•  New opportunities are opening to shape the new paradigm

Healthcare is changing dramatically


•  Data

•  BioSensors

•  Mobile Devices

•  Frugal / Reverse Innovation

•  3D Printing

5 Key Drivers of HealthTech in Asia


Data: Changing Healthcare

Genomics Next generation sequencing, data management & analysis

Data Analytics Data Analytics & Insights: working with and mixing data sets

Public Awareness Planning and Preventing: Using data to reduce and prevent disease

Support Providers Clinical and Non-clinical Intelligence: Combining a greater variety of data

Digital Therapeutics Patient Focused: Increase variety and frequency of data

Health Eco-system Collaboration: Pooling data from many sources for bigger & better results


Biosensing Wearables: Creating Context

Activity Trackers e.g. Fitbit, Misfit

Smart Watches

e.g. Garmin, Apple

Smart Clothing

e.g. Athos

Patches & Tattoos e.g. Zio, MC10

Ingestibles & Smart Implants

e.g. Proteus

BioSensors Devices that convert a

biological element into a signal output

Wearables Are on- or in-body devices

that enable user experience


Mobile Devices in Asia: Reaching Everyone

Source: Kleiner Perkins Caufield Byers


Micro sensor for long-term monitoring of cardiac rhythms

Single-channel ECG recorder that is portable, easy to use and low cost (FDA approved) •  Being rolled out across Apollo hospitals in India

Sophisticated physical exam: tracks & trends vitals such as to, HR, VO2, ECG, BP

Flow monitor for safe and accurate infusion •  Y Combinator Accelerator graduate

Reverse Innovation: MedTech For All


LOW COST PROSTHETICS Researchers at the University of Toronto, in collaboration with Autodesk Research and CBM Canada, used 3D printing to quickly produce cheap and easily customizable prosthetic sockets for patients in the developing world

TAILOR MADE SENSORS Researchers have used scans of animal hearts to create printed models, and then added stretchy electronics on top of those models. The material can be wrapped around the real heart and enhanced the electronics with multiple sensors

3D Printing: Next Generation MedTech

BONE Professor Susmita Bose of Washington State University modified a 3D printer to bind chemicals to a ceramic powder creating intricate ceramic scaffolds that promote the growth of the bone in any shape

HEART VALVES Jonathan Butcher of Cornell University has printed a heart valve that will soon be tested in sheep. He used a combination of cells and biomaterials to control the valve’s stiffness

MEDICAL EQUIPMENT Dutch surgeons replaced the entire top of a 22 year–old woman’s skull with a customized printed implant made from plastic

SKIN James Yoo at the Wake Forest School of Medicine in the US has developed a printer that can print skin straight onto the wounds of burn victims.

“Investments in digital health are having a positive impact and the momentum is likely to continue and cause changes throughout the entire healthcare ecosystem. In particular, the pharmaceutical industry is poised to take advantage of digital and mobile innovation allowing them to “go beyond the pill”

— Jack Young — Head – Qualcomm Life Fund

Funding TRENDS


•  Key investment themes taking shape

•  Venture capital funding doubled again

•  Growing number of technology and strategic investors

•  M&A deal flow growing

•  Strong IPO trend

•  10,000+ DH startups across the globe

Significant activity in HealthTech funding


Venture funding of HealthTech: Growth outpaces other healthcare sectors

Health Sector Funding Changes Based on total funding from 2012 and 2013 2013 vs 2012 2014 vs 2013

All Sectors Health Tech Med Devices Biotech

9%

61%

29%

127%

10%

29%

-17%

21%


Venture funding of HealthTech: Key global trends

Top Trends of HealthTech Funding 2011 to 2014

Ranking 2011 2012 2013 2014

1 Healthcare Consumer Engagement

Healthcare Consumer Engagement EHR & Clinical Workflow Analytics & Big Data

Data aggregation & analysis to support a wide range of healthcare use cases

2 Analytics & Big Data EHR & Clinical Workflow Analytics & Big Data Healthcare Consumer Engagement Consumer tools for the purchasing of healthcare services or health insurance

3 Digital Dx Personal Health Tools & Tracking Digital Medical Devices Digital Medical Devices

Software / hardware designed to treat a specific disease or condition

4 EHR & Clinical Workflow Care Coordination Population Health Management

Telemedicine Delivery of healthcare services through virtual channels

5 Post-acute Solutions Wearables & Biosensing Wearables & Biosensing Personal Medicine Software to support the practice of medicine customised to an individual’s genetics

6 Hospital Administration Telemedicine Healthcare Consumer Engagement

Population Health Management Platforms for managing population health under the shift to risk-based payment models


Acquisitions: Is this the start of the HealthTech sector maturing?

