Fitbit Responds to Jawbone's Repeated Lawsuits: 'We Just Happen to Sell Wearables'
[Today's Highlights]
○ Fitbit CEO: We spend more than two-thirds of our R&D budget on software and services
○ AstraZeneca Appoints Vida to Launch Coaching App for Heart Disease Patients
○ The global mHealth market is projected to grow at a compound annual growth rate (CAGR) of 33.5% from 2015 to 2020.
○ U.S. telehealth startup secures $2 million in funding
○ Microsoft Shuts Down MSN Health & Fitness Program, but Microsoft Healthcare Software Remains
○ The electronic medical record (EMR) market is projected to grow at an annual rate of 7% to 8% over the next five years.
1. Fitbit CEO: We spend more than two-thirds of our R&D budget on software and services
Fitbit Founder and CEO James Park believes that Fitbit is not a hardware or wearable company, but rather a health and wellness company for consumers, which just happens to be selling wearables at the moment. In fact, more than two-thirds of the company’s R&D budget is spent on software and services, which aligns well with its recent acquisition of the fitness video company Fitstar. Park stated, “Innovation is not just reflected in the number of patents you hold, but more importantly in market success. I believe we have excelled in two areas: first, we hold over 200 patents, with 93 of them personally held by me; second, we command an 85% market share. I am very confident in the path we are taking. I respect our competitors, whether large or small companies, and I hope they choose to compete in the marketplace rather than in the courtroom.”
2. AstraZeneca Appoints Vida to Launch Coaching App for Heart Disease Patients
According to Fortune magazine, AstraZeneca and Vida have partnered to develop a coaching app called “Day by Day.” The program not only accelerates patient recovery but also helps patients cope with the trauma they experience after a heart attack.
Vida raised $5 million in October 2014 and currently provides health and wellness coaching services. Through its app, Vida connects users with nutritionists, physicians, diabetes educators, and nurses, charging consumers a weekly fee of $15. The platform offers eight programs: weight loss, fitness, detoxification, feeling better, stress reduction, cholesterol lowering, blood pressure lowering, and diabetes prevention.
In addition to the aforementioned features, “Day by Day” coaches will also guide users through the cardiac recovery process, including medication regimens. The app will also incorporate educational content, such as videos, articles, and food journals, to enhance user engagement.
3. The global mobile health market is projected to grow at a compound annual growth rate (CAGR) of 33.5% from 2015 to 2020.
Recently, Allied Market Research released a report on the global mobile health market, stating that the global mobile health market was valued at $10.5 billion in 2014. It is projected that blood pressure monitors will account for the largest share of the global mobile medical device market, followed by blood glucose monitors and cardiac monitors. North America will continue to maintain its leading position in the overall mobile health market. The key findings of the study indicate that between 2015 and 2020:
1. Blood glucose meters are projected to be the fastest-growing segment in the global mobile medical device market, with a compound annual growth rate (CAGR) of approximately 41%.
2. The Asia-Pacific region is projected to be the fastest-growing region, with a compound annual growth rate (CAGR) of 35.9%.
3. Mobile health applications for cardiovascular disease and diabetes remain a lucrative market segment for manufacturers.
4. U.S. Telehealth Platform Secures $2 Million in Funding
Curely, a California-based company, has developed a telehealth application that secured $2 million in its Series A funding round. Patients and physicians can communicate through the app; however, physicians are prohibited from diagnosing conditions or prescribing medications, and are limited to answering questions related to health and care. The company contends that because its physicians do not provide diagnoses or prescribe prescription drugs, they are exempt from certain regulatory requirements and geographic restrictions. This constitutes a competitive advantage, and the platform currently hosts nearly 600 licensed practitioners from 17 countries.
5. Microsoft Shuts Down MSN Health & Fitness Program, but Microsoft Medical Software Remains
Microsoft has announced that it will discontinue three of its MSN applications: MSN Health & Fitness, MSN Food & Drink, and MSN Travel. However, Microsoft Health, as a standalone application, will remain unaffected. Among these, MSN Health & Fitness is scheduled to be discontinued on November 1 of this year. In a statement, the company said, “We regularly evaluate our business to ensure we are focused on areas that deliver the greatest value to our users.”
6. The electronic medical record (EMR) market is projected to grow at a rate of 7% to 8% over the next five years.
According to a recent report by Kalorama Information, the EMR (Electronic Medical Record) market is projected to grow at an annual rate of 7% to 8% over the next five years. The EMR market data indicates that although the growth rate is lower than in previous years, vendors still have numerous opportunities. One of the reasons for the continued growth of the EMR market is physicians’ fear of penalties associated with using paper records.