Alphabet Inc. Presents at 38th Annual J.P Morgan Healthcare Conference, Jan-15-2020 12:30 PM - NasdaqGS:GOOGL

NasdaqGS:GOOGL

Othman Laraki made several comments during the panel discussion. Here is a detailed summary of his statements:

1. Introduction:

   • "I'm Othman Laraki. I'm Cofounder and CEO of Color. We're a health technology company that works with about 100 different institutions across -- from NIH, self-insured employers, some -- pharma as well."

2. Definition of Digital Health:

   • "Anyone want to start? I can jump in. I mean, basically, that's just health care. I think there's no version of health care with IT anymore. And so in the same way that like retail, 20 years ago, we were thinking about e-commerce versus the -- versus retail, but now it's like it seems completely inaccurate as to even think about retail without digital shopping, and I think health care is basically the same thing."

3. Cultural Differences Between Healthcare and Tech Companies:

   • "I think one of the cultural gaps that has existed sometimes is that if you're purely coming from a consumer technology world, I used to be at Google for a number of years. And when you're iterating sometimes on a pure consumer product, there are very few parts of the product that are sacrosanct, in some sense, where you can iterate on the entire experience."
   • "As you can -- there's a big surface area where you can be very experimental. And I think with health care, obviously, there is some parts that are very deeply sacred in terms of ensuring that you don't cause harm, that you have certain quality standards, et cetera. And I think sometimes where there has been kind of a gap in that cultural -- in those cultural norms has been around different assumptions about where -- what parts are experimental versus not."

4. Example of Balancing Experimentation and Quality:

   • "Yes. I was going to say, like, for example, with Color, so we -- by now we've built a kind of an infrastructure that has been used to roll out the largest number of genomics -- population genomics programs in the world. And there are some parts of the system that we are very experimental with, like, for example, how do you get a clean consent flows and how do you get people to answer questions with the highest convenience for them, et cetera. Those are things where you actually want to increase yield and be very experimental."
   • "On the flip side, we run a clinical-grade diagnostic part of the product. And that is a part where we really cannot mess up, right? And it's very -- like the experimentation framework for that is very constrained. And so I think like that's where like sometimes if you come in with a pure consumer tech hat, it's important to realize, like, okay, where do I draw the lines and operate in these very different worlds and be kind of comfortable with them."

5. Transition of Color’s Business Model:

   • "It's actually interesting because it's -- initially, even the reason why we actually have a cash access is that we took a product that used to cost $5,000 and put a clinical-grade version of it at $250, which is still not nothing. But it made it much more accessible, right?"
   • "And then -- but the -- but really, where we started working with payers, et cetera, is much more in terms of recognizing that there's not just one stakeholder in health care, right? Like it's kind of like there's individual, there's payers and the clinicians and really kind of incorporating those 3 together in the model, both from a product as well as a business model."
   • "And it's been actually pretty been part of kind of how we've been working for quite a while. So like the kind of cash access is really about an access point for people, but -- yes."

These statements provide insights into Othman Laraki's views on the definition of digital health, the cultural differences between healthcare and technology companies, and the specific examples he provides regarding Color's approach to balancing experimentation and quality in their products.

Jujhar Singh, Executive Vice President & General Manager of Industry Clouds at Salesforce, made several contributions during the panel discussion:

1. Introduction:

   • He introduced himself as responsible for the Salesforce Industry Clouds, focused on building verticals for seven industries.

2. Definition of Digital Health:

   • He defined digital health as technology ushering healthcare into a more retail-centric world with the patient at the center.

3. Culture Gap Between Healthcare and Technology Companies:

   • He noted that Salesforce sees both the B2B and B2C perspectives and believes that agility and maintaining change management processes are not mutually exclusive.
   • He highlighted that Salesforce successfully implements agile releases three times a year, balancing enterprise and consumer needs.

4. Digital Health and Patient Experience:

   • He expressed optimism about significant movement towards interoperability in the current year.
   • He suggested that the focus on patient experience would be the biggest driver for change, pushing providers, payers, and pharma to develop systems that communicate effectively.

5. Regulations and Interoperability:

   • He mentioned the 21st Century Cures Act and the interoperability pledge taken by top tech companies as indicators of progress.
   • He emphasized the importance of ecosystems thriving through interoperability.

6. Privacy and Data Control:

   • He stated that trust is the highest value at Salesforce and that informed consent should be the bedrock of privacy.
   • He advocated for consumer knowledge about where their data is and how it is used, emphasizing the importance of non-discrimination.
   • He mentioned the ability to revoke consent after data has been given as a critical aspect of privacy.

7. Comparison with Other Industries:

   • He argued that while healthcare is innovating, such as in precision medicine, patient experience lags behind compared to other industries.
   • He contrasted healthcare’s siloed approach to innovation with fintech’s more connected systems, suggesting that the end consumer does not see the full benefits of healthcare’s innovations.

These points highlight Jujhar Singh's perspective on the evolving landscape of digital health and the role of technology in improving patient experiences and interoperability within the healthcare industry.

Jeremy Sohn, the VP, Global Head of Digital Business Development & Licensing at Novartis, shared several insights during the panel discussion:

1. Definition of Digital Health: He noted that "digital health" can mean different things to different people and suggested that ideally, the term "digital" should be dropped and the focus should simply be on "health." He emphasized that the industry is at an inflection point where digital capabilities are becoming integrated into all aspects of healthcare.

2. Transitioning to Digital Health: Sohn highlighted that the transition to digital health involves building a new muscle within pharmaceutical companies, emphasizing continuous optimization over repeatability. He explained that while quality and excellence are core strengths of pharmaceutical companies, the digital health approach requires a startup mindset to continuously improve operations.

3. Integration of Digital Capabilities: He discussed the need to integrate digital capabilities as a core part of various business functions within pharmaceutical companies, including research, development, clinical trials, commercial organizations, and even internal finance. This approach aims to create an "agility engine" that supports the core business.

4. Privacy and Consent: Sohn mentioned the importance of holding patient identity and privacy as paramount, suggesting that the pharmaceutical industry can serve as a model for informed consent processes. He advocated for transparency and upfront communication regarding the use of patient data for research purposes.

5. Data Privacy Challenges: He acknowledged the evolving challenges of data privacy, particularly in light of the increasing ability to perform pattern recognition and aggregate vast amounts of data. He suggested that the concept of privacy needs to be rethought, considering issues like de-identification and the implications of multi-omic data.

6. Transparency and Control: Sohn emphasized the need for transparency regarding how patient data is used and advocated for mechanisms that allow patients to have visibility and control over their data.

Overall, Jeremy Sohn's comments reflect a deep understanding of the intersection between traditional pharmaceutical practices and emerging digital health trends, highlighting the importance of balancing innovation with ethical considerations and patient trust.