Ross Map Team: Nick Adam Prakhar Goel Shlomi Barsheshet Samuel Hsiao Jessy Cheng Dave Lilly

1. Wellness + Prevention, Inc.+ Ross MAP Team =The Future of Healthcare and Prevention Ross Map Team: Nick Adam Prakhar Goel Shlomi Barsheshet Samuel Hsiao Jessy Cheng Dave Lilly

2. Agenda Market Overview Methodology Product Categories Recommendations

3. Evolving healthcare market presents fantastic opportunities for W&P Future Healthcare Market Current Healthcare Market Institutional Payers Empowered Consumers Increased Consumer Power Increased Consumer Power Opportunities to: Help payers develop direct-to-consumer relationships Help consumers navigate the health exchanges and identify appropriate plans 48 mil ppl purchasing individual policies through HEs4 81% of US pop covered by Employers or Public Programs1 Preventative Care Sick Care $243 Billion spent on Obesity and Smoking Related Diseases2 71 mil ppl gained access to preventive services5 Shift to Prevention Opportunity for Wellness Programs to receive referrals from payers, employers and healthcare practitioners Inefficient More Efficient Shift to Prevention 21% – 47% of HC spending is wasted3 $77 Billion saved as a result of HIT solutions6 Rise in Health Information Technology Opportunity to use patient data in order to improve outcomes and efficiency of care The Rise of Health Information Technology 1 – http://www.ebri.org/pdf/briefspdf/EBRI_IB_09-13.No390.Sources.pdf 2 – http://www.medworkohio.com/pdfs/Smoking%20&%20Obesity%20Effects%20on%20Health%20Care%20Costs%20JOEM%203-12.pdf 3 – Includes failure to provide and coordinate appropriate care, overtreatment, administrative complexity, pricing failures and fraud. http://news.medicine.duke.edu/wp-content/uploads/2013/08/Eliminating-Waste-in-US-Healthcare-Berwick.pdf 4 – http://www.census.gov/newsroom/releases/pdf/20130917_ipslides.pdf 5 – At no cost* http://www.hhs.gov/healthcare/facts/factsheets/2011/08/womensprevention08012011a.html 6 – http://www.rand.org/content/dam/rand/pubs/research_briefs/2005/RAND_RB9136.pdf

4. W&P needs to move quickly to capture opportunities Strong Alignment Medium Alignment Weak Alignment Moving in the right direction with planned social and gaming reinforcements Evaluate shifting focus to D2C approach Need to gain access to HIT data

5. The MAP team is here to help • Identify high value product categories: • Perform market scan of emerging technologies • Identify categories that marry well with the trends • Create methodologies to shortlist the most important categories • Identify companies/ products that W&P could further explore • Deliver final recommendation for W&P

6. Recommendation Macro Overview • 35 Product Categories • 5 Key Categories Creating structure for a broad landscape • W&P Opportunity • Analysis • Primary Research • Weighted Scoring System • Secondary Research • Technology Assessment • Weighted Scoring System • Key Stats: • 20+ interviews in 3 weeks • 400+ hours of research • Notable Interviewers • Dr. BertalanMesko, MD, PhD, TedTalkSpeakder, Medical Futurist • Prof. Thomas Buchmueller, Ross Professor Healthcare • Nick DeHann, Tech Mining Specialist at U of M Medical School • Prof. Afton Hassett, psychologist, Research Scientist at U of M Anesthesiology • Sean McClellan, PhD, Fellow at Palo Alto Medical Research Institude • Notable Publications • Forrester • Frost & Sullivan • Deloitte • McKinsey • Booz Allen Hamilton • Survey • Criteria • Scalability – Is this product category scalable? • Adoptability – How widely will the product category be used by its target population? • Fit – Good strategic fit for W&P products? • Time to Market – How likely is this product category going to be in the market within 5 yrs? • Engagement – Could this product category increase W&P's engagement with its consumers? • Market Impact – How big of an impact?

