Print“Although GlowCaps are sold directly to consumers, the real target is not necessarily the patient, but pharmaceutical companies and managed care providers who stand to benefit from prescription compliance.”
Vitality’s GlowCap seems like a simple enough device. It sits on top of a pill bottle and begins to flash a light to signal it’s time to take a pill. If that doesn’t work, the GlowCap begins to ring like a cell phone. If that still didn’t get noticed, it will call the patient’s phone with a reminder to take the medicine. It will also call the doctor and whomever you have designated, to report your compliance. When it is time for a refill, it will automatically contact the pharmacy. Patrick Soon-Shiong thinks it’s a pretty good idea. The surgeon and entrepreneur, flush with cash after selling his company Abraxis Bioscience to Celgene for $2.9 billion, announced February 2 that he is buying Vitality for an undisclosed amount. Vitality said the price represents a 10-fold return on investment to its shareholders.
As wireless applications become ubiquitous, digital health technologies such as Vitality’s are being developed that aim to lower the cost of healthcare and promote healthy behavior.
The Cambridge, Massachusetts-based startup developed its GlowCap device to address the growing problem of medical compliance. Patients often don’t take their medication as prescribed. The company says its device raises patient compliance from the industry average of 50 percent to more than 85 percent. Although GlowCaps are sold directly to consumers, the real target is not necessarily the patient, but pharmaceutical companies and managed care providers who stand to benefit from prescription compliance.
“Our country needs a healthcare system designed to keep people healthy rather than waiting for them to get sick,” says Soon-Shiong. “As part of this goal, medication adherence is key. However, many people do not take their medications as prescribed which leads to unnecessary sickness and costly hospitalizations. GlowCaps addresses this problem brilliantly making the medication packaging smart.”
Vitality is already enjoying success with the GlowCap. The company has an agreement with AT&T to provide the wireless network connection for its device. With Soon-Shiong’s backing, it will be able to expand its product line to other wireless products that promote healthier consumer behavior.
“Vitality’s suite of connected health and wellness products dovetails perfectly with Dr. Soon-Shiong’s vision and expressed goals,” says David Rose, CEO of Vitality. Vitality’s co-founders will continue their current roles in the new company with David Rose as CEO and Joshua Wachman as president.
February 03, 2011
http://www.burrillreport.com/article-biotech_billionaire_buys_digital_health_company_vitality.html
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