MEPTEC Medical Technology Conference The Quantified Self: New Mobile Healthcare Technology for Consumers



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MEPTEC Medical Technology Conference The Quantified Self: New Mobile Healthcare Technology for Consumers Tony Massimini Chief of Technology Semico Research Corp. Sept 18, 2013 tonym@semico.com

Outline What is the Quantified Self? The Need for Healthcare Health and Fitness Market Aging in Place Technology: MEMS Leveraging Consumer Electronics Future Development 2

About Semico Research Premier Semiconductor Market Research & Consulting Company IPI report IPI Model accurately predicts semiconductor revenue inflection points four quarters in advance Map Model: Comprehensive, online, end market database Research Portfolios Semiconductor Manufacturing: Wafer Demand, Fab Database Semiconductor IP and Design ASICs/SoC s MEMS Analog» Data» Analysis 3» Knowledge

The Quantified Self Goal: Aggregate data about a person s day-to-day activities to enact change. Pervasive person-centered healthcare Passive sensors will be integral Wearable sensors take advantage of MEMS The human body as a personal network Transmit as many metrics as possible The Internet of Things extended to people Derive context and knowledge from data 4

Healthcare - Quantified Self Source: STMicroelectronics, EDN Internet of Things Health Consumerism Quantified Self Source: University of Virginia Engineering, Design World 5

Healthcare Market How Did We Get Here? Source: Semico Research 6

Healthcare Market - Not Just a Fad United States Health Expenditures in 2010 860 million chronically ill worldwide By 2050, 21% of population will be over 65 25% of national healthcare spent on diabetes & obesity ~366 million people had diabetes in 2011, will increase to 550 million by 2030 Source: Kaiser Family Foundation, Health Affairs 2012 7

Aging Population Life Expectancy at Ages 65 & 85, by Gender, 1900 2009 8

Healthcare Challenges and Goals Proactively engage consumers to monitor and manage their conditions Encourage consumers to integrate common healthcare solutions into daily life Mobile healthcare: use consumer s social and personal behavior to create healthy lifestyle A system focused on monitoring a patient and use personal data to create Big Data cloud system Personal use, remote care provider, or hospital Create healthier population to avoid acute care hospitalization and reduce healthcare costs 9

Healthcare Market Drivers & Trends Primary Care Shortages Changing Demographics Enhanced Motion Tracking Health Consumerism / Quantified Self Crowd Sourcing Gamification 10

Health and Fitness Market Home Portable Medical market, the cost efficient segment Apps and devices provide users with the tools and understanding to make their own medical decisions Personal fitness and sports Chronic care management Consumer can measure their own vital signs and fitness levels Wearable devices, smartphone 11

Markets Wearables & Big Data 12 Source: Apple, Patent # US 8374825 B2

Markets Fitness / Activity Trackers Fitbit Basis: Optical Heart Rate Monitor Accelerometer Temperature sensor USB Jawbone UP: MotionX accelerometer ValenCell PerformTek: Accelerometer Optical Heart Rate Monitor BodyMedia: Temperature Accelerometer Withings: Accelerometer 13

Markets - Sports Babolat Racquet 4iiii Innovations Inc. O-Synce Heads-Up Display adidas micoach Product Line Bemeister Complete Tracking System 14

Markets - Wellness irhythm Zio Patch catches cardiac arrhythmias 14 days continuous monitoring Wahoo Fitness Blue HR Monitor Dexcom Continuous Glucose Monitoring System Body patch + monitor 15

Markets - Clothing AiQ Smart Clothing Textronics Heapsylon Electric Foxy Moticon Nuubo Source: Textronics Source: Electric Foxy Source: The Hong Kong Polytechnic University, Sciencedaily 16

Healthcare Market - Forecast End-Use Healthcare Appcessory Units Source: Semico Research 17

Aging in Place Solving Medication Errors 98% adherence rate when patients use in-home automated medication dispensers. - Administration on Aging Patients are more willing to use technology over medication (90% to 66%). - Digitas Health Virtual pharmacist counseling identified ~6 medication problems per patient and was able to resolve 93% of them. Medication errors are the most common types of medical errors - AoA 1.5 million preventable adverse drug effects in North America annually. cost $3.5 billion (2006) Source: ER-Card / University of RI College of Pharmacy

Aging in Place How Active Are The Elderly Percentage of People Age 45 and Older Who Meet 2008 Federal Guidelines Aging in Place is more than just monitoring.

