Healthcare sector has a tremendous future.
Why so won’t be a complicated question to answer, its mainly because ; it has understood, that prevention is better than cure( explains wearable double digit growth) and it has also found out that commercializing is better than prototyping ( explains why there are minimal of 5 innovations that surface up in healthcare every fortnight).
Traversing on the same path, Google has released packets on innovation in past and continues unfold its new ventures every now and then.
Google recently inked a deal with Dexcom, the diabetic sensor pioneer to develop a bandage like disposable continuous glucose monitor that eventually could change the face of diabetes treatment. This deal like Google’s all last deals have revolved around monitoring, and involve integration of Google’s electronic platform with Dexcom sensor technology.
The deal surfaced up last week, post release investors’ confidence reached new heights, as company (Dexcom) laid down a strong foundation of its plans of future growth. While its(Dexcom) last quarter revenue growth backed its overall claim of being at forefront of CGM developments, its deal with non-core players stood testimonial to the fact that it was leaving no stone unturned to scale up diabetic therapy.
Transactions contract terms includes, Dexcom shelling out USD 35 million , followed by another 65 million cheque on milestone basis, further sales post USD 750 million of products involved royalty payments to Google. This clearly indicates how serious the duo stands on shaping this product, going by the above fact which indicates that a lot of time and monetary commitments are given by parties in concern.
Rational to the deal as per industry analysts are stating the fact that, the partnership generates win-win situation for both Google and Dexcom. Dexcom who has been enjoying the last quarter’s results, where it beat Wall Street expectations would get an opportunity to increase its foothold in diabetic space, while Google gets its hand on one more healthcare innovation.
Going by the trend which involves Google inking deal with Novartis for contact lens, launching its wearable health band, it would not be wrong to say the search engine behemoth “Google” as we know now, would be identified as healthcare company devising products from future in coming days.
Off late there are good number of deals, partnerships, acquisitions that are happening amid non- core companies and healthcare focused enterprises, now, is this a move of having a bite of a market which is witnessing a much consistent growth in comparison to its counterparts, or is it just a coincidence of similar deals that have happened at a particular time of year. Now that’s an analysis we need to touch base with, but going by the current scenario it would not be wrong to say that each player from different industry is laying down one or other stone with healthcare carved on it, and is heavily banking on the same for its long term and short term returns.
For more details follow medical device trends : your online trend tracker