Last week, the trade associations LIF, Swedish Medtech and SwedenBIO presented an action plan to strengthen the competitiveness of Swedish life science. As Sciety meets many companies that develop the healthcare sector, we think that it is extra interesting that one of the three topics in the plan is to introduce innovative treatment methods.
The report presents four recommendations within this field that Sciety considers extra important to improve the climate for entrepreneurs and investors in innovative growth companies shaping the healthcare sector.
- Give university hospitals a clear mission to introduce new treatment methods at an early stage and to evaluate their clinical effect as well as consumer experience and health economics.
- Develop new models for compensation in favour of innovations with long-term benefits. One example is to avoid that innovations are rejected due to large initial investments.
- Clarify in the healthcare act that all caregivers have to ensure that healthcare data can follow the patient in the whole healthcare process.
- Turn public procurement into a strategic tool for innovation by focusing more on value and less on price. For example, open up for moving funds between departments or organisations to create incentives to invest in treatment methods that reduce the total healthcare costs.
“We often meet companies with solutions that have the potential to generate major health benefits and financial benefits for the society but where compensation models or incentives for adoption are missing. In many cases, we have had to decline funding propals from companies, just because of uncertain procurement processes or inadequate models for compensation”, says Andreas Lindblom, CEO of Sciety.
“Another important aspect in our evaluation of companies is evidence. It is not uncommon that the companies we meet have had a difficult time to test their solutions in the healthcare at an early stage, which causes problems in product development as well as funding since many investors assess that the risk is too high”, says Andreas.
It is important to remember that the problems with shortsightedness and unfavourable incentive structures that the report hightlights are neither unique for the healthcare sector nor the public sector. At the same time, we have a lot to gain from facilitating the work of entrepreneurs and investors in the sector. Besides the financial potential, the life science sector can make a big difference for a lot of people.
“In absence of the innovations within pharmaceuticals, bio technology and medical technology during the past decades, many of today’s treatable medical conditions would instead lead to reduced quality of life, more hospital nights, more persons unable to work, and for some patients, an early death.” – Quote from the report, translated by Sciety.
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Sciety is an investor network that wants innovations that make a difference to reach their full potential and create value. We select unlisted growth companis within life science and prepare them for investments from our members.
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