Nokia Expands Digital Health Business Through Partnership With Finnish Hospital
Nokia has announced a partnership with the Helsinki University Hospital (HUS) in Finland, and the collaboration’s first project will focus on remote monitoring solutions for patients suffering from neurological conditions. This move reflects Nokia’s desire to expand past consumer fitness wearables and into clinical solutions, according to senior leadership.
Nokia made the move into the digital health space earlier this year with the $191 million acquisition of Withings, a French developer of wearable health and fitness devices. Rajeev Suri, president and CEO of Nokia, commented in a press release that digital health is an area of strategic interest to Nokia, and will allow the company to “strengthen their position in the Internet of Things (IoT).” Former Withings CEO Cedric Hutchings now leads Nokia’s Preventative Health and Patient Care teams and is VP of Digital health.
Nokia is looking to participate one of the world’s largest growing markets, the “New Health Economy,” according to a report by Trefis analysts, who wrote that the “health sector’s center of gravity is shifting towards consumers,” especially in the ongoing treatment of chronic disease, such as heart disease and diabetes.
Collaboration with HUS will allow Nokia to “extend their span of care” from consumer-based products into research and development in the clinical space, said Hutchings in a press release. The neurology department at HUS is the largest in Finland, and Nokia plans to work directly with clinicians and patients to improve the quality of Nokia’s remote monitoring solutions.
“At HUS, we see tremendous value in collaborating with innovative companies like Nokia to help the development of research-based knowledge into technologies that can drive more effective personalized care for our patients, said Nina Forss, head of the Department of Neurology at HUS. “The department of Neurology at HUS is acknowledged worldwide for providing the best acute stroke care in the world. This new collaboration reflects our continued commitment to excellence in research.”
Trefis analysts report that Fitbit, Apple, and Chinese vendor Xiaomi command 60 percent of the smart wearables market, with smaller players controlling the remaining 40 percent.
“With its brand reputation and superior technology, Nokia should be able to capture a sizeable market share in the smart wearables segment…which is a huge growth opportunity for Nokia” if they can develop devices with features ahead of their competition, said Trefis analysts.
One way to add value to digital health solutions that already are flooding the market is an approval from the FDA. Once viewed as a hindrance, newer entrants into the healthcare space — such as Fitbit, Verily, and Philips — are seeing the advantage of marketing products with a credibility established by the FDA. Fitbit, for example, is looking to maintain its foothold in the wearables market by working closer with regulatory agencies.
Another way to establish value is by inking deals with hospitals. Medtronic, Johnson & Johnson, GE Healthcare, and Philips all have been partnering with healthcare systems as a way to improve access to their devices while giving them a chance to prove their value in saturated markets. Boston Scientific recently revealed an ongoing collaborative relationship with the Mayo Clinic, which plans to deliver R&D projects into human trials beginning this year.