Biopharma Companies See Massive Potential in Connected Health Despite Low Adoption Rates
Key Insights
A new Capgemini (search) study reveals 80% of biopharma companies believe connected health products present greater market opportunities than traditional drugs, yet only 20% have moved beyond proof of concept.
Connected health offerings, including digital therapeutics and software-as-medical-device, are projected to grow 40% over the next five years, potentially contributing to 13% of companies' total revenue.
Neurological conditions, rare diseases, and immunological disorders are identified as primary therapeutic areas for connected health development, with security compliance and regulatory challenges cited as major implementation barriers.
Despite recognizing enormous market potential, the biopharmaceutical industry's execution in connected health technologies remains notably behind its ambitions, according to a comprehensive new study by Capgemini (search). The research, surveying 523 life science executives from 166 companies across the US and Europe, reveals a striking disconnect between strategic vision and practical implementation.
Current Adoption and Growth Projections
While 80% of biopharma companies acknowledge that connected health products could exceed their traditional drug business in market opportunity, only 16% are currently testing or have launched connected health technologies. However, the sector anticipates significant growth, with connected health offerings projected to expand by 40% over the next five years and account for 13% of total company turnover.
Priority Therapeutic Areas and Applications
The study identifies key therapeutic focus areas for connected health development:
- Neurological diseases (including multiple sclerosis, Alzheimer's, and epilepsy)
- Rare diseases
- Immunological conditions
Leading applications in development include:
- Remote patient monitoring systems
- Digital biomarker applications utilizing wearable biosensors
- AI-enabled diagnostics and preventive medicine solutions
Implementation Challenges and Organizational Readiness
The transition to connected health faces significant hurdles. Security compliance emerges as the primary concern, with 54% of executives citing software security vulnerabilities as their top challenge. Additional barriers include:
- Complex regulatory requirements differing from traditional therapeutics
- Limited organizational capabilities (less than one-third possess required digital and technological expertise)
- Insufficient dedicated resources (only 21% maintain specialized connected health centers)
Strategic Outlook and Industry Perspective
"Most biopharma companies are still developing their connected health models, and overall maturity of connected health portfolios remains low," notes Capgemini (search)'s analysis. This observation is supported by the fact that 84% of executives report their companies are still in the strategy development phase.
Olivier Zitoun, Capgemini (search)'s global life sciences lead, emphasizes the immediate opportunity: "The demand and the opportunity for improved patient outcomes is there today, and a number of technologies hold the promise to revolutionize treatment pathways and patients' interactions with healthcare providers."
Path Forward
To capitalize on connected health's potential, organizations must address several key areas:
- Develop specialized digital and technological capabilities
- Build robust security frameworks
- Create scalable infrastructure for connected health solutions
- Establish integrated approaches to portfolio management
The industry stands at a crucial junction where strategic vision must be matched with practical execution to realize the full potential of connected health technologies in improving patient care and treatment outcomes.