Royal Bank of Canadahttps://www.rbcroyalbank.com/personal.htmlhttps://www.rbcroyalbank.com/personal.htmlInsights1200630enCA
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2020-05-26New business models emergeWill genetics usher in a new era of healthcare? Is the entire health ecosystem ready for reinvention? Can digital healthcare in life sciences exceed patient expectations?Expanding Ecosystems3/assets/rbccm/images/gib/healthcare/article_3_thumbnail_sm.jpg/assets/rbccm/images/gib/healthcare/article_3_thumbnail.jpg<h3>Shifting Paradigms</h3>
<p>As the convergence of healthcare and technology has accelerated, new business models are rapidly emerging. </p>
<p>In the traditional biopharma model, the customer would be a physician, R&D tools would be chemical or biological, the end product a pill or vial, and the competitors pharma and biotech players.</p>
<p>The digital revolution in healthcare is shifting this long-established paradigm. Today, biopharma companies’ customer groups have grown to include patients of all ages, providers and payers—all equipped with smartphones and apps that generate a vast amount of digital information to empower their decision-making. R&D has added genetic information and digital capability to its toolset. The end product has broadened beyond the pill to include health outcomes enabled by digital devices and therapeutics. And the competitive set has seen the addition of technology players, including consumer-focused apps and online services, as well as digital health and digital therapeutics firms.</p>
<p class="photo-frame text-center"><img style="width: 100%;" src="/assets/rbccm/images/gib/healthcare/Healthcare-Article-3-Graph-1.png" alt="" /></p>
<h3>A Changing Ecosystem</h3>
<p>Indeed, digital and AI applications are radically changing key areas of the biopharma ecosystem and how patients manage their healthcare.</p>
<p>In pre-clinical research, technology is enabling everything from a deeper mining of literature, to predictive modeling and gene-function annotation. Digital apps are simulating molecular dynamics and pushing the limits of cellular imaging.</p>
<p>In clinical trials, digital transformation is helping to automate testing procedures, build global patient databases and collect real-world data.</p>
<p>In diagnostics, tech powers digital pathology, home-based body diagnosis, and computational analysis of tissue arrays. Just like your car leaves the factory with hundreds of sensors that can trigger the check engine light, humans will have wearable and/or implantable sensors to alert them when something is not functioning properly. Another burgeoning area is immune cell monitoring and digital analysis through just a finger prick.</p>
<p>At the point of patient care, digital applications are already delivering virtual consultations, remote monitoring, VR-based cognitive therapy and digital Rx. Demand for telehealth services and health-based social platforms is also increasing and especially vital in a world facing new challenges such as the COVID-19 pandemic.</p>
<p><img src="/assets/rbccm/images/gib/healthcare/healthcare-article-3-graph-2.png" alt="AI and Digital applications are changing key areas of the Healthcare Ecosystem" /></p>
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</div>
<h3>Digital Transformation</h3>
<p>The digital revolution presents both threats and opportunities to incumbent biopharma companies. Tech is powering efficiencies in all stages of the current ecosystem and is also enabling healthcare providers to expand their capabilities from treatment to prevention.</p>
<div class="quotebox">
<p>“Tech is powering efficiencies in all stages of the current ecosystem and is also enabling healthcare providers to expand their capabilities.”</p>
<p class="attribution" style="color: #0070a3;">– Greg Wiederrecht, Ph.D.</p>
<div class="quote-share">
<p style="display: inline-block;"><span style="margin-right: 15px;">Share </span><a class="blue-circle-outline-sm" href="https://www.linkedin.com/shareArticle?mini=true&url=https%3A//www.rbccm.com/en/gib/healthcare/episode/new_healthcare_business_models_emerge&title=New%20healthcare%20business%20models%20emerge&source=www.rbccm.com" target="_blank" rel="noopener" aria-label="Connect by LinkedIn"><em class="fa fa-linkedin" style="color: #0051a5; margin-left: 3px;"> </em></a> <a class="blue-circle-outline-sm" href="https://twitter.com/home?status=New%20business%20models%20emerge%20https%3A//www.rbccm.com/en/gib/healthcare/episode/new_healthcare_business_models_emerge" target="_blank" rel="noopener" aria-label="Connect by X"><em class="fa fa-twitter" style="color: #0051a5; margin-left: 3px;"> </em></a> <a class="blue-circle-outline-sm" href="mailto:?subject=New%20business%20models%20emerge&body=I%20found%20this%20insights%20piece%20from%20RBC%20Capital%20Markets%20informative%20and%20thought%20it%20might%20be%20of%20interest%20to%20you%3A%0D%0Dhttps%3A//www.rbccm.com/en/gib/healthcare/episode/new_healthcare_business_models_emerge&title=New business models emerge" aria-label="Connect by Email"><em class="fa fa-envelope" style="color: #0051a5; margin-left: 3px;"> </em></a></p>
