Author: Salman Khan Niazi
Health technology, or ‘health-tech,’ involves the use of software, hardware, and data analytics to enhance health service delivery and improve outcomes. With a large rural population and a high disease burden, Pakistani start-ups has a unique opportunity to leverage health-tech to make quality healthcare accessible to all. The COVID-19 pandemic further emphasised the importance of advanced technological solutions in healthcare, fueling the growth of health-tech among Pakistani start-ups.
The digital health market in Pakistan is forecasted to grow to $545.99 million by 2028 . The medical technology market is forecasted to grow to $946 million by 2028, with a consistent growth of 7.63 percent per year .
Medical technology encompasses a wide range of devices and procedures used to diagnose, treat, and monitor health conditions, while digital health specifically focuses on using digital tools and platforms to enhance healthcare delivery and patient care. Both these markets come under the preview of health-tech, indicating a change to the way healthcare in Pakistan has traditionally been managed.
Both the public and private sectors collaborate to offer optimal healthcare. However, the overall burden of disease has resulted in a shortfall in the delivery of high-quality care, particularly in the government sector.
Over the past decade, the government’s healthcare expenditure has been a scant 0.5-0.8% of the Gross Domestic Product (GDP), a figure significantly lower than the World Health Organization’s recommended 6% of GDP .
This underinvestment has been a major contributor to the challenges faced in the healthcare sector.
Despite universal health coverage being a top priority in Pakistan, the country was ranked 154th out of 195 on the Healthcare Access and Quality Index . Additionally, on the Human Capital Index, which adjusts life expectancy for education and health, Pakistan was ranked 116th out of 195 countries . This poor reality suggests a wide gap between global healthcare practices but also sheds light on the immense potential and ample opportunities for innovative solutions in health-tech to narrow inequalities and improve the status of people’s wellbeing in the country.
Opportunities in Health-Tech for Pakistani Start-ups:
In Pakistan, an estimated 63% of the population lives in rural regions, and 37% live in urban areas . Digital medicine, especially telemedicine offers a more convenient and cost-effective alternative to conventional healthcare. It also reduces the capital expenditures (CAPEX) and operation expenditures (OPEX) of running large scale clinic-based operations.
Similarly, in Pakistan, the ratio of physicians to the population stands at around 1:1127, falling short of the World Health Organization’s advised ratio of 1:1000 . Expanding the accessibility of medical providers through virtual solutions is a strategic approach to address the existing challenges within the healthcare system.
It is important to note that a significant 64 percent of the population is under the age of 30, forming a substantial user base that is receptive to innovative and internet-driven solutions .This demographic shift can benefit health-tech, as the younger generation’s familiarity with digital platforms can facilitate the adoption and utilization of advanced healthcare technologies. It should be noted that given the low internet penetration rate of 45.7%, digital literacy is far from desirable . Furthermore, given the poor enforcement of healthcare regulation and protocols in the country, it is vital that digital solutions also be monitored and regulated effectively to avoid further room for the growth of informal healthcare providers and quacks.
Renowned health-tech start-ups that are impacting global communities:
Baseimmune is a biotech start-up using deep learning AI (Artificial Intelligence) to develop vaccines that can protect against future disease mutations, addressing global health challenges like African swine fever, coronavirus, and malaria. Using deep learning AI, Baseimmune predicts future disease mutations and creates vaccines that can protect against these new variants . The startup has raised 4.2 million pounds through seed funding. They are co-developing an anti-malaria vaccine with University College London which can reduce an estimated 0.5 million deaths a year .
MiRXES, one of Singapore’s fastest-growing health tech companies, specialises in early detection tests for cancer and microRNA discoveries. Their flagship product, GASTROClear, is the world’s first molecular blood test for early detection of gastric cancer, capable of identifying around 90% of patients with Stage I and II cancers . During the pandemic, MiREX was responsible for producing a million COVID-19 test kits a week under the brand name Fortitude, which were then exported to over 40 countries worldwide. To date the startup has raised 168 million pounds and is in the series C funding stage.
Proximie aims to create a borderless operating room using augmented reality, extending the reach of a surgeon’s expertise. Currently, surgeons from over 800 hospitals in more than 50 countries use Proximie to virtually attend operating theatres and guide complex surgeries . Proximie has already been used to aid medical students in their practical education and has multi-year contracts with the UK military . Proximie also has a Global Health Initiative, through which they provide guidance, equipment, and grants to build the capacity of medical staff in developing countries . The company has raised £135 million and is in the Series C funding stage.
Success Stories of Pakistani Health-Tech Start-ups
Sehat Kahani is a teleconsultation healthcare service that exclusively employs female doctors to provide patient care. The company has launched an E-healthcare centre equipped with information and communication technologies (ICT) to connect patients with health microentrepreneurs through telemedicine software. The start-up secured $500,000 in its initial funding round, followed by $1 million in pre-Series A funding, and by the end of 2023, it successfully raised $2.7 million in a Series-A round . Sehat Kahani provided over 700,000 COVID-19 consultations and has played an instrumental role in providing healthcare for Afghan refugees and the 5.3 million internally displaced people in Pakistan .
HealthWire is a healthcare concierge service that offers specialist services and online consultations. By January 2022, they had served 5 million patients and expanded their presence to over 75 cities. They aim to reach 100 million patients by 2025. HealthWire has raised 3.5 million USD from national and international investors. They were a part of the LUMS Centre for Entrepreneurship (LCE) start-up incubation programme .
To conclude, the health-tech space, both nationally and globally, has been flourishing. Globally, the market has moved towards digitising surgical procedures and incorporating AI to create novel ideas and increase the rate of medication production. Meanwhile, Pakistan is still striving to decrease the healthcare gap between urban and rural populations through remote consultations. With clear determination, Pakistani start-ups will start contributing to the international stage soon.
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