🩺 AI in Diagnostics + Europe Health Tech 200

Happy Monday 👋

Strained by a global shortage of radiologists and pathologists, healthcare systems are turning to AI-powered diagnostics to address a growing demand for diagnostic services. This technology assists human specialists, potentially reducing errors and improving outcomes. In the Health Tech landscape, we revisit the 2023 Europe Health Tech 200, highlighting the region's most promising startups in the health technology sector.

This Week's Topics

🩺 AI in Diagnostics. Exploring the role of AI in diagnostics
📊 Charts Spotlight. Tuberculosis incidence highest in Southeast Asia and Africa
📈 Diagnostics and Testing Index. Ends flat in the last three months
🏆 Europe Health Tech 200. Europe's most promising startups working in digital health, biotech, drug discovery, and analytics
📖 Annual Health Tech Outlook. 190+ pages of trends, insights, and data
💰 Health Tech Deals of the Week. Funding and M&A

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🩺 AI Diagnostics in Health

The world's healthcare systems are facing a critical strain on diagnostic capacity. A staggering 80% of healthcare providers grapple with radiologist shortages; similar challenges exist in other diagnostic fields like pathology. This strain is only expected to worsen with an aging population and rising chronic diseases.

Fortunately, technological advancements offer promising solutions. AI-powered diagnostics can significantly alleviate the burden on diagnostic specialists. These AI systems act as intelligent assistants, supporting specialists in making efficient and accurate decisions. This collaboration between human expertise and AI can lead to higher quality outcomes, reduced human error, and, ultimately, lower healthcare costs. By automating routine tasks and providing real-time insights, AI frees up valuable time for radiologists to focus on complex cases, improving efficiency and potentially reducing the impact of labor shortages.

Recent developments exhibit the growth in AI-based healthcare diagnostics. Carpl.ai and Philips are collaborating to offer a platform that integrates multiple AI algorithms for Brazilian physicians. GE Healthcare's AI-powered Revolution RT aims to personalize cancer treatment. Quest Diagnostics' acquisition of PathAI diagnostic assets strengthens its AI and digital pathology capabilities. Bayer and Huma Therapeutics launched a digital heart health screening tool in Saudi Arabia. These developments highlight the growing adoption of AI diagnostics across various healthcare settings.

📊 Charts Spotlight - Tuberculosis Incidence Highest in Southeast Asia and Africa

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Southeast Asia exhibits a tuberculosis (TB) rate of 234 per hundred thousand of its population, which is more than nine times higher than Europe's rate of 25, indicating a pronounced disparity. The region's economic growth has coincided with an increase in air pollution, contributing to the TB risk. Notably, Indonesia, with its high prevalence of smoking, significantly contributes to this heightened risk. The declining air quality in these countries further makes people more likely to contract TB. Meanwhile, Africa follows closely with a rate of 212 per hundred thousand population, where the prevalence of malnutrition and weakened immune systems amplify the vulnerability to the disease. Despite Europe boasting the lowest TB rate, concerns have risen regarding the potential increase in cases due to immigration from countries burdening TB, showcasing the interconnectedness of global health challenges.

📈 Capital Markets - Diagnostics and Testing Index Dips by 1%

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Over the last three months, HolonIQ’s Health Diagnostics and Testing Index displayed mixed performance, registering a decline of 1%. This contrasts with its growth over the preceding six months, marking a 12% increase and a 4% rise over the past year.

Industry-wide challenges, such as supply chain disruptions exacerbated by the pandemic, have contributed to the index's recent downturn. Shortages of personal protective equipment and concerns over supply chain stability continue to impact the sector. Additionally, the declining demand for COVID-related products and services affects industry performance. 

The recent dip in mid-April can also be attributed to earnings results, which were generally below expectations. Roche Holding AG experienced a 5% decline, attributed to challenges in overcoming a decline in COVID-19 product demand and a drop in sales of established cancer drugs. Abbott Laboratories, despite surpassing profit estimates driven by strong medical device sales, made a slight downward revision to the current quarter’s EPS estimate due to the continuing decline in COVID-19-related products, leading to a 6% decrease in stock value. Overall, annual guidance remains unchanged.

Looking ahead, the diagnostic testing market is set to advance with the increasing adoption of decentralized testing and integration of artificial intelligence (AI), promising more accessible and efficient testing methods. These trends signify a shift towards streamlined and effective diagnostic processes driven by AI-driven algorithms that enhance accuracy and convenience.

🏆 Europe Health Tech 200

The 2023 Europe Health Tech 200 is HolonIQ’s annual list of the region's most promising startups in digital health, biotech, drug discovery, and analytics.

A couple of cohort members attracted the attention of major MedTech firms. Sonio (a French AI-based ultrasound software provider) was acquired by Samsung Medison ( Samsung's MedTech arm) for $92M. Deciphex (an Italian software developer of preclinical applications, partnered with Novartis (a Swiss pharmaceutical conglomerate) to design an AI approach to discovering lesions within tissues.

📊 2024 Global Health Tech Outlook

HolonIQ's annual analysis of the evolving Health Tech landscape offers over 190 pages of in-depth insights on market data, investments, strategic shifts, and trends in healthcare services, pharmaceuticals, biotechnology, and medical hardware. Download the extract or purchase the full report.

💰 Health Tech Deals of the Week

HolonIQ actively monitors and tracks deals in the health industry across all regions of the world. Subscribe to our daily Impact Capital Markets newsletter to peruse the top deals for each day.

Funding

🩸 Latus, a US-based bioinformatics platform for genomics, raised $54M in Series A funding led by 8VC and DCVC Bio to accelerate the development of its clinical trial candidates.

🎗️ BridgeBio Oncology Therapeutics, a US-based biotechnology firm developing treatments for colitis and cancer, raised $200M in venture funding to develop its $200M precision oncology pipeline.

🧬 Delphia Therapeutics, a US-based genomic company that targets cancer, raised $67M in Series A funding led by GV to expand operations and its R&D operations.

🔬 Zenas BioPharma, a US-based developer of immune-based therapies, raised $200M in Series C funding led by One, NEA, Norwest Venture Partners, and Delos Capital to support its ongoing mid- and late-stage clinical development programs focused on immunology.

💊 Prologue Medicines, a UK-based proteomics firm, raised $50M in Series A funding to advance the DELVE Platform to craft a diverse medicine pipeline targeting immunological, oncological, and metabolic ailments.

M&A

🩺 Hologic, a US-based imaging and diagnostic device manufacturer, plans to acquire Endomag for $310M, a clinical platform utilizing magnetic fields to operate diagnostic and therapeutic apparatus.

💉 Kohlberg Kravis Roberts, a US-based investment firm, plans to acquire Healthium for $839M, a manufacturer of medical devices and consumable products.

IPOs/Other Offerings

🧬 Organovo Holdings, a US-based biotechnology company creating bio-printed human tissues, announced that it plans to raise $5.25M in a follow-on offering.

Thank you for reading. Have a great week ahead!
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