HealthTech HotList: Round 2
Broadly speaking, I think there are two types of businesses in the HealthTech world, Need-to-haves (NTHs) and that’s-pretty-cools (TPCs). The NTH’s are usually your B2B obviously useful startups that objectively make the process of providing or receiving healthcare simpler, faster or less costly. This can be anything from claims processing to electronic health record data management. Stuff that is progressing the healthcare system but not necessarily going to catch your eye as a consumer. Then there are the TPCs which are typically D2C and seek to romanticize everyday healthcare routines to promote better health outcomes via improved transparency, simplicity and personalization of care. These aren’t necessarily life changing innovations but they make existing processes more enjoyable and promote a greater focus on personal health management. I am, after all, a consumer, and for obvious reasons the TPC segment is more fun for me to research. So, this week we’re diving into two TPCs featured on the HealthTech HotList. Let’s get into it.
#1 ~Hero~ https://herohealth.com/
More than 131 million people or 66 percent of all adults in the United States, use prescription drugs. Those numbers are heavily skewed towards older people and those with chronic conditions, with 91 percent of those aged 80 and older taking, on average, 22 prescription drugs annually (87% of the 65–79 age range takes 20, on average). Keeping track of which medicines to take and when can be a real challenge for that age group, and I can tell you from experience with my grandparents that it is virtually impossible to get them to maintain adherence on their own. Painstakingly separating each pill into one of those color-coded pill boxes each week is essentially impossible for older folks, and as a result, daily doses are skipped leading to increased doctor visits, higher costs and, unfortunately death in some instances. In fact, according to the World Health Organization, around 50% of medication is not taken as prescribed. So, Hero created a solution that makes it easier to follow your medications as prescribed with a beautifully designed and ultra functional in-home pill dispenser with a connected app that allows caregivers and family members to remotely monitor patient adherence.
How it Works: I really don’t have a lot to write about How it Works because it’s extremely intuitive and user friendly. Simply download the app and input your (or your parent or grandparent’s) pill regimen data. Then, dump up to a 90-day supply of 10 different prescriptions into the separated pill cartridges in the device and Hero will alert you with a pleasant ring when it’s time to take your medicine. Coordinating with the app, caregivers then receive late, skipped or missed dose notifications, detailed medication information, and daily and historic medication adherence tracking to ensure the highest quality of care. Anecdotally, my parents would constantly (read: everyday) call my grandparents to remind them to take their medication. With Hero, caregivers are provided real-time updates which reduces the anxiety, stress and worry over whether your loved ones are staying on track.
Why I Like It: Existing pill management options are just flat out terrible. The tops require significant strength and dexterity to maneuver and individually parsing through multiple medications all of which look alike is a recipe for disaster. In fact, even in some nursing homes there is a 16–27% error rate in medication disbursement. Hero’s automated dispenser is basically a set-it-and-forget-it (pun not intended) innovation that takes the guesswork and physical toll out of remembering to take the right medication. And it looks great too. There are other automated options on the market but they aren’t built with aesthetic in mind and aren’t very intuitive. Hero’s device is like the Keurig of pill management. It literally looks like a Keurig, is as easy as a Keurig, and fits seamlessly on the kitchen counter like a Keurig. (see exhibit 3) The market for Hero is also pretty sizable. Around 15% of the US population or 50 million is currently above the age of 65, and if you’ve heard anyone talk about the healthcare industry in the United States, chances are you’ve heard the phrase “aging population” or “Baby Boomer generation aging” as a main growth catalyst in the sector. Hero capitalizes on the trend well, and its applicability will only rise as more and more folks become smart-phone proficient in the coming years. By 2030, according to the 2020 census the entire Baby Boomer generation of ~80 million will be aged 65+. Including current 65+ers, I think it’s reasonable to assume that 100 million Americans will be 65+ by 2030. So, assuming that all people above the age of 65 use some form of pill management, if Hero can capture just 1% of the market or 1 million folks, at $99.99 initiation + $29.99 monthly subscription, you’re looking at ~$460 million in revenue annually. Super rough estimates, but hopefully gives you an idea of the potential for Hero.
Dollars and cents aside, above all, I really love that Hero allows older folks to maintain their dignity, independence and autonomy. Oh, and by the way, Hero is HIPAA compliant for all your data— pretty much a prerequisite for admittance to the HealthTech HotList.
#1 ~Rootine~ https://rootine.co/
I got an Instagram ad for this one. Kudos to Facebook’s algorithms but also I think I made it easy for them — my search history is like 80% HealthTech at this point. Also if you remember from last week, I promised I’d get into Rootine at some point — here we are.