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<p> </p>
<p>The increased digitization of human experiences gives access to a wealth of information and knowledge that could help intervene before disease has a chance to strike. A prime example of this is collating data from an Apple Watch to screen for irregular heart rhythms and detect undiagnosed atrial fibrillation. At the other end of the spectrum, digital transformation allows a completely new class of therapies such as digital therapeutics to support specific disorders.</p>
<p>McKinsey and Company’s international survey shows that more than 75% of patients expect to use digital healthcare services in the future.<sup>1</sup> Patients are seeking technology that delivers a level of care they can rely on and trust. Ultimately, the aim of the digital revolution is to develop healthier societies and lower the cost of care.</p>
<p style="word-wrap: break-word;"><sup>1 Source: McKinsey and Company, Healthcare’s Digital Future, July 2014. https://www.mckinsey.com/~/media/McKinsey/Industries/Healthcare%20Systems%20and%20Services/Our%20Insights/Healthcares%20digital%20future/Healthcares%20digital%20future.ashx</sup></p><ul>
<li>Customer groups, R&D and competitors are all rapidly expanding</li>
<li>Tech is reinventing every facet of the biopharma ecosystem</li>
<li>Innovations in patient care is driving adoption of digital services</li>
</ul>text2 min1 minHealthcare Models, Digital Healthcare, Digital Healthcare Apps, Digital Health Diagnostics, Expanding R&D, Healthcare & Tech Convergence, Healthcare Services, Clinical Trials, Remote Patient Monitoring, Digital Therapeutics, Biopharma ecosystem, Cost of CareN/templatedata/rbccm/episode/data/healthcare/amazon_cvs_and_google_healthcare_reimagined/templatedata/rbccm/episode/data/healthcare/big_tech_vs_big_pharma/templatedata/rbccm/episode/data/healthcare/the_healthcare_data_explosionGreg Wiederrecht, Ph.D./assets/rbccm/images/gib/healthcare/greg-wiederrecht.jpgManaging Director, Healthcare Investment Bankinggreg.wiederrecht@rbccm.comhttps://www.linkedin.com/in/gregwiederrecht/Sasson Darwish/assets/rbccm/images/gib/healthcare/sasson-darwish.jpgManaging Director, AI, Analytics and IoT & Israel Country Coverage, Global Technology Investment Bankingsasson.darwish@rbccm.com https://www.linkedin.com/in/sassdarwish/Andrew Callaway/assets/rbccm/images/gib/healthcare/andrew-callaway.jpgManaging Director, Global Head of Healthcare Investment Bankingandrew.callaway@rbccm.comhttps://www.linkedin.com/in/andrew-cal-callaway
DEBUG: DCR
DCR
Royal Bank of Canadahttps://www.rbcroyalbank.com/personal.htmlhttps://www.rbcroyalbank.com/personal.htmlInsights1200630enCA
DCR
2020-05-26New business models emergeWill genetics usher in a new era of healthcare? Is the entire health ecosystem ready for reinvention? Can digital healthcare in life sciences exceed patient expectations?Expanding Ecosystems3/assets/rbccm/images/gib/healthcare/article_3_thumbnail_sm.jpg/assets/rbccm/images/gib/healthcare/article_3_thumbnail.jpg<h3>Shifting Paradigms</h3>
<p>As the convergence of healthcare and technology has accelerated, new business models are rapidly emerging. </p>
<p>In the traditional biopharma model, the customer would be a physician, R&D tools would be chemical or biological, the end product a pill or vial, and the competitors pharma and biotech players.</p>
<p>The digital revolution in healthcare is shifting this long-established paradigm. Today, biopharma companies’ customer groups have grown to include patients of all ages, providers and payers—all equipped with smartphones and apps that generate a vast amount of digital information to empower their decision-making. R&D has added genetic information and digital capability to its toolset. The end product has broadened beyond the pill to include health outcomes enabled by digital devices and therapeutics. And the competitive set has seen the addition of technology players, including consumer-focused apps and online services, as well as digital health and digital therapeutics firms.</p>
