“A company’s odds of success are better the closer they can get to their market,” argues Stephen Hurwitz, a thought leader in the Canadian venture capital industry, recognizing that the proximity to a VC-tech hub can help the success rate of Canadian startups.
A socialized healthcare system, Canada’s market is fragmented by province and type of care – most primary and emergency care is free for residents whereas specialty care, prescription drugs, long-term and in-home care amongst others, are not covered by the Canada Health Act. This system, while making healthcare much more accessible and affordable for citizens, leaves large gaps in coverage and therefore plenty of niches for companies to address current deficiencies with new products and technologies.
Many Canadian entrepreneurs cite a lack of resources in the country’s venture capital industry, which is also younger than its American counterpart. A lack of funding for startups translates into companies addressing immediate needs instead of long-term impending issues, early exits or premature product launches, and there is greater difficulty in attracting a talented workforce.
A report published by MaRS, that compared funding and acquisitions in both countries, indicated that in the past five years, 183 high-tech Canadian companies were acquired compared to 2,300 U.S. companies. Of these 183 companies, almost 70% were acquired by U.S. corporations. Additionally, the average exit valuation for Canadian companies was approximately $100 million, compared to a U.S. valuation of $384 million.
To address these challenges and create a more favorable environment for foreign investment, local governments have pledged hundreds of millions of dollars to spur innovation, not only in the technology sector overall, but in healthcare as well. Two prime examples of this are British Columbia and Ontario – Vancouver’s Interface Health Society runs the IHX Challenge for health tech startups and MaRS hosts the HealthKick conference. Additional incentives include reformation of Section 116, which once made investing in Canadian firms difficult, and a new startup visa, which entices companies to establish themselves within Canadian borders.
Gaining momentum and attracting more social and financial capital has allowed both tech hubs and health startups across the country to flourish. Perhaps due to the segmented markets and the limitations of public health insurance, EHR systems have not been a priority, instead allowing for greater focus on digital health solutions, diagnostics and technology. A significant emerging trend is making care more accessible to citizens, whether through remote monitoring, diagnostic apps or telehealth.
Here is a list of Canada’s top 20 digital health companies to be on the lookout for:
EASTERN CANADA
1. Cogniciti
A growing number of developed countries are now struggling with the current and impending healthcare costs of aging populations. Early detection and treatment can both have a significant effect on reducing public expenditure, as well as reducing patients and families’ costs by delaying in-home caregiving. Based on clinical data, this brain health assessment platform measures various cognitive factors allowing for the early-detection of dementia. The collection of this personal data informs training modules which can be used to improve mental faculties, to slow the effects of aging on the mind and can be used as a coping tool.
Founded: 2010
Founders: Veronika Litinski (COO)
Category: Diagnostics
Funding: Undisclosed
Why you should pay attention – Benefitting from a recently announced commitment of over $100 million dollars to the Canadian Centre for Aging & Brain Health located at Baycrest Health Sciences, Cogniciti will be able to harness the technology and resources often unavailable to such early-stage companies, particularly in such a fragmented field.
2. Eyeread
While developed to catalyze and improve children’s literacy education, Eyeread’s technology tracks eye movements as well the user’s long-term progress. Modules are made consecutively more difficult with the introduction of adaptable algorithms and in-depth analyses of user performance giving caregivers a quick overview of strengths and weaknesses without having to wait one year for an appointment with a child psychologist. Eyeread is expected to hit the market in early 2016.
Founded: Unknown
Founders: Leah Skerry, Julia Rivard & David Sharpe
Category: Diagnostics, Technology & Treatment
Funding: Undisclosed
Why you should pay attention – The Eyeread technology has notable potential to assist in the diagnosis of learning disorders – the platform not only tracks eye movements, but also has voice recording and interactive capabilities. If the API is ever opened to medical software companies, the platform can move well beyond diagnostics to become integrated into treatments and rehabilitation therapies. Additionally, the early detection and treatment of such conditions can mitigate the negative consequences over a person’s lifetime and lower other related expenditures.
3. Figure 1
Think of Figure 1 as a social platform, a crossbreed with elements of Facebook and Pinterest, built for doctors to share images, opine on conditions and discuss cases while keeping patient data protected. Dedicated to creating an expansive library of medical images and conditions, the platform could prove to be an invaluable database for education/ training purposes as well as for practicing physicians as its content is crowdsourced and curated.
Founded: 2012
Founders: Gregory Levey (CEO)
Category: Diagnostics & Patient Care
Funding: $5.7 million
Why you should pay attention – Particularly beneficial for the Canadian health system, Figure 1 has the ability to reduce the need for referrals, thereby minimizing patients’ out-of-pocket costs and time in treatment. In an overburdened system, the image-sharing platform can reduce costs for all stakeholders involved and in the future, if available to patients, may act as a supplementary personal health record for certain chronic conditions. The app already hosts about 1 million image views daily and has a community of over 125,000 professionals all vetted by Doximity.
