Digital therapies How can the healthcare system change? 1/2020 - Earlybird Venture Capital
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14th issueu | Spring Edition | Volume 7 1/2020
Interview
Thom Rasche,
Earlybird
Venture Capital
Event
MedTech Radar
LIVE 2020 in Köln
Digital therapies
How can the healthcare
system change?
A cooperation of
¤ Focus: Digital therapies
Digital Therapies
How can the system change?
MedTech Radar LIVE 2020 on 9th June looks at the digital change taking place in healthcare
with examples from the fields of diabetology, cardiology and endoprosthetics. What should
Medtech firms and start-ups do in order to stay in the game?
M
edical products such as pacemakers, evidence-based medicine – it is all about making
insulin pumps and joint implants are decisions based on real-life data. Digital solutions
already playing an important role in mean that these data are increasingly easy to coll-
healthcare. At the same time, continued advance- ect and analyse”, explains Thom Rasche, Managing
ments in digitalisation, miniaturisation, artificial Partner at Early Venture Capital. He believes that
intelligence (AI) and sensor technology indicate as these developments continue, the focus will
that the next generation of medical products is on shift more towards looking at the overall clinical
the horizon. “Many conditions related to cardiol- picture and establishing holistic cross-sector mo-
ogy, endoprosthetics and diabetes require complex dels for healthcare delivery instead of the current
therapies that extend throughout an individual’s method focused on individual medical products or
lifetime. In these cases, digital solutions can pro- drugs. “We need to look more at the overall clini-
vide real improvements and offer patients more cal picture”, stresses Rasche in an interview (see
ownership over their treatment” says Anke Cass- page 36).
ing, investment manager at the fund management
company High-Tech Gründerfonds. Digital models of healthcare provision, cer-
Abb.: BVMed/BIOTRONIK
tainly– but how?
Individual patient needs are playing an increasin- How such models could look like in the future
gly central role – even more so if medical products will be discussed at MedTech Radar LIVE 2020 on
are reimbursed. “Whether value-based care or June 9th in Cologne. Discussions will focus on the
2 MEDTECH RADAR – 1/2020
Focus: Digital therapies ¤
challenges associated with digital medicine in the products important to the Medtech sector”, says
fields of cardiology, diabetes and endoprosthetics. Möll. The association is also advocating openness
Using specific examples, established businesses towards higher-risk digital medical products. In-
from the medical technology and pharmaceutical vestors such as HTGF also feel that further discus-
industries, clinicians and selected start-ups will sions are needed regarding specific routes to imple-
all come together with investors and representa- mentation. “Introducing digital solutions requires
changes throughout the entire healthcare system
that have so far been only partially implemented.
SMEs und start-ups can more easily The DVG legislation still has room for improvement”,
says HTGF’s Anke Cassing. She believes that new
apply locally adapted digital solu-
models for cooperation between the various stake-
tions than larger corporates. holders are needed. “Collaboration between start-
ups, Medtech firms and service providers must be
tives from health insurance providers to discuss strengthened to expedite the entry of useful solu-
promising new healthcare solutions in these fields tions to the market. As an investor we are looking
and identify the possibilities associated with for established medical technology companies that
digitalisation and the challenges that will arise are willing to work with start-ups.” ¤
during the practical implementation.
“Many of our member companies are global pro- MedTech Radar LIVE 2020
viders of medical technologies, who at the same
time, have to apply digital healthcare solutions 9th June, Cologne
within very specific local contexts. This balanc-
ing act of global and local perspectives must be
tackled – both within the companies, as well as MedTech in transition -
with a view to possible funding models”, says Where is digital medicine heading?
Marc-Pierre Möll, managing director of the Ger-
man medical technology association BVMed. The event, organised by BVMed in cooperation
Thom Rasche believes that this situation can with medtech zwo, Earlybird Venture Capital
result in a competitive advantage for SMEs and and High-Tech Gründerfonds, will discuss
start-ups. According to the investor: “Wherever digital healthcare in the areas of diabetology,
possible they can more easily apply solutions that cardiology and endoprosthetics with repre-
are adapted to local requirements and integrate sentatives from industry, start-ups, clinical
them into national reimbursement systems, professionals, health insurance providers and
which is not easily applicable with the structures investors.
of large, global organisations”.
