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Why Big Tech is Plotting an Invasion of the Healthcare Market

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The idea of using modern tech to transform the multi-trillion dollar healthcare industry has been around for a long time.

In 1996, legendary Silicon Valley entrepreneur Jim Clark launched his third startup, Healtheon, which was focused on what he called the “Magic Diamond”. The diamond represented the $1.5 healthcare market in the U.S. and its shape came from the doctors, providers, payers, and consumers slotted into the four outer points.

In the middle of the diamond, Clark had placed his new company Healtheon, which he expected to profit immensely from connecting the healthcare world together with the internet.

Before Its Time?

Healtheon had a successful IPO in the middle of the Dotcom bubble, but it never was able to truly achieve its bold and original vision. As signals mounted that Dotcom stocks would implode, the fledgling company merged with WebMD in 1999.

Despite the fate of Healtheon, the dream of tech invading the healthcare market lives on – and today, big tech companies like Amazon, IBM, Alphabet, and Apple all have plans to enter the sector in a big way.

Today’s infographic from Koeppel Direct shows how this is all playing out, as well as the specific initiatives that big technology companies are using to gain a foothold in a market that’s ripe for change.

Why Big Tech is Invading the Healthcare Market

The story is no longer about the startups coming in to “disrupt” healthcare – unfortunately, the industry seems to have too much red tape, regulation, and bureaucracy for this to be possible in the conventional way. Instead, it’s the big companies like Amazon, Apple, IBM, and Alphabet that are eyeing to invade the space.

And for technology companies focused on big data, the healthcare market is a compelling opportunity.

Healthcare Market Potential

By the numbers, here is a snapshot of the healthcare market, and why big tech wants in:

  • Global healthcare spending is expected to reach $8.7 trillion by 2020
  • In the U.S., there will be 98.2 million people aged 65+ years by 2060
  • Diabetes will affect 642 million people globally by 2040
  • 70% of healthcare firms are investing in consumer-facing tech, like apps, remote monitoring, and virtual care
  • Wearable tech could drop hospital costs by 16% over the course of five years
  • Remote patient monitoring tech could save the healthcare system $200 billion over the next 25 years
  • Over 80% of consumers say that wearable tech has the potential to make healthcare more convenient
  • 88% of physicians want patients to monitor health parameters at home

Scientific advancements and technology have already been responsible for saving billions of lives through history, and now it’s time to see if big tech can step up to the plate using AI, augmented reality, big data, and other technologies to do more of the same – especially if it helps move these companies closer to the center of the “diamond”.

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Demographics

Visualizing Over A Century of Global Fertility

Global fertility has almost halved in the past century. Which countries are most resilient, and which have experienced the most dramatic changes over time?

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Visualizing Over A Century of World Fertility

In just 50 years, world fertility rates have been cut in half.

This sea change can be attributed to multiple factors, ranging from medical advances to greater gender equity. But generally speaking, as more women gain an education and enter the workforce, they’re delaying motherhood and often having fewer children in the process.

Today’s interactive data visualization was put together by Bo McCready, the Director of Analytics at KIPP Texas. Using numbers from Our World in Data, it depicts the changes in the world’s fertility rate—the average number of children per woman—spanning from the beginning of the 20th century to present day.

A Demographic Decline

The global fertility rate fell from 5.25 children per woman in 1900, to 2.44 children per woman in 2018. The steepest drop in this shift happened in a single decade, from 1970 to 1980.

In the interactive graphic, you’ll see graphs for 200 different countries and political entities showing their total fertility rate (FTR) over time. Here’s a quick summary of the countries with the highest and lowest FTRs, as of 2017:

Top 10 CountriesFertility rateBottom 10 CountriesFertility Rate
🇳🇪 Niger7.13🇹🇼 Taiwan1.22
🇸🇴 Somalia6.08🇲🇩 Moldova1.23
🇨🇩 Democratic Republic of Congo5.92🇵🇹 Portugal1.24
🇲🇱 Mali5.88🇸🇬 Singapore1.26
🇹🇩 Chad5.75🇵🇱 Poland1.29
🇦🇴 Angola5.55🇬🇷 Greece1.3
🇧🇮 Burundi5.53🇰🇷 South Korea1.33
🇺🇬 Uganda5.41🇭🇰 Hong Kong1.34
🇳🇬 Nigeria5.39🇨🇾 Cyprus1.34
🇬🇲 Gambia5.29🇲🇴 Macao1.36

At a glance, the countries with the highest fertility are all located in Africa, while several Asian countries end up in the lowest fertility list.

