DIGITAL HEALTH STARTUPS: A SECTOR WITH GROWTH POTENTIAL

DIGITAL HEALTH STARTUPS: A SECTOR WITH GROWTH POTENTIAL

“Barcelona is one of the top 5 world centres for health innovation with some of the world leading specialists making important advances in research from AIDS, genetics, dyslexia, cancer and the list really does go on” says Gary Broekhoven, entrepreneur, innovation consultant and founder of Health Mavericks, a digital health startups accelerator. The digital health sector is booming and many entrepreneurs are working to develop ideas in the field, where they see a potential for growth. Mobile Health Global talked with new entrepreneurs in the Mobile Health field working in Barcelona and other parts of Spain that are at an early stage in their business.

We have also interviewed successful entrepreneurs that were pioneers in this field and they are now consolidated in the international market: Frederic Llordachs, Doctoralia‘s CEO, and Víctor Bautista, founder of Social Diabetes, one of the most used apps by type 1 diabetes patients.

From idea to marketplace

Gary Broekhoven

According with Broekhoven, an entrepreneur who believes that his or her idea can become a successful business must be able to answer a number of questions prior to start developing the project: “What is the problem you are solving? Why is this problem worth solving? I think the majority of all startups that we meet are missing a clear understanding of the customer needs. They need to remember who the user is, their motivation and ability to use the service. Simplicity is key” says Broekhoven, who has an extensive experience as a consultant in innovation and is one of the mentors of MOEBIO, a health entrepreneurship program of Biocat, the organization that coordinates and promotes the life sciences sector in Catalonia. Another fundamental point is to have a clear business model and to understand the existing models in the sector, says Health Mavericks founder. Besides, it is important to know who your competitors are.

Hanan Lavy (@hananl), head of Microsof Ventures a Tel-Aviv, points out that “a startup must have some uniqueness, but it is suspicious not to have any competitors”. Lavy presented in July in Barcelona Microsoft headquarters his company’s Accelerator Program for health startups. In a session organized by Health 2.0 Barcelona Chapter, Lavy encouraged entrepreneurs to apply to Microsoft’s four month program in Tel-Aviv, where digital health startups get mentorship and market expertise.

 “There is fear to take risks with mHealth projects”

David de Mena is Primum Health‘s CEO, a Sevilla based company that has developed a telemonitoring system for chronic patients that obtains and transmits vital parameters such as weight, blood pressure, blood oxygen level, etc. Patients at home measure this data with a tablet and send it to their doctor. De Mena, a former engineer, founded the company in April 2012 after having worked in telemedicine for years. “I realized that there was a huge demand for these products and a lot of work to be done. I have seen many bad products done by technologists that don’t understand the health sector”. Primum Health focuses on chronic patients of diabetes, COPD and heart problems and it can also be used with a prevention focus.

David de Mena

The company is currently working with Virgen del Rocío Hospital (Sevilla), that uses the system to monitor diabetes patients. The system is also being used in private clinics and at old people’s home.

 “We are working really hard but there is fear to take risks with mHealth projects. If we survive the current context we will have an important growth in the next few years”, predicts de Mena.

“I believe in the project as future users are asking for it”

Sebas Idelsohn is, with Jordi Cusidó, co-founder of HealthApp, a startup that is about to launch TCApp, an app designed to offer emotional support to patients with eating disorders. The idea came from Cusidó after studying and working in Silicon Valley for a while, where he was involved in a similar project. The company, with Jordina Arcal (head of sales) and David Amorós (technical director), has been advised by professionals of Hospital de Sant Rafel Mental Health Department (Barcelona),Alimmenta Clinic, nutritionist Maria Bosch and Cimne Tecnología, a startups accelerator.

With the app, patients can register the food intake, write their emotions and send questions and comments to their therapist, allowing a frequent interaction between both.

 In September a pilot test with ten teenage patients from Sant Rafel and Alimmenta will start. “The app does not seek to substitute therapy, it is a link between therapist and patient. We want to achieve a closer relationship and avoid patient’s isolation when they are not seeing the therapist” says Idelsohn, who is also Head of Bioengineering in CTM Technological Centre Foundation. “I believe in the project as future users are asking for it. We showed the app to young patients and they were enthusiastic about it. They encouraged us to go ahead with it. Therapists also believe in the project and they are of great support”, assures Idelsohn.

Sebas Idelsohn

HealthApp professionals use the Design Thinking method -originated in Silicon Valley- which takes into account the user’s opinion from the very beginning.