How can start-ups get involved?
The DVG as a driver – but there is
room for improvement Start-ups offering digital solutions in diabetol-
The speed at which the new German Digital Care ogy, cardiology or endoprosthetics can apply
Act (“Digitale-Versorgung-Gesetz”, DVG) is being im- to participate until the end of April. Five teams
plemented has been well received. Experts expect in each of the application areas will receive a
that by mid 2020, the processes for funding digital place at the exhibition. The two best teams in
healthcare applications will be in place. “We are, each field will take part in the main event.
however, critical of the significant requirements
and costs of demonstrating the positive effects of More info: www.medtechradar.live
these solutions, as well as the lack of combination
MEDTECH RADAR – 1/2020 3¤ Focus: Digital therapies
Investor Perspective
„We need to look more at the
overall clinical picture “
How should the sector position itself in order to implement digital therapies in
practice? For Thom Rasche, Earlybird Venture Capital, one thing is clear: In the
future, we must focus more on illnesses and patients rather than on products.
MEDTECH RADAR | Mr Rasche, what possibilities
do digital therapies offer?
Thom Rasche | They open up the possibility for all
businesses in the healthcare sector, whether medical
technology firms, pharmaceutical firms or start-ups,
to get much closer to patients in the future. This re-
presents a complete paradigm shift. To date, compa-
nies have just been the suppliers who only indirectly
communicate with customers and patients. This is
all changing, however, with the introduction of digi-
tal solutions and possibilities
MEDTECH RADAR | Why it‘s important to be close
é
to patients? Why should companies strive to do this?
Thom Rasche works with the VC investor Ear-
Thom Rasche | I think it is important for a variety lybird Venture Capital since 2003. Since 2015,
of reasons. Regulatory authorities and health insu- he is active as Managing Partner.
rance providers are increasingly expecting data that
shows how patients are using medical products and
medicines. The term “compliance” is also relevant
here: What effects are my products having on the
daily life of patients, what interactions are there with just the right amount of insulin as needed. Whilst
other medications or therapies? In the future, know- this scenario is certainly not possible for all diabetic
ledge such as this will go into the process of deciding patients, it demonstrates the kinds of technological
whether something should be funded. developments we can expect.
The good thing here is: Digital solutions can be used MEDTECH RADAR | This will bring about entirely
Abb.: Earlybird Venture Capital
to collect this type of real-life data and be used as the new disease management systems. What other pos-
basis for entirely novel disease management sys- sibilities exist in other areas?
tems, such as in diabetology for example. Imagine an
artificial pancreas with integrated insulin pump that Thom Rasche | Further interesting scenarios for di-
automatically measures insulin levels and injects gital models of healthcare can be seen in cardiology.
4 MEDTECH RADAR – 1/2020Focus: Digital therapiea ¤
For example, think about remotely monitoring pa- Thom Rasche | We need innovations that look at
tients with pacemakers. Real time monitoring and the treatment pathway and course of the disease,
emergency responses are possible. rather than just looking at specific parts. There are
many ideas, but the main question is: How can the-
The question here is simply: Who will take on the re- se business models be implemented?
sponsibility? Should it be the patient’s GP react? We
might even see more reliance on external service MEDTECH RADAR | What is the greatest challenge
providers that collect patient data, evaluate this data that needs to be tackled?
and make it available to doctors in a structured for-
mat. The central question is: Within a digitally sup- Thom Rasche | We need data that is not sourced
ported infrastructure, who takes care of the patient from clinical studies, i.e. data from the day-to-
and who is liable for what? There are no clear answers day provision of healthcare, that can demonstrate
currently, and that’s precisely why we need to start these approaches. This is the only way to effec-
talking about it. The next MedTech Radar LIVE event tively identify the economic benefits of holistic
on the 9th of June in Cologne will provide a forum for models of healthcare provision.
this discussion.