95 M&A Deals in 2014 - $20B ACQUIRER TARGET

Flatiron Health Altos Solutions

Teladoc AmeriDoc

Evidera Archimedes

Optum Audax

Roche Bina Technologies

MDLive Breakthrough

Hearst Health CareinSync

Cambia Health ClarusHealth

Merck eCardio

Google Lift Labs

UnitedHealth Group MedSynergies

WellTok MindBloom

HCA PatientKeeper

Facebook ProtoGeo (Moves)

AirStrip Wireless Sense4Baby

MyFitnessPal Sessions

WebMD TheraSim

Covidien Zephyr Technologies

Sector # of M&A deals

Health Tech

Med Device

Payer

Biopharma

Provider

Other Healthcare

Tech

Other

47

8

6

6

4

4

7

13

ACQUIRER TARGET VALUE

BD CareFusion $12.2B

Cognizant TriZetto $2.7B

Cerner Siemens Health $1.3B

Optum Alere $600M

Aetna bswift $400M

Brighton Health Privia $400M

GE API Healthcare $340M

Emdeon Change Healthcare $185M

Medtronic Corventis $150M

Astra Zeneca Definiens $150M

Intel Basis $100M

Everyday Health Medico.com $100M

Millenium Labs RxAnte $70M

St Jude Medical CardioMEMS $60M

Care.com Citrus Lane $49M

Advisory Board Co. HealthPost $25M

Weight Watchers Wello $9M

Premier Meddius $8M

DISCLOSED UNDISCLOSED

“For all emerging markets, the conditions are very challenging. But where we see challenges, I see opportunity. In fact: our challenges are your opportunities ”

— Joko Widodo — President, Indonesia

Asia PARADOXES


Asia Paradoxes: Infrastructure

Immature Healthcare Infrastructure Health expenditure (%GDP) Health expenditure (per capita US$)

Nurses (per ‘000 population) Doctors (per’000 population)

3.5% 3.9% 4.6% 4.9%

9.0% 9.9%

11.0% 11.4%

16.9%

Kenya France Bangla-desh

India US Japan UK China Ger-many

19.50 44.10 44.50 164.50

3,445.90 3,590.80

4,524.10 4,973.10

7,830.10

France Ger-many

Japan UK China India Kenya Bangla-desh

US

0.1 1.1 1.1 1.3

7.9 8.0 8.1

9.3

11.4

Ger-many

Japan US UK France India Kenya China Bangla-desh

0.1 0.3 0.6

1.6 2.2 2.3

3.0 3.5

6.8

Ger-many

France US UK Japan China India Bangla-desh

Kenya

Source: World Health Organisation, Espicom


Asia Paradoxes: Medical Needs

Large Unmet Medical Needs Cardio Vascular Disease (Deaths per 100,000) Diabetes Disease (Deaths per 100,000)

Lung Cancer Disease (Death per 100,000) RTAs (Death per 100,000)

Indonesia Australia S.Korea China US India Bangladesh Singapore France

Source: World Health Organisation,

34.7

79.7 82.4

150.8 165.8 203.7

29.2 60.3 68.8 80.5

UK Bangladesh France Singapore China US India Indonesia S.Korea UK

10.8 13.4

23 23.8 23.8 29.5

5 8.1 9.9

15.2

Australia

S.Korea France India Bangladesh US Singapore China Indonesia Australia

6.5

20.3 20.5

27.3 27.5

33.5

18.2

29.6 31 35.4

UK India France Singapore S.Korea US China Indonesia Bangladesh UK

5.3

13.7 16.4

18.7 20.8

22.6

4.8 6.6 6.8

13.9

Australia


Asia Paradoxes: Income Diamond

Deeper Market Relevance From skimming to penetrating the market

Premium Market Segment

Value Market Segment

Underserved Market Segment

56%

30%

13%

1%


•  Lifestyle and wellness apps driven by growing middle class affluence

•  Infrastructure management and modernisation

•  Chronic disease management driven by growing health awareness

•  Reverse innovation enabling better care at an affordable price point

•  Growing demand for senior healthcare products and services

Asia: Key Drivers


HealthTech: Asia HealthTech Startup Landscape

Nascent But Thriving Ecosystem

Note: WIP!Source: Health Startups Asia!