Aging in Place Driven by Mobile Units in (M) 76% of small- and medium-sized doctor and dentist firms planning on upgrading to tablets for their system. American Medical Association survey (2012) The total mobile market will reach 2.5 billion units in 2017. almost 6 times the size of the computing market by 2017. The easiest way to get health information to consumers via mobile apps. 3000 2500 2000 1500 1000 500 0 2012 2013 2014 2015 2016 2017 Tablets Smartphones Feature phones Source: Semico Research

Number of Elderly Who Used Nursing Services in 2 YR Frame (M) % of Total Elderly (US) Millions of Elderly in US % in Nursing Home for 1 day w/i 2 YRs Aging in Place Limiting Nursing Home Stays US Percentage of Elderly in Nursing Homes Within 2 Year Frame 60 20% Employee Benefit Research Institute (EBRI): Percentage of seniors (>65 years) who needed at least one night in a nursing home during a period of two years 50 40 30 20 10 0 2000 2010 2020 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 6% in 2000. 8.5% in 2010. At current rate, nursing home stays increase 2010: 3.4 M 2020: 6.0 M 7 6 5 4 3 2 1 Elderly Population % in Nursing home 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0 2000 2010 2020 Number in Nursing home % in Nursing home Source: Semico Research 0%

Aging in Place Increasing Elderly Net Worth Nursing homes put monetary strain on the average family Nursing home stays erode net worth Greater dependence on government programs.elderly staying in own home has financial benefit Median Household Wealth > 180 days 31-180 days < 30 days Never $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 Source: EBRI, Semico Research

Unit Shipments in (M) Revenues in USD (M) Aging in Place Remote Monitoring Forecast Total revenues for remote monitoring systems will reach over $20 billion by 2017. 120 100 $25,000 $20,000 80 60 40 20 $15,000 $10,000 $5,000 0 2011 2012 2013 2014 2015 2016 2017 $0 Units Revenues Source: Semico Research

What are MEMS Micro-Electro-Mechanical Systems Fabricated with semiconductor technology 20 mm to 1 mm Mechanical element paired with an ASIC Sensors Accelerometers, gyros, magnetometer, pressure, etc. Advantages Small size Lower power consumption Rugged and reliable 24

MEMS ASPs Falling prices driven by high volume consumer markets Smart Phones drive technology and innovation Other markets take advantage of trend Source: Semico Research 25

MEMS & MCU Ecosystem Lines indicate formal relationships, e.g. development and eval kits

Leveraging Consumer Electronics CE low cost and ease of use High volumes drive component cost down Smartphones, portables and wearables driving innovations: sensors and apps Improved motion tracking Sensor fusion enabling Context awareness Complex algorithms derive intelligence from data Increasing connectivity Low power and low cost wireless 27

Summary The Quantified Self Internet of Things and People More sensors monitoring all activities Wealth of data that needs to be managed Cloud interaction Smartphones, Tablets & PCs become personal health and fitness hubs Interact with wearable devices appcessories Sensors enabling new ecosystems Fitness, Wellness, Smart Homes, Aging in Place Engaging and empowering consumers to improve health and manage medical conditions Lower health care costs 28

Thank You Recent Semico Reports: NFC: Security at Hand Mobile Healthcare: New Technology for a Healthy Lifestyle Aging in Place: The Internet of Things for the Golden Years MCUs and MEMS: A Partnership for Growth More information contact: Rick Vogelei 602-997-0337 / rickv@semico.com» Data» Analysis» Knowledge 29