7. Healthcare is filled with exciting growth opportunities • Artificial Organs • Evidence-based Mobile Health • Humanoid Robots • Telemedicine • Virtual Dissection • Redesigned Hospital Experience Curated Health Records • Inter-disciplinary Therapies • No touch interface • External Sensors - Wearable E Skin • Real-Time Diagnostics in the OR • Smartwatch • Home Diagnositics/Medical Tricorder • Virtual Digital Brains • DIY Biotechnology • Augmenting Human Capabilities • Artificial Intelligence • Holographic Data Input • Multi-functional Radiology • Meaningful Use of Social Media • Full Physiological Simulation • Robotic Interventions • Virtual Trials • Digestible Sensors • Personalized Genomics • GamificationBased Wellness • Augmented Reality • NanoRobots in Blood • Digital Literacy In Medical Education • Recreational Cyborgs • Virtual Reality Application • Optogenetics • Remote Touch • 3D Printed Biomaterials and Drugs • Robotic Nurse Assistant

8. The most compelling new products are…. • Artificial Organs • Evidence-based Mobile Health • Humanoid Robots • Telemedicine • Virtual Dissection Curated Health Records • Redesigned Hospital Experience • Inter-disciplinary Therapies • No touch interface • External Sensors - Wearable E Skin • Real-Time Diagnostics in the OR • Smartwatch • Home Diagnositics/Medical Tricorder • Virtual Digital Brains • DIY Biotechnology • Augmenting Human Capabilities • Artificial Intelligence • Holographic Data Input • Multi-functional Radiology • Meaningful Use of Social Media • Full Physiological Simulation • Robotic Interventions • Virtual Trials • Digestible Sensors • Personalized Genomics • GamificationBased Wellness • Augmented Reality • NanoRobots in Blood • Digital Literacy In Medical Education • Recreational Cyborgs • Virtual Reality Application • Optogenetics • Remote Touch • 3D Printed Biomaterials and Drugs • Robotic Nurse Assistant • Digestible Sensors • Augmented Reality Curated Health Records

9. The most compelling new products are…. Curated Health Records • External Sensors - Wearable E Skin • Personalized Genomics • Digestible Sensors • Augmented Reality

10. How will we assess these opportunities? How the product category fits with W&P? • Value Proposition – Strengths and Opportunities • Considerations – Threats and Weaknesses What can W&P do next? • Product/Company • Evaluate the solution • Opportunities Why is the product category significant? • Benefit to Healthcare • Growth Potential • Distinct Features Technology Assessment Framework Extremely Good Good Neutral

11. New applications of augmented reality can be used to increase end-user engagement In Augmented Reality the live view of real-world environment is amplified by computer-generated input Why is Augmented Reality significant? • Maximizes engagement by revolutionizing the way in which information is gathered and shared • Gather information and respond in real time • High potential for growth: • Existing tech that is expected to become mainstream in near future1 • Demand is forecasted to be high: 200M app users by 20182 • Platform for new applications: • Social Media • Games • Fitness 1. http://search.proquest.com/docview/1508441687# 2.http://www.itp.net/595668-augmented-reality-set-for-take-off#.U1hSDPldU1o

12. Augmented Reality improves effectiveness of wellness programs • Value Proposition • More accurate capture of user activities • Instant feedback to the user • Opportunity to incorporate behavior science • Considerations • Shift to direct-to-consumer business model • Dependency on external platforms • Competition with other fitness apps W&P should use extensive in-house behavioral & health science knowledge and data to customize health and wellness Augmented Reality solutions

13. RaceYourself will drive engagement by gameifying exercise • Weaknesses: • Currently only developed for Google Glass • Early stage startup • Lack of demonstrated success • Strengths: • A pioneering app • Beta is already available • Can develop many different kinds of games Opportunity: Develop “gamified” fitness app that tracks wellness activities and uses tailored messaging to improve results • Developer of Augmented Reality fitness apps • Aims to challenge and motivate racers by making them race 3D avatars

14. Curated Health Records will be a core component of health care in the future HIE Curated Health Records (CHRs) contain relevant, accurate patient health information that can be shared instantaneously between providers, payers and patients. They are an integral part of HIT systems. Why are CHRs significant? • Significant benefits to healthcare industry: • Better Patient Outcomes1 • Guaranteed growth: • Increased Cost Savings2 • Rapid Adoption of EHRs: 21.8% of physicians in 2009  48.1% in 20133 • Core component of HITECH Act of 2009 1 – Buntin MB, Burke MF, Hoaglin MC, Blumenthal D (2011) Health Aff. (Millwood) 30:464–471. 2 – Adler-Milstein J, Salzberg C, Franz C, Orav EJ, Newhouse JP, Bates DW (2013) Ann. Intern. Med. 159:97–104 3 – http://www.cdc.gov/nchs/data/databriefs/db143.pdf