4. GeneYouIn
A “personalized medicine company”, GeneYouIn has developed a DNA testing service that allows physicians to predict a medication’s efficacy on a specific patient and thereby make a further informed prescribing choice. PillCheck, their decision support system, interprets each individual’s gene variations responsibility for drug absorption and metabolism and recommends medication. Outsourcing such testing can minimize barriers for smaller practices offering such a personalized level of care. Integration into larger provider systems can reduce costs associated with malpractice or improper subscribing.
Founded: 2012
Founders: Ruslan Dorfman
Category: Diagnostics, Technology & Patient Care
Funding: $150 thousand
Why you should pay attention – Not only has the company created various tests to determine patients’ risk for heart disease, cancer and neurological and autoimmune conditions, but they have also reduced the wait time for patient feedback up to 8 weeks. They’ve also created a free consultation service to help patients and their doctors interpret results and come up with an actionable plan to mitigate health risks posed by genetics.
5. InterAxon
Harnessing the power of brainwaves and translating that into digital signals that are recognizable and readable by computers, InterAxon has developed a technology that lends itself to applications that are ripe for integration into healthcare diagnoses and treatment. From meditation to gaming and ADHD assessment, the suite of services that Muse, the company’s wearable head sensor, can assist in extends to the treatment of anxiety and other mental health disorders.
Founded: 2007
Founders: Ariel Garten
Category: Diagnostics & Technology
Funding: $17.2 million
Why you should pay attention – Reviews of Muse, InterAxon’s high tech headband, cite it as a solution for decreasing stress and anxiety – two factors that can significantly affect employee productivity and personal achievements. If encompassed into employee health and wellness programs, or even subsidized from its current price of $299, corporations stand a lot to gain.
6. Memotext
Memotext’s solutions for medication adherence are based on flexible algorithms that influence behavior change by adapting to each patient’s changing biometrics and collected circumstances. Programs are also customizable by physicians or brands to enhance effectiveness of the platform for each specific user or cohort. Not only can this boost a provider’s reported quality of care measures and reimbursement rates (depending on the country’s policy), but also a drug’s efficacy rating.
Founded: Unknown
Founders: Amos Adler (CEO)
Category: Patient Adherence
Funding: Undisclosed
Why you should pay attention – Their randomized clinical trial shows a 17% increase in patients’ confidence of self-management, up to a 55% improvement in patients’ medication possession ratio and an increase of 88% in user retention. Client testimonials cite that better patient adherence equates to better patient outcomes and higher patient satisfaction for the provider.
7. Myndtec
Redefining neurorehab, Myndtec develops and commercializes innovative medical devices and therapies designed to improve function, maximize independence and enhance quality of life. Their first product, MyndMove, is a proprietary eight-channel Functional Electrical Stimulation (FES) device that assists patients in recovering natural and voluntary movements in the arms or hands after suffering from paralysis, stroke or spinal cord injury.
Founded: 2008 (previously Simple Systems)
Founders: Milos Popovic, M.D. & Aleksandar Prodic, M.D.
Category: Diagnostics, Technology & Treatment
Funding: Undisclosed
Why you should pay attention – The proprietary FES device can also be used in the rehabilitation and treatment of neuromuscular conditions. While the device is to be used in conjunction with a physical therapist’s expertise, if the device is eventually sold direct-to-consumers (or to in-home caregivers), adherence to treatment may be improved while simultaneously decreasing recovery time.
8. NerveVision
This patent-pending, FDA-cleared diagnostic support platform can reconstruct 3D images of any peripheral nerve taken in a standard MRI series allowing clinicians to more easily locate, see and assess abnormalities. The NerveVision technology introduces new methods of understanding nerve disorders and lets physicians develop more comprehensive and detailed plans for pain management, as well as direct interventions in pre-surgical planning.
Founded: Unknown
Founders: Lionel Lenkinski, M.D., Jay Freeman & Domenico Ciambrone
Category: Diagnostics & Technology
Funding: Undisclosed
Why you should pay attention – The greater accuracy and detail NerveVision lends to diagnostics and treatment assessments can reduce the number of procedures patients must undergo, overall treatment costs and opportunity costs associated with time spent in medical settings. The technology also has the ability to make patient visits more efficient and meaningful, and it has been implemented at some of the most prestigious institutions in the U.S. including Massachusetts General & Johns Hopkins.
9. Oxalys Pharmaceuticals
Specializing in neurodegeneration therapeutics, Oxalys is developing therapies that prevent, slow or reverse the process of brain degeneration. The drug discovery platform aims to target the underlying cause of such conditions and has been designed to identify the molecules that suppress the toxic effect of mutations that cause degeneration. Their lead therapeutic, OXD-4, reduces the harmful effects of stress on the brain and prevents neurons from excitotoxic cell death.