<p class="photo-frame text-center"><img style="width: 100%;" src="/assets/rbccm/images/gib/healthcare/Healthcare-Article-3-Graph-1.png" alt="" /></p>
<h3>A Changing Ecosystem</h3>
<p>Indeed, digital and AI applications are radically changing key areas of the biopharma ecosystem and how patients manage their healthcare.</p>
<p>In pre-clinical research, technology is enabling everything from a deeper mining of literature, to predictive modeling and gene-function annotation. Digital apps are simulating molecular dynamics and pushing the limits of cellular imaging.</p>
<p>In clinical trials, digital transformation is helping to automate testing procedures, build global patient databases and collect real-world data.</p>
<p>In diagnostics, tech powers digital pathology, home-based body diagnosis, and computational analysis of tissue arrays. Just like your car leaves the factory with hundreds of sensors that can trigger the check engine light, humans will have wearable and/or implantable sensors to alert them when something is not functioning properly. Another burgeoning area is immune cell monitoring and digital analysis through just a finger prick.</p>
<p>At the point of patient care, digital applications are already delivering virtual consultations, remote monitoring, VR-based cognitive therapy and digital Rx. Demand for telehealth services and health-based social platforms is also increasing and especially vital in a world facing new challenges such as the COVID-19 pandemic.</p>
<p><img src="/assets/rbccm/images/gib/healthcare/healthcare-article-3-graph-2.png" alt="AI and Digital applications are changing key areas of the Healthcare Ecosystem" /></p>
<div id="similar-to-this" style="border-top: 2px #E6E6E7 dotted; border-bottom: 2px #E6E6E7 dotted; margin: 35px 0; padding: 25px;">
<h4 style="font-size: 18px; letter-spacing: 0.5px; border-bottom: 3px #FEDF01 solid; padding: 0 0 8px 0; margin-bottom: 15px;">Similar to this</h4>
</div>
<h3>Digital Transformation</h3>
<p>The digital revolution presents both threats and opportunities to incumbent biopharma companies. Tech is powering efficiencies in all stages of the current ecosystem and is also enabling healthcare providers to expand their capabilities from treatment to prevention.</p>
<div class="quotebox">
<p>“Tech is powering efficiencies in all stages of the current ecosystem and is also enabling healthcare providers to expand their capabilities.”</p>
<p class="attribution" style="color: #0070a3;">– Greg Wiederrecht, Ph.D.</p>
<div class="quote-share">
<p style="display: inline-block;"><span style="margin-right: 15px;">Share </span><a class="blue-circle-outline-sm" href="https://www.linkedin.com/shareArticle?mini=true&url=https%3A//www.rbccm.com/en/gib/healthcare/episode/new_healthcare_business_models_emerge&title=New%20healthcare%20business%20models%20emerge&source=www.rbccm.com" target="_blank" rel="noopener" aria-label="Connect by LinkedIn"><em class="fa fa-linkedin" style="color: #0051a5; margin-left: 3px;"> </em></a> <a class="blue-circle-outline-sm" href="https://twitter.com/home?status=New%20business%20models%20emerge%20https%3A//www.rbccm.com/en/gib/healthcare/episode/new_healthcare_business_models_emerge" target="_blank" rel="noopener" aria-label="Connect by X"><em class="fa fa-twitter" style="color: #0051a5; margin-left: 3px;"> </em></a> <a class="blue-circle-outline-sm" href="mailto:?subject=New%20business%20models%20emerge&body=I%20found%20this%20insights%20piece%20from%20RBC%20Capital%20Markets%20informative%20and%20thought%20it%20might%20be%20of%20interest%20to%20you%3A%0D%0Dhttps%3A//www.rbccm.com/en/gib/healthcare/episode/new_healthcare_business_models_emerge&title=New business models emerge" aria-label="Connect by Email"><em class="fa fa-envelope" style="color: #0051a5; margin-left: 3px;"> </em></a></p>
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<p> </p>
<p>The increased digitization of human experiences gives access to a wealth of information and knowledge that could help intervene before disease has a chance to strike. A prime example of this is collating data from an Apple Watch to screen for irregular heart rhythms and detect undiagnosed atrial fibrillation. At the other end of the spectrum, digital transformation allows a completely new class of therapies such as digital therapeutics to support specific disorders.</p>
