Life Science and Technology Firms Forge Ahead into Digital Health Despite Challenges

White & Case Report Highlights:

• The report highlights the perspectives of industry executives on the internet healthcare sector.
• More than 90% of life sciences and technology companies plan to increase their focus on and investment in the internet healthcare sector.
• 63% of executives at technology companies and 50% of executives at life sciences companies stated that mergers and acquisitions are profoundly influencing the formulation of their current corporate development strategies, serving as a critical strategic initiative to enter the internet healthcare sector and achieve substantial growth in this field.



A survey report titled “Frontiers: Shaping the Future of Digital Healthcare,” jointly released by White & Case LLP and Mergermarket, captures insights from senior executives in the U.S. science and technology sectors on the future trajectory of internet-based healthcare. The report also analyzes the various challenges inherent in the successful research, development, and launch of digital healthcare products and services.

Survey results indicate that 90% of life sciences and technology companies claim that while internet healthcare plays a significant role in their overall corporate business strategy, they are simultaneously facing a variety of challenges.

“We have observed keen interest from life sciences and technology companies in the internet healthcare sector,” said Dimitrios Drivas, Global Head of Intellectual Property at White & Case. “In light of this, we have carefully outlined the opportunities and challenges within the internet healthcare space and proposed strategies to maximize the likelihood of success for such ventures. Internet healthcare is poised to reshape the current landscape of the medical industry while significantly driving its development.”

 Dimitrios Drivas

“Companies that are investing financial and human resources into the field of internet healthcare are creating an industry with entirely new competitive advantages,” said Drivas. “These companies are leading a global healthcare reform, which, if implemented successfully, will significantly improve patient outcomes.”

The report also points out that remote monitoring and Internet healthcare will see significant growth over the next 20 years through the use of mobile devices; moreover, Generation X (born between 1965 and 1981) is expected to become the largest consumer group for Internet healthcare within the next five years.

The report also shows that among the 120 executives surveyed, 90% of respondents stated that internet healthcare has become an integral part of their overall business strategy. As business strategies mature, 92% of life sciences companies and 96% of technology companies also plan to gradually expand their investment scope in the internet healthcare sector within the next 18 months, aiming to enhance the marketization of internet healthcare and further strengthen their market adaptability.

Furthermore, 63% of technology company executives and 50% of life sciences company executives respectively believe that mergers and acquisitions (M&A) will be regarded as the most attractive approach to entering the internet healthcare sector. Meanwhile, a majority of senior leaders from both the technology and life health industries have indicated that their companies will pursue internet healthcare strategies, even though they recognize that their products may not be protected by patents. According to a recent report by Accenture, virtual healthcare technologies can save $10 billion annually in primary care costs and help address the shortage of physicians by improving diagnostic and treatment efficiency. Consequently, professionals from both industries agree that collaboration can generate substantial value.

The report also outlines other difficulties and challenges:

• Patients and consumers lack a clear understanding of the benefits of internet-based medical services and products. Furthermore, investigators found that physicians harbor opposition and resistance toward internet healthcare.

• 81% of technology companies and 75% of life sciences companies stated that intellectual property issues would hinder the development of internet healthcare.

• Over 80% of respondents believe that potentially incompatible corporate cultures may hinder collaborative development, as well as the research and development and commercialization of internet healthcare products.

For instance, a survey conducted by the Council of Accountable Physician Practices (CAPP) and the Bipartisan Policy Center indicated that many Americans still lack awareness of internet-based medical tools and are unable to effectively discuss digital health technologies with their physicians.

Compiled by: Chen Kun

Editor: Zhang Nan