HealthTech Startup Categories

Big Data & Analytics

3% Genomics &

Precision Medicine 2%

Consumer Health & Wellness

18%

Navigating the Healthcare System

19%

Patient Engagement

23%

Practice Engagement

16%

Sensors & Diagnostics

15%

Telehealth & Remote Monitoring

4%

HealthTech Startup Geographies

Australia 5%

Indonesia 3%

Singapore 7%

Malaysia 1%

Hong Kong 3%

India 29%

Philipines 2%

Vietnam 1%

China 43%

South Korea 1%

Thailand 1%

Japan 3%

Taiwan 1%


Venture funding of HealthTech: Asia Key Trends

Noteworthy Asia HealthTech Funding Rounds

Target Category Funding Size ($M) & Stage

Principal Investor(s)

Meet You (CH)


35.0 Series C

•  Matrix Partners

•  K2 Partners

Practo (INDIA)

Navigating The Healthcare System

30.0 Series B

•  Sequoia Capital

PICOOC (CH)


25.0 Series B

•  Tencent •  Gobi Partners

1MG (pka HealthKartPlus) (INDIA)


20.0 Series B

•  Sequoia Capital

•  Intel Capital

DocDoc (SG)


8.5 Series A

•  Jungle Ventures

•  SparkLabs

Target Category Funding Size ($M) & Stage

Principal Investor(s)

ConnexionsAsia (SG)


8.0 Series A

•  NorthStar Investments

•  BioVeda

Reka Health (SG)


4.0 Series A

•  Tembusu Partners

Our Health Mate (SG)


1.0 Seed / Pre A

•  LeoTech

Healint (SG)

Patient Engagement 1.0 Seed / Pre A

•  WaveMaker •  GREE

Ventures

mClinica (PH)

Patient Engagement 1.0 Seed / Pre A

•  KickStart Ventures

•  500Startups

Note: WIP!Source: Health Startups Asia!


Asia Healthcare Accelerator Landscape

Most Asia accelerators have a broad sector focus Next 12 months will likely see the launch of additional healthtech focused accelerators

•  There are 100+ incubators & accelerators across Asia – virtually none are 100% focused on healthtech

•  Growing maturity of the ecosystem vs. 115 healthtech accelerators worldwide (87 in the US)

•  Putting Asia / Singapore on the map

•  Emergence of corporate incubators with a healthtech focus

Incubator! Accelerator!

Focused!

Broad!

Clearbridge Accelerator

(SG)!

AIA !(HK)!

MetLife (SG)!

Independent!

Captive!JFDI Asia

(SG)!

BioFactory (SG)!

SPRING SSA MedTech

(SG)1!

SparkLabs (KR)!rockstart!

(SG)!

Modern Ageing!(SG)3!

Muru D! (SG)!

Other Asia Accelerators2!

Note 1: Zicom MedTacc and Med Tech Alliance, together with SPRING Singapore will co-invest S$60 million to develop promising medical technology ventures!Note 2: A number of accelerators exist in Asia e.g. GSF India which operate on a similar model to JFDI Asia but have no deliberate focus on healthtech!Note 3: Modern Ageing is a pre-Accelerator!

EVA !(IN)!

•  HealthTech is disrupting healthcare and its stakeholders

•  Technology is driving a new paradigm to create better healthcare

•  Asia healthcare will be able to leapfrog its infrastructure limitations

•  New opportunities are opening to shape the new paradigm

•  What healthtech solution could you hack?

Healthcare is changing dramatically

Julien de SALABERRY

Experienced regional head and GM. 15+ years in healthcare with leading brands including Eli Lilly, Boston Scientific, Baxter, GSK, Merck & Co. Significant Asia Pacific Experience.

The Propell Group is a boutique venture investor and adviser firm focused on early stage companies in healthcare technology

Co-Author of iDisrupted

Founder & CIO � The Propell Group

M: +65 9488 7334 � [email protected] @enquirepropell

Asia HealthTech Investments by Julien de Salaberry (30 June 2015)

Healthcare

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