Technology can be a vital tool in treating neurological conditions but scaling up its applications requires knowledge of the healthcare industry across various countries. Jorgen Ellis, CEO of neuro-rehab company Strolll, and Clare Auty, Head of Independent Health and Social Care at UK and Ireland law firm Browne Jacobson, explain the key steps this involves.
In most areas of HealthTech, software typically assists traditional treatments. Neurotech has a clear USP – it’s one of the only digital therapeutics in the world where the technology can be the treatment itself.
Take Augmented Reality (AR), where glasses have been developed to overlay digital images on to real-world environments, providing multi-sensory cues for gait and balance training programmes as well as gamified exercises.
Strolll, a neuro-rehab start-up, uses the technology as neuro-rehabilitation and physical therapy for patients with neurological conditions. Initially developed for patients with Parkinson’s disease, it can also be rolled out in future to other conditions affecting motor systems such as stroke and MS.
This is just one application of neurotech, which the UK’s Regulatory Horizons Council predicts will have a US$17bn global market value by 2026 with a huge variety of applications.
Neurotech start-ups should be excited about the possibilities that exist if they’re able to scale up their technology. Doing so requires hard work, access to relevant expertise and a willingness to collaborate with the right partners.
Proving efficacy via partnerships
Developing a minimum viable product may feel like the culmination of a long journey from ideation to realisation, but it’s only the beginning in truth.
For a start-up, proving efficacy and value may require collaborating with more established partners, such as healthcare providers, research institutions, digital health incubators, industry associations and other businesses. This can facilitate growth, innovation and market penetration.
Strolll partnered with Vrije University in Amsterdam, University of Leeds and Leeds Teaching Hospitals NHS Trust for proof-of-concept and feasibility studies involving its AR glasses, acquiring both intellectual property and know-how.
These learnings became part of its Strolll AR product, which provides access to visual and audio cues used in gait and balance training programmes. Validation from well-regarded institutions also helped to win millions in equity funding and innovation grants to fuel growth.
Understanding your market idiosyncrasies
Getting a foot in the door with the NHS is a highly significant endorsement that provides access to one of the world’s largest healthcare markets and can help propel companies into new territories.
Some perceive the NHS to be a brick wall but Strolll has discovered it’s great to work with if you’re willing to put in the hard yards to build relationships with the right people from grassroots level. The first port of call should be signing up to the NHS Innovation Service and your local Health Innovation Network.
The biggest challenge is demonstrating your worth. You’re unlikely to get an immediate five-year contract but, once you can prove how effective your product is in improving health outcomes and efficiencies, there are pathways for long-term partnerships. Having funders that understand this gradual approach to building relationships helps.
Understanding health economics is critical to success – improved health outcomes are not enough to persuade NHS procurement teams to buy a product, like any business they need to prove ROI. Lecanemab, the first drug to slow the progression of early-stage Alzheimer’s and licenced by the MHRA, was not approved for NHS use because its benefits don’t outweigh the cost.
While saving money is a priority for the NHS, a largely privatised healthcare system in the US places the emphasis instead on growing and scaling services to expand businesses. It may also be worth considering the greater competition for healthcare talent, differences in prescription periods for treatments and varying payment models when assessing how to pitch a new product.
Legal and practical considerations in neurotech
Any HealthTech business should be making the necessary steps to protect their intellectual property (IP) from the very beginning to safeguard their innovations but also enhance their valuation and attractiveness to investors.
Conducting an IP audit will identify and prioritise all potential IP assets, including software, branding element and unique processes or know-how. Filing for protection early is vital and companies wishing to export should also consider international protection.
Employing a legal adviser who understands not just IP, but the various regulatory and commercial hurdles across healthcare markets, can be an invaluable external resource.
Different partners will have their own requirements, and the right contract will protect rights, revenue and control. Adapting the standard NHS contract enables a company to quickly sign agreements with new trusts.
Other considerations that can sometimes be overlooked include consumer protection laws such as cooling-off periods for any supplies directly to the patient, consent for handling personal data, and the added complexity of third-party retention of title provisions in any partnership.
Grasping opportunities
An ageing population, rising chronic health conditions, and increased regulatory and reimbursement support are among the many factors driving rapid growth in the neurotech market.
Technology is increasingly capable of responding to acute conditions, providing huge opportunities for innovative start-ups.
Getting the basics right in their approach to market will ensure they can play a central role in addressing some of the most significant global healthcare challenges.
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