<p>McKinsey and Company’s international survey shows that more than 75% of patients expect to use digital healthcare services in the future.<sup>1</sup> Patients are seeking technology that delivers a level of care they can rely on and trust. Ultimately, the aim of the digital revolution is to develop healthier societies and lower the cost of care.</p>
<p style="word-wrap: break-word;"><sup>1 Source: McKinsey and Company, Healthcare’s Digital Future, July 2014. https://www.mckinsey.com/~/media/McKinsey/Industries/Healthcare%20Systems%20and%20Services/Our%20Insights/Healthcares%20digital%20future/Healthcares%20digital%20future.ashx</sup></p><ul>
<li>Customer groups, R&D and competitors are all rapidly expanding</li>
<li>Tech is reinventing every facet of the biopharma ecosystem</li>
<li>Innovations in patient care is driving adoption of digital services</li>
</ul>text2 min1 minHealthcare Models, Digital Healthcare, Digital Healthcare Apps, Digital Health Diagnostics, Expanding R&D, Healthcare & Tech Convergence, Healthcare Services, Clinical Trials, Remote Patient Monitoring, Digital Therapeutics, Biopharma ecosystem, Cost of CareN/templatedata/rbccm/episode/data/healthcare/amazon_cvs_and_google_healthcare_reimagined/templatedata/rbccm/episode/data/healthcare/big_tech_vs_big_pharma/templatedata/rbccm/episode/data/healthcare/the_healthcare_data_explosionGreg Wiederrecht, Ph.D./assets/rbccm/images/gib/healthcare/greg-wiederrecht.jpgManaging Director, Healthcare Investment Bankinggreg.wiederrecht@rbccm.comhttps://www.linkedin.com/in/gregwiederrecht/Sasson Darwish/assets/rbccm/images/gib/healthcare/sasson-darwish.jpgManaging Director, AI, Analytics and IoT & Israel Country Coverage, Global Technology Investment Bankingsasson.darwish@rbccm.com https://www.linkedin.com/in/sassdarwish/Andrew Callaway/assets/rbccm/images/gib/healthcare/andrew-callaway.jpgManaging Director, Global Head of Healthcare Investment Bankingandrew.callaway@rbccm.comhttps://www.linkedin.com/in/andrew-cal-callaway
By Valerie Grimba Featuring Bill Bamber Published | 1 min
read
Key points
Covered call ETFs are increasingly sought after, as Canada's aging demographic are seeking consistent cash flow.
The do it yourself investor segment is the fastest-growing channel, placing new emphasis on industry education efforts.
The ETF industry is expanding beyond passive index tracking into active management, thematic strategies, alternative investments, and options-based solutions.
Y
As the covered call space expands, these income-focused strategies have become essential to portfolio construction – particularly for an aging population demanding consistent cash flow in volatile markets.
Unlike traditional dividends or fixed income, covered call strategies deliver a unique combination: market participation coupled with enhanced income generation through option premium collection. Over a decade ago, BMO Global Asset Management pioneered Canada's covered call exchange-traded fund market. The space has flourished since, with expanded offerings meeting investor preferences for both market participation and enhanced returns. Today's environment of volatility, elevated interest rates, and shifting retirement preferences has accelerated demand for these strategies.
“Covered calls are one part of what I call the holy trinity of income solutions: fixed income, dividends, and covered calls. For investors in this country, particularly with an aging demographic, the demand for income solutions to meet certain needs is paramount.”
Bill Bamber, CEO, BMO Global Asset Management
BMO Global Asset Management's ETF strategy reflects years of refinement driven by direct investor feedback, product innovation, digital engagement, and investor demand for smarter, more accessible solutions. ETFs now reach into areas such as private credit, real assets, and options-based strategies, bringing institutional-grade capabilities to retail investors. They democratize access to sophisticated investment strategies, empowering retail investors and younger generations inheriting wealth. As macroeconomic uncertainty persists, investors will increasingly seek tools to protect purchasing power and navigate volatile markets.
About ETF Innovators
ETF Innovators is a short-form video series hosted by Valerie Grimba, Director, Global ETF Strategy, that spotlights how RBC clients are driving innovation in ETFs. The series tracks the evolution of the global ETF landscape and spotlights the leaders, ideas, and strategies powering the next wave of performance.