15. W&P programs could integrate well with CHRs and patient portals

16. With CHRs, W&P can improve the lives of large numbers of patients • Value Proposition • More tailored products • Improved data accessibility and accuracy • Track improvements over time • Positioned for the future • Additional distribution channel for rollout of future capabilities • Exposure to new advancements in healthcare • Large and growing # of referrals • Considerations • Identify the right partner • Complex / costly implementations • Is W&P practicing medicine Integrate with CHR systems in order to: Consume EHR Information Offer wellness programs through patient portals

17. Integrate with EPIC HIT Solutions to gain access to UMich Health Services • Strengths • Premier HIT solution1 • 260 customers2 • 130 mil EHRs2 • Common partners • Kaiser Permanente • UMich Health Services • Friendly Patient Portal • Weaknesses • Other focuses • No sales / marketing team • Closed software platform • No Wellness Programs Opportunity: Incorporate W&P programs into Epic’s patient portal Leverage common partners to appropriate stakeholder Epic offers HIT solutions for mid-to-large sized medical groups, hospitals, and integrated healthcare systems 1 – http://www.epic.com/recognition-klas.php 2 – http://www.forbes.com/sites/zinamoukheiber/2012/04/18/epic-systems-tough-billionaire/

18. Digestible & Embedded sensors save money and lives by monitoring the body from the inside • Why are digestible sensors significant? • Real time analysis from within body • Huge potential for growth in 2 areas • Wellness and Prevention • Wellness and Diagnostics Devices - 34.25 M devices – 2015, 170 M devices - 2017 • Medical Adherence – Track and remotely control drug adherence. • Save $289 B and potentially 125,000 lives each year Easily accepted by the body internally and are used to track various vital statistics of the entire body and/or particular organs. 1 http://www.businessweek.com/articles/2013-03-28/take-your-pills-reminders-from-apps-and-gadgets

19. Digestible sensors provide opportunity for increased user engagement & new markets • Considerations • Early Stage technology – reliability and scalability concerns • Requires advance data analytics engine • Privacy and Data Abuse Concerns • Value Proposition • Internal data delivers meaningful digital coaching • Leverage J&J home diagnostics distribution channel • Extend product line to include medical adherence • Premium HRA offering through 24x7 monitoring Integrate digital health coaching and real time data to add more depth to the information disbursed to the end user through customized and actionable recommendations

20. As pioneers in the digital health sensor industry, Proteus is an attractive partner • Weaknesses • Potential acquisition expensive - Pioneer in digital health sensors • Potential high cost to customer • Strengths • Executive Team – Medical startups and health practice expertise • Investor Panel – Novartis, Otsuka, and Oracle • Gained FDA approval • Opportunity: • Explore partnership through data-licensing Proteus Health • Records a person’s heart rate, body position, and activity level • Sensor collects data in stomach, communicates to the body patch, and shares data via Bluetooth

21. External sensors are quickly gaining market share as consumers pursue a healthier lifestyle http://www.telecomengine.com/article/wearable-tech-makers-ship-10-million-units-2014-deloitte http://www.idc.com/getdoc.jsp?containerId=2473182. 2.http://www.hitconsultant.net/2013/11/22/infographic-the-future-of-wearable-technology-in-healthcare/ Sensors that are worn on the user’s body to accurately collect information such as blood pressure, heart rate, calories burned, and sleep patterns. Why are external sensors significant? • Can analyze and relay data in real time to impact consumer behavior • Affordable, price range from $140-$500 per unit1 • Explosive growth: • 20M shipments in 2014 and 112M by 20182 predicted • Exciting economic opportunities: $1.4B market in 2013 and $19B by 20183 • Leading consumerization and prevention trends

22. External sensors offer an opportunity to collect biometric data in a non-invasive manner • Value Proposition • Strong compatibility with existing digital health coaching (e.g., weight management, physical activity, eating and sleep disorder) • Data accuracy and quality • Increase consumer engagement through continuous usage; 24/7 monitoring • Leverages popularity of demand • Considerations • No competitive advantage • High competition • Data security W&P can collect real-time personal data from external sensors and offer continuous feedback to drive behavior change.