The question here is: In the future, who needs to
MEDTECH RADAR | Alongside diabetology and car- work together with whom? And how do funding
diology, what other examples of digital therapies will systems need to be adapted so that specific ser-
be discussed? vice packages containing products and the pro-
vision of healthcare itself can be paid for across
Thom Rasche | We have decided on the field of en- multiple sectors? Which business models are best
doprosthetics. This is a field in which new sensor for the companies involved and how can profita-
technologies offer new options for direct monito- bility be determined? How can global companies
ring of implants and carrying out motion analysis. manage to integrate themselves into local health-
Entirely new models for providing care can also be care structures? We still have the situation that
developed if we make the patient central to our con- medical products and medicines are used glo-
siderations. bally, but the actual provision of these to patients
takes place at the national, regional and local le-
MEDTECH RADAR | How could this look in practi- vels.
ce?
MEDTECH RADAR | Do you feel that the sector is
Thom Rasche | It has been shown, for example, that ready to face this challenge?
patients having hip operations spend less time in
the hospital if they are first prepared for the ope- Thom Rasche | Some stakeholders may be ready, but
ration using certain physiotherapeutic procedures most are not. That is why events like MedTech Ra-
and receive a tailored rehabilitation programme dar LIVE are important for raising awareness of the
immediately afterwards. Why then, should implant problem. We are currently seeing plenty of dyna-
manufacturers not concern themselves with pre mism within the digital sector in Germany, which
and post-operative treatment in the future? There is being partly driven by digital healthcare legislati-
is currently too much focus on the product itself. I on. It is therefore the perfect time to talk about how
am convinced, however, that we must start looking things need to develop moving forward. I feel that
at the overall clinical picture and less at individual all stakeholders within the healthcare business
end products. need to work together more: Medical technology
companies, pharmaceutical companies, start-ups,
MEDTECH RADAR | What technologies and inno- insurance providers and hospitals. The boundaries
vations are needed in this regard? are not clear. ¤
MEDTECH RADAR – 1/2020 5¤ Focus: Digital heatlhcare
The MedTech Radar is a joint information serv- The High-Tech Gründerfonds, an initiative of the
ice of HTGF, Earlybird, BVMed and medtech zwo. Federal Ministry for Economic Affairs and Energy,
It offers insights into current trends of medical the KfW, Fraunhofer Society and 32 companies,
technology sector. The publication is published supports young technology companies with seed
twice a year in spring and autumn. financing to advance research projects at least
until a prototype status or until market entry.
The MedTech Radar is available as PDF down-
load in German and English at the websites of
the partners. The German issue is an additional Contact: High-Tech Gründerfonds
part of the medtech business journal “medtech Management GmbH | Cornelia Mann |
zwo” published by BIOCOM AG twice a year in Tel.: +49 228 823 00 121 c.mann@htgf.de |
spring and autumn. www.high-tech-gruenderfonds.de
Earlybird is a European venture capital inves-
tor with an experienced team of health experts As an information specialist, BIOCOM AG has
focused on investing in early European technology supported the life sciences with journals, web-
companies in the health tech area. sites, books and videos for more than 30 years.
The magazine medtech zwo reports on recent
developments relating to the medtech sectors of
Contact: Earlybird Venture Capital Germany, Austria and Switzerland.
Catrin Schmidt | Tel.: +49 30 467 247 00
catrin@earlybird.com | www.earlybird.com
Contact: medtech zwo | BIOCOM AG
Sandra Wirsching | Tel.: +49 30 264 921 63
s.wirsching@biocom.de
www.medtech-zwo.de | www.biocom.de
The German Medical Technology Association
(BVMed) is an industry association that represents Imprint
over 230 industrial and commercial companies in
the medical technology sector. Among its members Responsible for content according to i. S. d. P.
are 20 of the largest medical device manufacturers medtech zwo – BIOCOM AG, Lützowstr. 33–36, 10785 Berlin
worldwide in the field of consumer goods. BVMed – German Medical Technology Association,
Reinhardtstr. 29 b, 10117 Berlin
Contact: BVMed | Manfred Beeres Earlybird Venture Capital – Münzstr. 21, 10178 Berlin
Tel.: +49 30 246 255 20 | beeres@bvmed.de High-Tech Gründerfonds Management GmbH –
www.bvmed.de Schlegelstr. 2, 53113 Bonn
Cover photo: sdecoret/stock.adobe.com
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