Digital health sector will slow down in 2023

Digital Products

Artificial intelligence (AI) applications are becoming more popular in the healthcare sector every year, but investment in digital health will slow down in Europe in 2023, according to investment firm Calista. According to France Biotech, the majority of health tech in 2023 will consist of biotech companies (32%), medical devices (24%) and digital health (23%).

As a result, the average amount raised in European funding rounds has decreased, reaching an average of €10 million from €20 million in 2022. The largest funding round was secured by Robotic Surgery. CMR Surgical raises 152 million euros, CMR Surgical raises 152 million euros. Distalmotion, 138 million euros. and Moon Surgical, €51 million.

Digital Products Advances in pharmaceutical technology

Although the amount raised fell, the number of investors increased by 23%. A total of 217 funds invested in European e-health in 2023, compared to 168 in 2022. European funds invest in France (24%), the UK (21.7%) and Germany (18.1%). “With the rise of AI in 2023, the pharmatech sector is also growing, both in terms of investment by the pharmaceutical industry (20%) and partnerships and acquisitions. We observe that the amount will exceed 100 million yen. (Aqemia, Owkin, Lunaphore for partnerships and Olink for acquisitions),” Calista pointed out. Although 2023 turned out to be a rather disappointing year, Kallista also identified 55 major e-health investors who have invested in more than 10 companies.

Digital Products uncertain macroeconomic situation

In its 2023 report on healthcare technology, FranceBiotech echoed Calista’s assessment that 2023 was not the best of the last three years for the sector. “Given the more uncertain macroeconomic situation in 2023 and the difficulty in refinancing some companies, there were more judicial liquidations in the year compared to 2019 and 2020. Therefore, 39 companies underwent judicial liquidation, with a net balance of 20 new start-ups,” the paper said. written by the company.

Digital Products 15,000 jobs

In 2023, the sector had a turnover of €1.4 billion and over 15,000 direct jobs. Employment in this field has increased by 40% in the past three years. Despite the difficult circumstances in 2023, three quarters of companies hired new employees, with an average of six new employees per company. Despite this, 11% of companies laid off employees. For digital health companies, this percentage rose to his 17%.

Digital Products remote monitoring

2023 was also a standout year for remote monitoring reimbursements, with remote monitoring solutions becoming the fastest growing product category, up 4 points (14%) compared to 2022. Computer-assisted diagnostics also accounted for 14% of digital health products, followed by telemedicine solutions, data analytics (10%), and care coordination software (9%). However, in the biotech sector, “half of pipeline products are focused on three major therapeutic areas: oncology (25%), infectious diseases (13%), and central nervous system (13%).” says France’s BioNTech. In medical technology, surgery (15%), oncology (10%) and neurology (9%) dominated the market.

This story has been translated from french universityIt is part of the Medscape Professional Network and uses several editing tools, including AI, as part of the process. A human editor reviewed this content before publication.

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“Artificial intelligence (AI) applications are becoming more prevalent in the healthcare sector every year, but investments in digital health will slow down in Europe in 2023, according to investment firm Calista.”
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