ABGSC on the Digital Health industry: “Interest in digital solutions should only increase”

ABGSC analyst Oscar Rönnkvist shares his thoughts on the Digital Health industry, ahead of our upcoming virtual Digital Health Seminar.

 
Oscar Rönnkvist is an Equity Research Analyst in ABGSC’s Stockholm office, covering digital-focused companies across multiple sectors. In an interview, we asked him for his thoughts on the digital health industry.
What trends are currently driving the digital health industry?
“The healthcare sector is currently one of the least digitalised sectors and is in great need of efficient solutions. Digitalisation could help free up resources and enable medical practitioners to better cope with the demands and pressures of their roles. We believe the combination of financial benefits to the industry and the humanitarian benefits to those in need of care, generates strong incentives for an increased share of digital solutions”.
What are the challenges at the moment?
“The customers that digital health companies typically target are local authorities and municipalities, which tend to be less ‘fast-moving’ than, for example, private companies. Furthermore, there can often be regulatory obstacles, since the data involved in digitalisation is usually sensitive”.
What macro events will you be keeping an eye on over the next few months? Any specific indicators?
“It will be interesting to hear the different companies talk about the macroeconomic implications for their respective businesses. Given that I believe the sector is generally quite resilient to both inflation and a weaker consumer, I will mainly be keeping an eye on the political discussions regarding the topic”.
What are the current opportunities within digital health?
“A common denominator in the space is low market penetration, implying that there will be significant room to grow, for some time to come. Following the COVID-19 pandemic, with all of its implications, I believe the interest in digital solutions should only increase”.
What can we expect from the seminar?
“First of all, we are eager to hear more about the companies presenting and how they are tackling the challenges they are trying to solve. Second, we hope to hear presenters’ views regarding trends in the sector and to get some additional insights from the different perspectives across the companies. Finally, given that we are in a time of macroeconomic challenges, with inflation rates at levels not seen in many years, coupled with, for example, sky-high energy prices and slowing consumer spending, we would like to get additional insight regarding the implication of these forces for each of the companies, and ask the about the opportunities they think could be generated in their sector”.
ABGSC’s virtual Digital Health Seminar will be held on 21 September. Attending companies will include Carasent, Tobii Dynavox, Careium and Physitrack.
 
ABGSC clients can access the full agenda for the seminar here.
RSVP: invitations@abgsc.se
*Please note, the seminar is open to ABGSC clients only.