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 Travis Hughes Published | 2 min
read
Key points
The global ETF industry crossed US$1 trillion in flows by late-2025, with accelerated adoption and unprecedented growth in the world's fastest-expanding investment vehicle.
J.P. Morgan Asset Management dedicates US$500 million technology budget and over 1,500 specialists to build and maintain technology platforms with AI capabilities.
The firm's proprietary platform gives portfolio managers access to 40+ years of research data and analyst insights.
Y
Global ETF flows surpassed US$1 trillion in October 2025[1], as investors continue to shift money away from traditional mutual funds toward lower-cost, more liquid alternatives. This milestone reflects a fundamental shift in how investors access markets.
Travis Hughes, Head of Canada at J.P. Morgan Asset Management, leads the firm's charge to drive innovation across this expanding landscape. The firm has a large technology budget focused on innovation. This investment, combined with access to J.P. Morgan's broader US$17 billion technology ecosystem, enables the firm to leverage decades of analyst research and deliver actionable intelligence to portfolio managers.
The firm's active ETF offerings exemplify this evolution. J.P. Morgan Asset Management operates the largest active equity and active fixed-income ETFs in the U.S. These products combine the security selection and research-driven insights of active management with the liquidity and cost benefits of the ETF wrapper. "The active ETF marries the best of both worlds," Hughes says. For investors, this means access to sophisticated active strategies without the operational friction and higher costs of traditional mutual funds.
Looking ahead, one of the most transformative developments in the ETF industry is the introduction of private investments, including private equity, private credit, and real estate, into ETF structures. These vehicles promise to democratize access to asset classes historically reserved for institutional and high-net-worth investors. By pooling capital and leveraging ETF mechanics, issuers are exploring how to offer meaningful private asset exposure to retail investors while preserving the transparency and liquidity that define the ETF model.
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.
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