Jessica Rudd of Medtronic Canada shares how a new partnership will help the company meet patient needs uncovered during the pandemic.
A recent new partnership in the health technology space has its origins in the COVID-19 pandemic, responding to important patient needs highlighted by the outbreak
Just before the end of last year, Medtronic Canada, a subsidiary of Medtronic (NYSE:MDT), announced plans to expand its outreach to patients via virtual solutions due to the limitations of a world still in a global pandemic.
Medtronic Canada is achieving these “virtual and remote patient monitoring solutions” via a business agreement with Cloud DX (TSXV:CDX,OTCQB:CDXFF), a health technology company. The deal is exclusive to Canada.
Pandemic pushes demand for virtual health solutions
In an interview with the Investing News Network (INN), Jessica Rudd, national director of new partnerships and solutions at Medtronic Canada, expanded on the reasons the medical technology firm decided to seek out this partnership in the first place and how Cloud DX came out on top.
“We went looking, and we spent six, nine months doing a really thorough assessment of the Canadian small/medium enterprise landscape in the health sector to look for the perfect partner,” Rudd said.
The partnership expert for Medtronic Canada said that despite the company’s wide reach in the medical space, gaps will always be present in how it meets patients.
“We really do touch a large, lengthy continuum and a large cohort of patients in Canada and work with every hospital and every health system ... but that doesn't mean we have a solution to everything,” Rudd said.
Meeting patients at home became a necessity during the COVID-19 pandemic for all types of treatments, including medical device monitoring and maintenance.
“We can offer more in the virtual care space; we could offer more outside the hospital setting, either pre-op or post-op surgery, for example, or chronic conditions,” Rudd said.
COVID-19 business changes are here to stay
When asked about the future of health monitoring, Rudd said an easing of the pandemic won’t mean that changes to patient care will revert to their previous state when so much has changed since the spread began.
“We're not going to go back to a world where we're all going back and sitting in the doctor's office for two hours waiting,” Rudd explained in her conversation with INN. “We believe that this is not just something that will go away; we believe now it's embedded in the health system.”
The Medtronic Canada representative said the Canadian medical technology space has seen difficulties in scaling up, and is interested in making improvements in the future.
“Canada doesn't have the best track record for scaling and adopting tremendous innovations that come out of the Canadian health sector and landscape,” said Rudd. “We're committed to seeing that happen.”
Market reactions to Medtronic Canada's Cloud DX deal
In a press release when its deal with Cloud DX was first announced, Medtronic highlighted to shareholders what benefits this agreement will bring to its revenue line. In its statement, the company said:
Under the agreement, a typical deployment would involve the enrollment of a chronic care or surgical patient onto the Connected HealthTM platform, generating recurring revenue, depending on the length of the monitoring program. Cloud DX generates revenue upfront for kits prescribed to patients for use at home, and then a monthly subscription fee per patient for software, services, and support. Additional revenues could also be generated through customizations, consulting, and special services, as needed.
Since officially announcing the partnership on December 1, shares of Medtronic had increased 1.92 percent in value to a price of US$107.49 as of Tuesday (January 18).
Meanwhile, shares of Cloud DX have jumped since the partnership was confirmed. The company's share price had increased by 40 percent as of the Tuesday trading session.
All markets have been disrupted by the effects of COVID-19, but in particular the pandemic has placed a renewed focus on the broader life science industry.
Rising levels of interest have given way to partnerships and other collaborations as companies work to serve those in need of drugs, treatments and medical technology during these challenging times.
Looking behind the scenes at how Medtronic Canada and Cloud DX are joining forces to help patients shows how important it is for companies to continue innovating and adapting in today's pandemic world.
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Editorial Disclosure: Cloud DX is a client of the Investing News Network. This article is not paid-for content.
Securities Disclosure: I Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.