Operational environment

Investors

Operational environment

Megatrends on the markets of preventive health and consumer-driven health

 

There is an imminent global megatrend of consumers wanting to manage and improve their personal health. Nightingale expects that its Health Data Platform meets this demand and provides a completely new tool for consumers interested in managing and improving their personal health.

 

Megatrend of preventive health

Chronic diseases can be prevented with early interventions

Chronic diseases are the leading cause of death, claiming millions of lives every year. 80 per cent of these health conditions, including heart disease and type 2 diabetes, are preventable through lifestyle changes. (1

Annually, direct healthcare costs for a patient with a chronic disease are approximately 5 times that of a person without a chronic disease, the costs are primarily derived from more frequent hospitalisations and emergency room visits and greater prescription drug use. (2

Prevention of chronic diseases is most impactful in primary care 

The future of healthcare is prevention, rather than cure. (3 The increasing prevalence of chronic diseases and growing demand for the preventive measures are expected to fuel the growth of the preventative healthcare technologies and services market. (4

Wide range of players disrupting traditional primary care  

The global preventive healthcare technologies and services market size is expected to reach USD 432.4 billion by 2024. The growth of this market is attributed to the adoption of advanced technologies and the development of preventive measures, including vaccines, screening and monitoring devices, and smart devices to reduce medical errors. Growth of the market is also fueled by factors such as the reduction in the birth rate that is resulting in an increase of the geriatric population, which is more prone to chronic diseases. (4

In recent years, consumers have gravitated towards solutions that integrate aspects of primary care into their everyday lives. Numerous startups are disintermediating and transforming the traditional primary care experience in different primary care categories.

Insurance companies aiming to reduce healthcare spending

Reducing healthcare spending is a multi-faceted challenge for insurance companies that requires new and innovative strategies such as offering a wide range of preventive health services in health plans. Insurance companies that encourage beneficiaries to take advantage of preventive services may see decreased utilisation rates and lower costs. Preventive care can help keep patients from developing costly chronic conditions. (5

Leading insurance companies have started to redefine the insurance business with the help of digital services that help customers pay attention to healthy habits and reducing their risks of getting a chronic disease.

Nationwide preventive health initiatives across the globe 

Preventive healthcare is now the number one priority of governments across the globe. (3 Nationwide health initiatives exist around the world in different countries. For example, Singapore and Estonia have launched their own nationwide health initiatives.

 

Megatrend of consumer-driven health

Self-tracking is a megatrend in health and wellbeing

Recent studies indicate that consumers have started to increasingly use various technological solutions to measure and maintain their health. Total number of connected wearable devices worldwide amounted to 526 million in 2017 and is forecasted to reach more than one billion by 2022. Growth within the wearables market is primarily being powered by the sales of smartwatches. (6

Growing demand for digital health solutions

Digital services and solutions are an increasingly common component of the healthcare experience for people. The adoption of digital health tools like telemedicine, wearables, and health applications have consistently climbed upwards. Consumers are searching online for community support, information about their health, and information about health service providers (HSPs). These resources are changing the way they make care decisions, putting pressure on the traditional doctor-patient relationship. According to a recent report, consumers are increasingly sharing their health tracking data with their physicians. (7

Competitive landscape in proprietary health and disease risk detection

The ability to detect health and disease risks of individuals is the key to enable and accelerate preventive healthcare. Quantitative biotechnology-based methodologies to create risk assessment are superior to qualitative tools such as questionnaires.

When comparing companies providing biotechnology based methodologies, the landscape may be separated to following three horizontal categories:

  • Genetic testing companies
  • Blood biomarker testing companies
  • Other lab technology or service companies 

Nightingale’s position according to the categorisation above is to provide blood biomarker testing.

When comparing by core competencies, the landscape may be separated to following three vertical categories:

  • Core competence in providing ‘Innovative biotechnology’ (B2B or DTC)
  • Core competence in providing ‘Interface to biotechnology results’ (B2B or DTC)
  • Core competence in providing ‘Novel health and disease risk detection’ (B2B or DTC)

To achieve a strong position in novel health and disease risk detection, any company operating in the described landscape is likely required to control all three verticals: innovative biotechnology, interface to biotechnology results and novel health and disease risk detection. This requirement filters down the number of players in the landscape significantly, and, therefore, the Nightingale's deems that its position in this comparison is strong.

When further defining a target market to lifestyle related chronic diseases, comparing the medical evidence for population scale use, scalability and maturity of technology, Nightingale deems that its position in the competitive landscape is strong. It is difficult for other actors to achieve a similar position due to the extensive blood analysis technology developed by the company, the health databases it holds and its ability to identify disease risks.

Sources

1 World Health Organisation, The Global Health Observatory, World Health Platform, GHO, Themes, Noncommunicablediseases, available at: https://www.who.int/data/gho/data/themes/ noncommunicable-diseases (visited 2.2.2021).

2 O’Neill Hayes, T. & Gillian S., Chronic Disease in the United States: A Worsening Health and Economic Crisis, American Action Forum, 10.9.2021, available at: https://www. americanactionforum.org/research/chronic-disease-in-the-united-states-a-worsening-health-and- economic-crisis/ (visited 2.2.2021). 

3 Whitbrook, T., The future of healthcare is prevention, rather than cure, Create Healthcare, Kin+Carta, 15.4.2020, available at: https://www.kinandcarta.com/en/insights/2020/04/the- future-of-healthcare-is-prevention/ (visited 2.2.2021). 

4 Preventive Healthcare Technologies & Services Market Report, 2024, Grand View Research, September 2016, available at: https://www.grandviewresearch.com/press-release/global- preventive-healthcare-technologies-and-services-market (visited 2.2.2021). 

5 Beaton, T., How Preventive Healthcare Services Reduce Spending for Payers, HealthPayerIntelligence, 29.8.2017, available at: https://healthpayerintelligence.com/news/how- preventive-healthcare-services-reduce-spending-for-payers (visited 2.2.2021). 

6 Number of connected wearable devices worldwide from 2016 to 2022, Statista, 22.1.2021, available at: https://www.statista.com/statistics/487291/global-connected-wearable-devices/ (visited 2.2.2021).

7 Digital Health Consumer Adoption Report 2019, Rock Health and Stanford Center for Digital Health, available at: https://rockhealth.com/reports/digital-health-consumer-adoption-report-2019/ (visited 2.2.2021).