Founded: 2011
Founders: Katharine Sepp (CEO)
Category: Diagnostics & Treatment
Funding: Undisclosed
Why you should pay attention – Capitalizing on the robust pharmaceutical market, the company has been testing drugs already in circulation to assess their potential efficacy on neurodegenerative conditions. Repurposing such medications is not only cost-effective, but can speed up the approval time for clinical trials, as it has done for OXD-4.
10. Seamless MD
A patient education and engagement platform, Seamless MD prepares people for upcoming surgeries with pre- and post-op care information, medication reminders, interactive care plans and tools for self-management. The platform also collects data and transmits it to the appropriate caregiver making those providers who use it eligible for certain reimbursement requirements (depending on the country).
Founded: Unknown
Founders: Joshua Liu, Philip Chen & Willie Kwok
Category: Patient Adherence & Treatment
Funding: Undisclosed
Why you should pay attention – Named a Forbes 30 Under 30 in Healthcare and one of the top 20 hottest innovation companies in Canada by CIX, the platform can lower the risk of readmission and post-op complications thereby increasing provider availability for other patients. As specialists in Canada already have extremely long waiting lists, this has the potential to decrease wait times for appointments, as well as between diagnosis and treatment.
WESTERN CANADA
1. Ayogo Health
Ayogo’s proprietary platform, Empower, has been deemed effective enough to be designated a Digital Therapeutic. Customizable according to physician or practice goals, the software incorporates elements of gamification and social networking to create sustainable behavior change and long-term healthy habits. The platform has already been adapted for patients with various chronic conditions including obesity, insomnia and Type II diabetes.
Founded: 2011
Founders: Michael Fergusson & Paul Prescod
Category: Patient Engagement
Funding: $2.5 million
Why you should pay attention – Already accredited by companies like Merck, Sanofi, Novartis, Kaiser Permanente and Boehringer Ingelheim, users of the company’s platform have shown a 200% improvement in target health outcomes over control groups.
2. Cognilab
The Cognilab platform is advertised as being ‘faster, cheaper and more effective’ for creating, crowdsourcing and sharing psychology experiments. Effectively making the World Wide Web a recruiting tool, this platform minimizes a startup’s financial and technological barriers to market entry and allows companies to recruit and capture the data needed to conduct robust clinical trials.
Founded: 2013
Founders: Ladan Mahabadi, Kelsey Hannan & Jose Barrios
Category: Diagnostics
Funding: $212.4 thousand
Why you should pay attention – This UX friendly platform lets scientists and non-technologically savvy patrons produce and distribute surveys to gather pertinent information in a time-sensitive manner. It has the potential to catalyze clinical trials by expanding patient pools to the global community therefore speeding up the relevant approval processes.
3. Contextual Genomics
Of all the health issues in developing countries, cancer is one condition that affects populations on a wide-scale basis without discrimination. Having crafted diagnostic tests based on gene mutations, this company aims to identify therapeutic targets for patients, acquired drug resistant mutations and mutations that may have prognostic or diagnostic implications for patient care.
Founded: 2012
Founders: David Huntsman, Samuel Aparicio & Sohrab Shah
Category: Diagnostics
Funding: Undisclosed
Why you should pay attention – From breast to colorectal cancer, the data collected by CG’s studies has the ability to significantly impact future studies and treatment processes. The company’s technology is already being utilized for other genetic and hereditary conditions and may have the ability to identify at-risk patients before symptoms develop, giving healthcare systems the ability to expand upon preventative care and save costs.
4. eTreat Medical Diagnostics
This mobile health company builds apps that offer curated, diagnostic information to patients with chronic conditions that will assist them in effectively managing their health. eTreat’s current suite of apps focus on managing arthritis, skin conditions, muscular/skeletal disorders, chronic wounds and diabetic ulcers.
Founded: 2014
Founders: Nick Mackinnon, Shanil Gunasekara, Malith Gunasekara & Fartash Vasefi
Category: Diagnostics & Treatment
Funding: Undisclosed
Why you should pay attention –Enabling a greater level of personalized care, patients using eTreat’s apps can take a guided photograph of their condition, receive detailed analysis on their progress over time and share the report of what treatments have the best results with their doctors. The MyHand app has been approved to be marketed as a Class I medical device in Canada, opening the pipeline for the company’s future products.
5. LifeBooster
The LifeBooster patent-pending system is comprised of three unique wireless sensors that integrates into existing uniforms or gear, has biometric data analysis capabilities and can be used by professionals to conjure customized rehabilitation programs or musculoskeletal injury prevention plans. Based on the data collected, employers can create personal disability management programs or even health and safety training exercises to prevent employee injury. Employers can minimize occupational hazards, lower healthcare costs and maintain a healthy and efficient workforce, thereby ensuring certain levels of productivity.