TCApp is been designed for the global market and it will be available in Spanish and English, as well as Catalan. Its business model varies depending on the client. Public organizations won’t have to pay for the app and the company will look for sponsors in the pharma industry, while private clinics will cover the price.

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HealthApp is also working in another app for chronic kidney failure, a project that has the support of the Althaia Foundation.

“Cancer patients should have access to quality and objective information about their disease”

Vicenç Garcia is an entrepreneur and engineer with an extensive background as international consultant for the pharma industry, having worked with companies such as Grífols and AstraZeneca. After 10 years abroad, he is now back in Barcelona preparing the launch of Appreciate, a mobile application that will offer quality content for cancer patients that can help them improve their quality of life: food recipes, relaxation sessions, etc. “Cancer treatment and diagnosis are relatively well covered, but there are lifestyle options that can help reducing treatment side effects and can improve the patient’s quality of life”, explains Garcia.

Vicenç Garcia

“Much information is published on the Internet about cancer but it is not easy to distinguish the quality contents. Besides, most of the information is written in English and not everyone can benefit from it. Cancer patients should have access to quality and objective information about their disease”, says Garcia, who is looking to partner with celebrities so the app is more engaging to patients. Despite the project is in the early stages, he has already received the support of well-known nutritionist Odile Fernández, a doctor and cancer survivor, who has authorized Garcia to use her website contents in the app.

Being the first to solve a problem, the key to success

We asked Frederic Llordachs, Doctoralia’s CEO and medical doctor, what the key to success is. Doctoralia is a global platform for doctor’s appointments created in 2007 by Llordachs and two other professionals, Albert Armengol (CEO) -a doctor himself- and developer David Díaz (CEO). “After years in the health insurance sector -Llordachs worked as a doctor before founding Doctoralia- I realized that finding a doctor online was really hard. In 2007 there wasn’t such service. We thought about solving this need and we started to work on the project. We didn’t borrow any money nor designed a business plan. And it worked out, also for the fact that we were the first ones”, says Llordachs.

Doctoralia have a presence in 21 countries, 11 million monthly users and a forecast of 2.5 million euros turnover for 2014. The fasting growing area for the company is Latin America, specially Brazil and Mexico. In 2011 the company launched an app that accumulates 600.000 downloads and has been included in the NHS Health Apps Library. Last year the website opened an online medical consultation service in which registered users can ask doctors for free. “With mobile technology Doctoralia has made a significant leap forward. Users have now permanent access to Internet and making a doctor’s appointment with the phone is more frequent than doctors think. In healthcare, users are clearly ahead of medical professionals”, assures Llordachs.

Frederic Llordachs

The entrepreneur is rather critical of the public and private health system’s ability to innovate in Spain. He recommends young entrepreneurs to “go abroad. There is a lack of clear understanding on the work of startups. I wish that local companies made an effort to help entrepreneurs in this country.”

Social Diabetes, the global app for diabetes patients

Víctor Bautista, founder of Social Diabetes, is another example of a project that was prompted by a need. “When I was diagnosed with type 1 diabetes I tried different apps, but I couldn’t find one that solved all my needs. With help from my doctor I designed Social Diabetes. Now it has all the functionalities that a diabetic patient needs to manage his or her condition with confidence”, says Bautista, a developer himself.

Official certification is not a necessary condition for an app to be successful, according to Bautista. “Certification opens doors to hospitals and insurance companies, but the fact that an app has an official certificate does not mean that it is better than another one. I have seen official health agencies demanding conditions that I don’t think are so important in an app, while some private companies are doing a great job developing apps without an official stamp”, he says.

Víctor Bautista

Social Diabetes was launched in 2012, it has been translated into 10 languages and it accumulates 55.000 downloads, with Spain as the first country and US the second one. It includes features such as telecare, virtual consultation, mobile location service (for children) and a tool to avoid nocturnal hypoglycaemia. It has just achieved the “medical device” European certification and it has the College of Physicians of Barcelona stamp. The apps is being used in public hospitals such as Lleida’s Arnau de Vilanova and Barcelona’s Sant Joan de Déu, where it has been adapted for paediatric patients.

Open-innovation mindset

Solving a customer’s need is therefore one of the keys to success for startups. Innovation expert Gary Broekhoven believes that Barcelona has a high growth potential in digital health given the quality of its research. However, like Frederic Llordachs, he thinks that Barcelona and Spain need a more open-innovation minds-set.  “In the last year”, says Broekhoven, “I have seen two or three really amazing projects that could have a significant impact on the lives of millions. It is in the hands of every person within the medical community from young GP’s, pharma and politicians to do something with it.”

Teresa Bau, Mobile Health Global editor

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