ICYMI 3 Big News Stories from February
Every Friday we recap the biggest news story of the week to make sure you don’t miss out on the latest trends, developments, moves and acquisitions in digital health. But in case you missed it (ICYMI) this round-up will catch you up on the top stories from the past month.
#1 Story: Still waiting on ROI
The Story: Akili’s recent S-4 filing revealed significant losses for the company. In the first nine months of 2021 Akili made about $377,000. However, their expenses during this time reached more than $41.6 Million. These losses leave the future of the first-game based therapeutic to receive FDA De Novo authorization and the first PDT targeting symptoms of ADHD in question.
Why it’s Notable:
- Akili achieved many firsts and has stood out as a leading example in the DTx space in recent years. They completed 20 clinical studies, published 16 peer-reviewed articles, and reached 2600+ patients, demonstrating the potential of their game-based therapeutic to treat not only ADHD, but also MS, Depression, and Dementia.
- Akili tried numerous unique marketing tactics to increase consumer education and awareness of EndeavorRX including social media campaigns on Facebook and Twitter as well as a sponsored review on Fatherly. Consumer awareness and understanding of DTx has been a challenge across the industry. Even with Akili’s marketing attempts to reach parents and caregivers, it’s clear there’s still a long way to go to overcoming this hurdle.
Industry Implications:
- The company’s recent SPAC deal valued Akili at $1 Billion. This follows the trend we saw in 2021 of extremely high valuations. With company revenues not living up to these valuations, in our 2022 predictions blog we predicted there will be fewer IPOs and that valuations will recalibrate to more realistic numbers.
- However, the SPAC deal led by Chamath Palihapitiya will provide Akili with about $412 Million in cash. This may be the boost Akili needs to get them through current adoption hurdles. Akili anticipates in the next 5-7 years, EndeavorRx could bring in $500 Million per year.
Read the full article here
In other news…
#2 Story Snapshot: Banner | Aetna joint venture makes a digital health play with Virta Health
The story: Banner | Aetna, a joint venture owned by Banner Health and Aetna/CVS announced a strategic relationship with Virta Health to support the reversal of type 2 diabetes. Virta Health aims to help people lower their blood sugar, lose weight and eliminate the need for medications like insulin. The Banner | Aetna joint venture, which launched in 2016, is one of many joint ventures launched by Aetna to support their shift to value-based care (VBC). The strategic relationship with Virta Health shows Aetna is leveraging the use of digital in their VBC efforts.
Get the full story here
#3 Story Snapshot: Medtronic and AWS team up to Donate AI-Assisted Colon Cancer Screening Technology to Underserved Communities.
The story: Medtronic and Amazon Web Services (AWS) announced that they will partner to donate 50 GI Genius AI screening technology modules to endoscopy centers in the US, serving communities with low screening rates or where access to this technology is not currently available, to enable early detection and improve survival rates. Through AWS’s $40 million Health Equity Assistance Programme, they have provided computing credits that have made the funding of this program possible. AWS joins other large health tech industry players involved in health equity. At the end of last year, Novartis sponsored the American Cancer Society’s “Get Screened” campaign and Abbott partnered with the American Diabetes Association to increase health education and access to glucose monitoring technologies.
Get the full story here
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