Founded: 2012
Founders: Stacey Wallin & Bryan Statham
Category: Diagnostics & Technology
Funding: Undisclosed
Why you should pay attention – Moving beyond employee wellness in the mining, oil and gas industries (or those industries which hard labor is required), the technology has great potential for growth in Canada, a country where specialty and post-operative care are often difficult to access in a timely manner.
6. Lions Gate Technologies
Addressing the lack of care available in remote and underdeveloped areas, LGTmedical has developed the Kenek suite of patented, low-cost monitoring solutions that can be downloaded and used almost anywhere via smartphones, tablets and laptops. Their Phone Oximeter can measure blood pressure, indicating whether a woman is at risk for pre-eclampsia, and blood oxygen levels, making this device diagnostic for respiratory conditions like asthma and chronic obstructive pulmonary disease (COPD).
Founded: Unknown
Founders: Tom Walker (CEO)
Category: Diagnostics & Technology
Funding: $2 million
Why you should pay attention – The global mHealth market is forecasted to hit $23 billion by 2017, and remote patient monitoring is expected to grow on a global scale from $9 billion in 2011 to $21 billion in 2016. Contingent upon price point, production costs and integration into care delivery systems (whether developed or not), the company has great potential to make a significant impact on public healthcare expenditures, in-home caregiving costs and community health and mortality rates in low and middle-income countries.
7. Nanozen
Created to help analyze environmental health risks in the workplace, Nanozen’s DustCount sensor can detect particulate matter smaller than 10 micrometers in diameter. The technology has the ability to distinguish between particles and identify those that are carcinogenic or can cause explosions.
Founded: Unknown
Founders: Winnie Chu
Category: Technology
Funding: Undisclosed
Why you should pay attention – Inadequate development and implementation of environmental monitoring devices combined with the rise of carbon emissions globally has created a niche for Nanozen’s technology to enter. Both private and public entities stand to save money and reduce health risks with the use of these devices.
8. PHEMI Health Systems
A big data analytics and process automation company, PHEMI ‘unlocks patient data’ to improve clinical productivity, patient outcomes and research initiatives. Integrating into hospital EMRs, databases and information systems, the platform aims to streamline care pathways and enable evidence-based medicine.
Founded: 2013
Founders: Paul Terry, M.D. (CEO) & Alan Rabinowitz, M.D. (CMO)
Category: Data & Technology
Funding: $2.8 million
Why you should pay attention – PHEMI’s point-of-care patient information can help inform population health research, clinical trial recruitment, market surveillance and policy interventions. Their enterprise collected data is automatically presented as bite-sized, quantitative graphics that show causality and direct relationships, helping to analyze the effects of each factor on another, taking into account volume, variety and velocity while making it a invaluable database for companies looking to scale up.
9. Recon Instruments
A cooler looking competitor to Google Glass, Recon’s Jet eyepiece connects wirelessly to wearable sensors, helping patients and athletes monitor various metrics in real-time. Combining its onboard GPS and a comprehensive sensor suite including an accelerometer, gyroscope, altimeter, barometer and magnetometer makes this a premium tool for sharing fitness data with communities on-the-go, bringing the element of incentivization to physical activity.
Founded: 2008 (acquired by Intel in June 2015)
Founders: Darcy Hughes, Fraser Hall, Hamid Abdollahi & Dan Eisenhardt
Category: Technology
Funding: $17 million
Why you should pay attention – At product launch, Recon had vastly outsold its Google Glass counterpart. Recognizing the potential of technology and its applications in other markets, the company was acquired by Intel last month. Their open software development kit ensures that its applications are limitless.
10. XCo
XCo’s patent-pending eXact Positioning System (XPS) is capable of determining location down to a few centimeters, both indoors and outdoors, regardless of Wi-Fi connectivity. This makes it an invaluable asset to any in-home caregiving, whether on a device-maker or caregiver platform.
Founded: 2014
Founders: Scott McMillian
Category: Technology
Funding: $500k
Why you should pay attention – Because of such constant and accurate tracking, XCo has the potential to recognize habitual and patterned behavior, allowing it to detect erratic movements and emergencies. Connectivity allows the data and alerts to be sent to a patient’s loved ones if need be. In addition to healthcare applications, Gauge has boundless elements integral to fitness tracking, athletic training and community engagement through the broadcasting and gamification functionality.
Komal Garewal is a consultant for health tech looking to raise rounds via crowdfunding or sites like Healthfundr, where she is a Marketing and Growth Strategist. Get in touch with her on LinkedIn or follow her on Twitter.