strategy

Digital Health

Milestone has invested in 21 Digital Health companies and has successfully exited eight of those investments (Medidata Solutions, CareGain, Premise Development, Octagon, MedPage Today/EveryDay Health, MapMyFitness, SkillSurvey and IntegriChain). Our Digital Health focus extends to companies which provide software and data services to providers, payors, biopharmaceutical firms, and patients. To be clear, Milestone does not invest in medical device or drug companies.

Because Milestone has a track record of success in this market and has built a network of industry contacts over a decade of investment activity, we are well positioned to help entrepreneurs achieve success.

The Digital Health market is undergoing disruptive change and dramatic growth due to healthcare reform, the healthcare cost crisis and the U.S. government’s massive investment in electronic health records. In addition, healthcare industry customers are embracing new cloud and mobile-based solutions which produce strong results for a relatively modest investment.

The growth drivers fueling Milestone’s strong performance and the Digital Health investment opportunity broadly have evolved over the past 10 years. The investment thesis behind our earliest investments in Digital Health (Medidata and Octagon Research Solutions) in 2002 recognized that the clinical drug development process was too expensive and too slow and that pharmaceutical companies would embrace new technology solutions and services. Milestone’s investments and expertise in the life sciences technology industry now extend across research, clinical development, sales, marketing and the supply chain (GQ Life Sciences, SmartAnalyst, Integrichain, SHYFT Analytics). In 2003, our focus expanded to include health insurers and consumers as Milestone invested in CareGain, taking advantage of the consumer-directed healthcare reforms built into the Medicare Modernization Act of 2003. Beginning in late 2006, we began to invest in health information services companies (Dlife, Vitals, Medpage/EverydayHealth) which addressed the needs of physicians and patients. In other areas, such as solutions for providers and laboratories, we found additional high return investment opportunities (SkillSurvey, Premise, eHealth Technologies, Cureatr, Vitals, and Halfpenny). And lastly, the opportunity to provide software and data solutions to payors continues to be one of the most exciting and fruitful investment areas for us (CareGain, Vitals, Halfpenny and dLife).

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