This communication has been prepared by RBC Capital Markets (“RBCCM”) sales personnel for institutional clients and is not a research report prepared by the RBCCM Research Department. It is for distribution to institutional clients only and is not intended for retail customer use. This material is provided for information purposes only and does not bind RBCCM in any way. Unless otherwise specified, the views expressed herein are the author’s and may differ from the views of RBCCM’s Research Department and from the views of others within RBCCM. The information in the body of this communication is intended to provide general company and/or market commentary, is not intended to provide a sufficient basis for an investment decision and should not be considered a research report. This material may include references to recently published research notes and reports by RBCCM’s Research Department. Complete research notes and reports, including important conflicts disclosures, are available at https://www.rbcinsightresearch.com/. You should assume that RBCCM or its affiliates makes markets and/or holds positions, and may have conducted underwriting or other investment banking work, in any of the securities referenced herein. Information contained herein has been compiled by RBCCM from sources believed to be reliable, but no representation or warranty, express or implied, is made as to its accuracy, completeness or correctness. Every province in Canada, state in the U.S., and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents, as well as the process for doing so. As a result, the securities discussed in this communication may not be eligible for sale in some jurisdictions. To the full extent permitted by law neither RBCCM nor any of its affiliates or any other person accepts any liability whatsoever for any direct, or indirect or consequential loss or damage arising from any use of the information contained herein. No matter contained in this communication may be reproduced or copied by any means without the prior consent of RBCCM.
RBC Capital Markets is the global brand name for the capital markets business of Royal Bank of Canada and its affiliates. United States: This communication has been approved by RBC Capital Markets, LLC (member FINRA, NYSE, SIPC), which is a U.S. registered broker-dealer and which accepts responsibility for this communication and its dissemination in the United States. Any U.S. recipient of this communication that is not a registered broker-dealer or a bank acting in a broker or dealer capacity and that wishes further information regarding, or to effect any transaction in, any of the securities discussed in this communication, should contact and place orders with RBC Capital Markets, LLC.
IMPORTANT DISCLOSURE: THIS COMMUNICATION HAS BEEN GENERATED BY AN EMPLOYEE OF RBCCM AND IS BEING CONVEYED TO YOU AS A "SOLICITATION" FOR ENTERING INTO A DERIVATIVES TRANSACTION, ONLY AS THAT TERM IS USED IN 17 CFR §§1.71(a)-(c) AND 23.605 (the “CFTC Rules”). Except to the extent covered by the CFTC Rules, this communication is not intended as a recommendation or an offer or solicitation for the purchase or sale of any security or financial instrument. This communication is not a research report or a product of RBCCM's Research Department. Canada: RBC Dominion Securities Inc. (member CIRO and CIPF). France: RBC Paris Branch, RBC Capital Markets (Europe) GmbH Paris Branch are regulated by the Autorité de Contrôle Prudentiel et de Résolution and the Autorité des Marchés Financiers. Germany: This publication has been approved by RBC Capital Markets (Europe) GmbH, which is a company authorized by BaFin. United Kingdom: This publication has been approved by RBC Europe Limited, which is authorized by the Prudential Regulation Authority (“PRA”) and regulated by the Financial Conduct Authority and PRA. Hong Kong: Royal Bank of Canada, Hong Kong (regulated by HKMA and SFC). Australia: Royal Bank of Canada, Sydney Branch (regulated by the Australian Securities & Investments Commission and the Australian Prudential Regulation Authority; AFSL 246521; ABN 86 076 940 880). This document is distributed only to persons who satisfy the definition of wholesale client for the purposes of the Corporations Act 2001 and not intended for distribution to retail clients. Japan: Securities business (as defined under the Financial Instruments and Exchange Law) in Japan will be carried out by RBC Capital Markets (Japan) Ltd. in compliance with all applicable laws and regulations. RBC Capital Markets (Japan) Ltd. is a Financial Instrument Dealer registered with the Kanto Financial Bureau (Kinsho #203) and a member of Japan Securities Dealers Association (“JSDA”) and the Financial Futures Association of Japan (“FFAJ”). Banking business (as defined under the Banking Law) in Japan will be carried out by Royal Bank of Canada, Tokyo Branch in compliance with applicable laws and regulations. Singapore: Royal Bank of Canada, Singapore Branch (regulated by the Monetary Authority of Singapore).
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