We live in a world saturated with ‘smart devices,’ in which we all carry in our jeans pockets and handbags more computing power than the Apollo Space Program had.
Australia is one of the most smartphone-addicted nations in the world: smartphone penetration here is 65%, having doubled since 2011. That puts Australia nine percentage points ahead of the US and in front of Britain, France or Germany, according to a survey conducted by Ipsos MediaCT for Google.
We use them for communication, shopping and conducting everyday tasks. But soon, we will be using them for managing our health.
That is the premise of mHealth, or Mobile Health, which is medicine and public health supported by mobile devices. mHealth is considered a subset of eHealth, the use of digital technology such as computers, the Internet, mobile phone applications, satellite and wireless communication networks for transmitting health services and information.
According to the Global Data 2012 survey, the global mobile health app market was worth US$1.2 billion in 2011 – but will grow at a compound annual rate of 39% to 2018. The Research2Guidance 2012 survey says 250 million people downloaded mHealth apps in 2012, but projects that up to half a billion people will do so by 2015. The Kalorama Info 2012 survey forecasts the wireless monitoring market for chronic diseases will triple over next three years. And Deloitte expects one billion smart phones to be sold this year.
Australian company iSonea Limited (ISN) is well-positioned on this wave. iSonea develops, makes and markets devices, software, and mHealth applications to improve the management of asthma and related respiratory disorders.
The company is about to launch its flagship product, AirSonea, the world’s first consumer asthma monitoring device. Earlier this month iSonea completed the testing and technical documentation for AirSonea to receive the Conformité Européenne (CE) Mark, which clears the way for the device to be marketed in the 27 member states of the European Union, as well as in the four member states of the European Free Trade Association (Switzerland, Iceland, Norway and Liechtenstein) and in Turkey.
AirSonea is a mobile asthma monitoring device that is placed against the neck and records the sounds that breathing generates, to measure the person’s ‘wheeze rate’ – a sign of airway constriction that can indicate increasing risk of an asthma attack. AirSonea works in conjunction with another iSonea product, a free app called AsthmaSense, to make up what the company describes as the world’s first personal asthma security system.
AirSonea synchs with a smartphone through the controller app, then launches AsthmaSense, which analyses the data from AirSonea, environmental and GPS data from the area where the user is located – for example, the air quality, pollen and weather information – along with critical info already recorded using AsthmaSense, to evaluate and predict the user’s asthma condition, and calculate within seconds the risk of an asthma attack.
This information is transmitted by Bluetooth back to the user’s phone – as well as the phones of nominated family members or friends – and is also sent straight to the user’s doctor, in real-time, or another emergency number nominated. The information is also backed-up and stored in the cloud. The user can activate their pre-set action plan.
AirSonea Introduction Video
In April, iSonea filed an application to list AirSonea with the Australian Therapeutic Goods Administration (TGA), and expects that the device will be marketed first in Australia by the end of the year 2013. The company has also lodged an application to the Food and Drug Administration (FDA) in the United States, and expects a launch in the US by late 2013-early 2014.
iSonea had already lodged an FDA application for its SonoSentry wheeze measuring device, a re-branded non-prescription version of its original Wheezometer wheeze monitor, which was launched in 2007. The SonoSentry application is still in the works, for people who do not have smartphones.
The company says obtaining TGA clearance is quicker than obtaining FDA clearance in the US: launching first in Australia will provide distribution channel experience and revenue prior to the US launch of AirSonea. But with 2.3 million asthmatics in Australia compared to 25 million in the US, FDA approval is a bigger deal.
AirSonea will be manufactured in China by Refined Manufacturing Limited of Hong Kong, which specialises in high-volume, precision production of electronic, optical and computer-related products for health and consumer markets.
In Australia the unit will sell at $149.95, with the AsthmaSense prime subscription/service (called Asthma Security Guardian) fee to cost $1.99 a month. iSonea is confident that the recurring revenue model will prove highly scaleable. The company is cashed-up following a recent $13.5 million placement, and says it is ready to deliver on the Australian and US launch of AirSonea.
Based on the rate of smartphone use, iSonea reckons their initial potential market in Australia is 690,000 people, and 4.5 million people in the US. The company says its market research indicates that 80% of GPs and 62% of paediatricians would recommend AirSonea to all patient groups.
The usual caveats apply. iSonea only generated $75,562 in revenue in FY13, and after expensing all research and development costs made a net loss of $5.58 million. But the products it is launching look to have the potential to make a mockery of those numbers.
