Google, Sanofi to Jointly Improve Diabetes Management
Given the alarming rise in the diabetic patient population every year, Google Inc.’s GOOGL life sciences group has partnered with the French drug maker Sanofi SNY to develop tools to enhance holistic diabetes management and treatment worldwide.
The multinational pharmaceutical company, Sanofi develops, manufactures and sells health care products. Sanofi's diabetes product line recorded sales of 1.9 billion euros or $2.13 billion in the second quarter of 2015, accounting for 20% of total sales.
Only recently, Google co-founder and Alphabet President Sergey Brin stated that Google X will spin out its Life Sciences group into a standalone company within Alphabet. He also said that the new Life Sciences business will continue to partner with other companies to further new technologies from the early stage to the clinical testing stage for the detection, prevention and management of diseases.
Since the news of the spin-off, this is the first Life Sciences group partnership to be announced by Google. Per the deal, the two companies seek to combine their efforts to facilitate better diabetes management for patients.
Google has been trying to expand into the health care space with strong focus on diabetes. Recently, the online search giant partnered with continuous glucose monitoring (CGM) device maker, DexCom, to develop a series of compact (bandage-sized sensor), easy-to-use and economic CGM devices for diabetes patients.
Last year, Google's Life Sciences unit also collaborated with the Swiss drug maker Novartis AG to develop contact lenses to measure one’s blood sugar level to address potential ocular conditions. Google also launched the Google Fit health data platform, an open multi-OS API for fitness apps and devices. The program allows developers to track fitness data, sync it across devices and store it in a central place. Similar services have recently been introduced by Apple and Samsung.
We note that the global diabetes rate, per a recent study, has increased by nearly 45% over the last two decades. The International Diabetes Federation (IDF) estimates that 382 million people have been diagnosed with diabetes across the world, management of which is becoming incredibly complex and expensive for health care enterprises. Also, IDF expects the number of diabetics to surge from nearly 400 million people today to 592 million by 2035.
Thus, diabetes and overall health management is the need of the hour, more so in a convenient way that is compatible with patients’ everyday lifestyle.
The Google-Sanofi collaboration highlights the commitment to leverage technology for further advancements in health care. Apart from strengthening its presence in the ever-expanding field of medicine, Google will be able to create high revenue generating prospects in its Life Sciences division.
Google has a Zacks Rank #2 (Buy). A couple of other technology stocks worth considering are Manhattan Associates, Inc. MANH and Open Text Corporation OTEX, both sporting a Zacks Rank #1 (Strong Buy).
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