Taiwanese diabetes management company Health2Sync raised US$6 million (€5 million) in early December in Series B investments led by Sompo Holdings, one of Japan’s largest insurance companies .
The company said the new fund will be used to expand its business in Japan, but also to improve its data-driven services and to create features specifically for health insurance partnerships.
Diabetes management: Japan is one of the most attractive markets in the world
« Japan is one of the world’s largest markets in diabetes-related spending, » Ed Deng, co-founder and CEO of Health2Sync, said in a statement. It is crucial to have a local partner as it can also be viewed as a difficult market to penetrate. »
Favorable policies
« From our observation, the Japanese government has created [policies] and made funding available for diabetes care and prevention of complications », Mr Deng told MobiHealthNews.com.
Health2Sync plans to expand in Japan since 2016
Health2Sync was founded in 2013. In August 2016, it raised US$3 million(€2,5 M) in funding from a combination of firms in Silicon Valley and Asia. At that time, the firm said the funding would be used to expand its program outside of Taiwan, specifically into surrounding markets.
The company explained it will focus on the Japanese market because of the high penetration rate of smartphones and health literacy in the country. It is also interested in the Chinese market but not in the immediate future.
Health2Sync: real-time analysis of health data
Health2Sync provides a diabetes management platform that includes a patient-facing app, a cable that connects different types of glucose meters to a smartphone, and a data analytics engine that uses patient’ data to make personalized recommendations.
The application sends users automated alerts, allows behavioral data analysis and the use of a chatbot to perform real-time analysis and provides access to web-based support that allows care providers to remotely monitor patients efficiently.
Health2Sync: the average blood glucose of users decreased by 22% after 3 months of use
According to the company, the average blood glucose of high-risk users decreased by 22% after using Health2Sync for three months.
Diabetes is widespread in Asia. The continent accounts for nearly 50% of all cases in the world, Health2Sync said. In 2013, China had the highest total number of people with diabetes of any country, according to an analysis of the American Diabetes Association. The study also reveals that the number of people affected by the disease in Japan has increased significantly since 1997, especially among the male population.
Partnerships with Asian public and private investors
The company, based in Taipei, noted that it was advantageous to settle in Taiwan because the government provides financial incentives to hospitals and clinics to help them manage diabetes effectively. It has partnered with the country’s Ministry of Health and Welfare to design diabetes care online.
In 2016, Health2Sync also worked with public and private investors in Taiwan but also in Hong Kong, Malaysia and Singapore to reduce the medical costs associated with diabetes complications.
Health2Sync works closely with insurance companies
The company is currently working with US insurance companies MetLife and Cigna and re-insurers to provide protection and digital engagement to diabetics, and has also worked with various Asian governments.
« As national health insurance is the largest payer in some [Asian] countries where cost and efficiency is critical, our system enables healthcare providers with more real-time and more efficient patient management, » Mr Deng said (source : MobiHealthNews.com). Being able to have direct touch point with the population for risk identification is of huge value to public payers. »
In late November, Health2Sync announced an agreement with Ascensia Diabetes Care (Switzerland), a global company dedicated to improving the health and lives of people with diabetes. The partnership will combine offers for people with diabetes, including the Contour Plus or Contour TS blood glucose monitoring system from Ascensia and the Health2Sync application.