Digital health companies generate over £1bn turnover in 2016
Article posted on: April 7, 2017
London, Yorkshire and the Humber and the South-East of England generated £0.7bn out of the total amount
[London, UK] A new report published by the UK government shows UK digital health companies have generated in 2016 a turnover of more than £1bn.
Published yesterday, the research analyses the med tech and biopharmaceutical ecosystem in the UK, showing that overall turnover remains high (over £63bn), re-establishing the UK’s place as a ‘global hub’ in the life sciences industry.
The digital health sector includes companies that ‘develop and market software’, with devices in use in both primary and secondary care or in the homes of patients, but also in clinical trials.
“The focus is on software that has high medical information content and is validated,” the report states.
London as the UK’s digital health hub
From the 2016 annual update, the digital health sector reportedly comprises 427 companies and the £1bn turnover figure includes only companies where more than 20% of their economic activity focuses on digital health: “This approach does not include all the economic activity associated with, for example, large diversified companies where digital health is not their main activity.”
Other figures show that nearly 60% of digital health companies – 255 – have less than five employees working for them, while 58% have an annual turnover of less than £250,000.
Furthermore, London is considered a hub for digital health companies, with most of them having offices here, followed by Yorkshire, the Humber and the South-East of England, which have the highest ‘individual turnovers’ – nearly £0.7bn of the total amount.