The notable decade of decline in average global fertility can be partially traced back to the actions of the demographic giants China and India. In the 1970s, China’s controversial “one child only” policy and India’s state-led sterilization campaigns caused sharp declines in births for both countries. Though they hold over a quarter of the world’s population today, the effects of these government decisions are still being felt.

Population Plateau, or Cliff?

The overall decline in fertility rates isn’t expected to end anytime soon, and it’s even expected to fall past 2.1 children per woman, which is known as the “replacement rate”. Any fertility below this rate signals fewer new babies than parents, leading to an eventual population decline.

Experts predict that world fertility will further drop from 2.5 to 1.9 children per woman by 2100. This means that global population growth will slow down or possibly even go negative.

Africa will continue to be the only region with significant growth—consistent with the generous fertility rates of Nigeria, the DRC, and Angola. In fact, the continent is expected to house 13 of the world’s largest megacities, as its population expands from 1.3 billion to 4.3 billion by 2100.

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Cannabis

The Big Pharma Takeover of Medical Cannabis

The Big Pharma industry is entering the cannabis space, by swapping patients for patents. But what are the impacts of such a takeover?

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The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless companies.

Today’s infographic comes to us from CB2 Insights, and explores how and why the notorious Big Pharma are interested in the nascent cannabis industry.

Who are “Big Pharma”?

The term refers to some of the largest pharmaceutical companies in the world, considered especially influential as a group. To give a sense of their sheer size, the market cap of the top 10 Big Pharma companies is $1.7 trillion—Johnson & Johnson being the largest, with a market capitalization of $374 billion.

So far, Big Pharma has watched the cannabis industry from the sidelines, deterred by regulatory concerns. What we are seeing now is the sleeping giant’s takeover slowly intensifying as more patents, partnerships, and sponsored clinical trials come to fruition.

Could Cannabis be Sold Over the Counter?

The cannabis plant has been used in medicine for 6,000 years. However, there is still considerable debate around the role it plays in healthcare today. There are currently almost 400 active and completed clinical trials worldwide surrounding cannabidiol (CBD), a type of cannabinoid that makes up 40% of the cannabis plant’s extract.

Cannabis relies on CBD’s therapeutic properties, and recent studies suggest it may be useful in combating a variety of health conditions, such as:

  • Epilepsy
  • Schizophrenia
  • Multiple sclerosis
  • Migraines
  • Arthritis
  • Cancer side effects

As of 2019, 33 states and the District of Columbia have legalized cannabis for medical use. Its potential for pain management has led some experts to recommend it as an alternative to addictive painkillers, with one study of 13 states showing opiate-related deaths decreasing by over 33% in the six years since medical cannabis was legalized.

As the industry evolves, data is becoming increasingly important in understanding the potential of cannabis—both as a viable medical treatment, and as a recreational product. The shift away from anecdotal evidence towards big data will inform future policies, and give rise to a new era of consumer education.

Big Pharma’s Foray into Cannabis

Further legalization of cannabis will challenge Big Pharma’s bottom line, and poach more than $4 billion from pharma sales annually. In fact, medical cannabis sales are projected to reach $5.9 billion in 2019, from an estimated 24 million patients.

Seven of Canada’s top 10 cannabis patent holders are major multinational pharmaceutical companies, a trend that is not unique to Canada.

Company Rank🇨🇦 Canadian PatentsCompany Rank🇺🇸 U.S. Patents
1. Novartis211. Abbvie59
2. Pfizer142. Sanofie39
3. GW Pharmaceuticals133. Merck35
4. Ericsson134. Bristol-Myers Squibb34
5. Merck115. GW Pharmaceuticals28
6. Solvay Pharmaceuticals76. Pfizer25
7. Kao Corporation77. Hebrew University of Jerusalem19
8. Ogeda SA78. Roche17
9. Sanofi69. University of Connecticut16
10. University of Connecticut610. U.S. Health and Human Services13

It comes as no surprise that many pharmaceutical giants have already formed strong partnerships with cannabis companies, such as Novartis and Tilray, who will develop and distribute medical cannabis together in legal jurisdictions around the world.

Data is the Missing Link

While the body of knowledge about the many uses of cannabis continue to grow, clinical evidence is key for widespread adoption.

Products backed by data will be a defining criteria for major companies to come into the market en masse. And ultimately, Big Pharma’s entry could accelerate public understanding and confidence in cannabis as a viable option for a range of ailments, and mark the next major milestone for the industry.

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