It seems like these days everyone is taking some sort of vitamin or supplement to combat both diagnosed and undiagnosed ailments. Demand has grown so much that the market for vitamin and supplement manufacturing in the US is expected to reach $36 billion in 2021. 282 million Americans or 86% of the population reported taking some sort of supplement according to a recent online survey conducted by The Harris Poll on behalf of the American Osteopathic Association (AOA). But many if not a majority of those products consumed were unregulated (ie not FDA approved nor adequately tested for efficacy and safety). Also interestingly, only about a quarter of those taking vitamins or supplements received test results indicating they have a nutritional deficiency. In those cases where a test was not conducted, the alleged benefits were often unproven and in the worst cases even harmful. Recognizing the disconnect, Rootine launched to solve both problems with a personalized vitamin and supplement regimen based off your body’s specific DNA that is developed following the FDA’s Current Good Manufacturing Practice (cGMP) regulations making sure that the product is safe for use, and that it has the ingredients and strength it claims to have.
How it Works: Hero was simple hardware, Rootine is not. The process starts with clinically-validated health tests to identify your unique nutrient needs based on nutrigenetics, metabolomics and your biology. If you’ve never heard of either of those before, no worries I hadn’t either. But my understanding is that nutrigenetics is basically identifying slight hereditary genetic variations and uncovering how they impact your body’s ability to absorb and breakdown nutrients. Metabolomics is the practice of understanding how certain nutrients interact with your body. From Rootine’s website, “Common variations in your genetic code impact how you absorb, distribute, metabolize, and excrete key vitamins, minerals, and other nutritional substances. These slight variations are called single nucleotide polymorphisms (abbreviated “SNPs”) and alter the way the gene product is built. Slight variations in the corresponding enzymes and receptors adversely impact their function. The Rootine DNA Test analyzes 50+ gene variants that are research proven to impact nutrient needs.” So, yeah what I said… The tests are easy enough — you can either take an at-home test or submit existing data from 23andMe or Ancestry.com. Tests are then analyzed in Rootine’s licensed medical-genetics laboratory certified ISO 9001, 15189, and 22000 (fancy FDA code that essentially says the tests meet FDA quality standards) and boast 100% genetic testing accuracy. Based on your results and depending on what vitamin and mineral deficiencies you may have, Rootine designs daily tailor-made microbead vitamins to meet your individual needs. What are microbeads? Another good question. If you were to look at a vitamin bottle in your home, you’ll likely see RDA (recommended daily allowances) and DV (daily value) figures included with the bottle’s nutritional information. Those values are directionally helpful, but deal in averages for the population and can be misleading. Every person has a sweet spot for their optimal daily intake of vital nutrients determined by a variety of factors, including genetics, current nutrient status, age, weight, health status, diet, lifestyle and more. Rootine’s microbeads provide slow-release precision dosing of each nutrient to the microgram or milligram and are specific to each individual person. Finally, using AI/ML technology, Rootine continuously tracks and reformulates the dosage so that you’re always receiving the optimal quantity and variety of nutrients. Tldr; take DNA test, receive personalized vitamins and supplements in a handy daily packet.
Why I Like It: I take vitamins C and D, a probiotic and Omega-3 fish oil most days because my mom saw a doctor once that told her to take them. Of course, being the great mother she is, she instructed me to take them as well and now I get bottles of vitamins in my stocking every Christmas. Granted, we have much of the same DNA but we live entirely different lifestyles, our diets are diametrically opposed and I’m like 30 years younger. There’s just no way that the vitamins and supplements her body requires are even remotely similar to mine. I’m not alone in taking medical advice from someone unqualified to give it. According to the same American Osteopathic Association survey referenced above, 61% of Americans choose which vitamins and supplements to take based on their own research or on recommendations from a friend or family member. Moreover, 13% choose their vitamins based on what looks cool on the shelf and most alarmingly, 6% go off what social media influencers endorse. I do believe that there can be health benefits of taking some vitamin-C when I feel a cold coming on or vitamin-D when I’m stuck in my apartment for days without sunlight, but the routine ingestion of the same miscellaneous supplements that everyone takes seems pretty silly. Every body is unique and as such requires unique nutritional boosters. Rootine, as far as I could tell, is the only business offering clinically-validated health tests and designing the perfect combination of nutrients for each unique consumer. And I am completely sold on it’s value proposition. The main obstacle I see in their path to exponential growth in the $36 billion dollar vitamin and supplement market is reeducating the masses and quelling the loads of misinformation and blanket generalizations about the supposed catch-all health benefits of vitamins and supplements. If they are able to do that, I see a clear path for Rootine to quickly start stealing market share.
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That concludes this week’s HealthTech HotList — thanks for making it all the way to the end. We’ll be back next week with two more HealthTech startups that you should know and care about.