23. Basis offers a bundle of features unrivaled in the market • Strengths: • Goes beyond data capture; drive behavior change • Wide features available (heart rate, skin temperature, perspiration) and can recommend goals • Weaknesses: • Hard to substitute smartphone (smart-watch is like a smartphone but with limited features) • Highly competitive space Opportunity: Partner with Basis and utilize data from their smart-watches to provide tailored feedback to clients. Basis Wristband that contains advanced sensors which captures heart rate, motion, calorie expenditure by activity.

24. Low cost gene sequencing paves the way for Personal Genomics • Rapid cost reduction • Exponential Growth: 10m by 2016 and 100m by 2020* • Policy Promotion: Supreme Court ruling promotes information sharing *Association for Molecular Pathology vs. Myriad Genetics **Transparency Market Research, 2012 Personalized diagnostic, treatment and prevention plan for individuals based on gene sequence Why is personal Genomic significant? Holistic Data Predictive Nature: 3000+ diseases

25. Nutrigenomics has the potential to enhance W&P’s existing value proposition • Value Proposition • Extensive personalization increases engagement • Early mover advantage • Existing knowledge from other J&J subsidiary: Janssen Pharmaceuticals • Low consumer cost* • Considerations • Limited wellness-related gene analysis completed • FDA regulations *Cited from Booz Allen Hamilton Report “Market Trends in Genetic Services” Digital Coaching - Enhance existing coaching product by customize diet and exercise plans according to individual’s gene type HRA - Automate and improve accuracy of HRA by accepting genome data import

26. Turning a failing competitor into a winning venture Most Popular Product: Weight Management Report • Weaknesses • Lack of depth in report • No follow-ups or tracking • No relationship with healthcare • providers • No consumer marketing • expertise • Strengths • Existing product • Low Cost: $169 • Product awareness • Strong patent portfolio Opportunity: Add-on Inherent Health to existing coaching program. Leverage W&P’s existing relationships, marketing expertise to promote program Inherent Health Personalized coaching programs based on Interleukin Genetics test

27. With so many opportunities, where should W&P start? Good Extremely Good Neutral

28. The MAP team recommends integrating with CHRs because … • CHRs will play an important and pervasive role in the future of healthcare • By integrating W&P solutions with CHR, W&P could: • Reach many users very quickly • Improve quality of its products and lives of its users • Position itself to take advantage of the future of the healthcare • There’s a good strategic fit between W&P and HIT companies such as EPIC

29. Next Steps - Recommendation • Conduct CHR due diligence • Research market size, risk, and potential synergies • Understand potential revenue streams • Ensure W&P meets compliance standards • Assess market entry strategies (i.e. greenfield, joint venture, licensing) • Initiate conversation with Epic • Identify appropriate stakeholders within Epic through Kaiser Permanente and UMich Health Services • Understand cost of partnership & decide level of relationship

30. Summary Market Overview • Consumerization, HIT and Preventative health trends create growth opportunities for W&P Methodology • Systematic framework narrows • ∞ > 35 > 5 emerging technologies Product Categories • 5 emerging technologies represent significant opportunities for W&P Recommendation • CHRs’ timing and fit with W&P tops our recommendation

31. Q&A Thank You

32. Appendix (1) References: Global Augmented Reality Market 2014- 2018, (2014, March 19). Retrieved from: http://search.proquest.com/docview/1508441687# Roger Field, (2013, November 13). Augmented Reality Set for take off. Retrieved from http://www.itp.net/595668-augmented-reality-set-for-take-off#.U1hSDPldU1o BuntinMB, Burke MF, Hoaglin MC, Blumenthal D (2011) Health Aff. (Millwood) 30:464–471. Adler-Milstein J, Salzberg C, Franz C, Orav EJ, Newhouse JP, Bates DW (2013) Ann. Intern. Med. 159:97–104 Chun-Ju Hsiao, PhD., and Esther Hing, M.P.H., (2014, January ). NCHS Data Brief, No. 143, Use and Characteristics of Electronic Health Records Systems Among Office-based Physician Practices: United States, 2001-2013 Retrieved from: http://www.cdc.gov/nchs/data/databriefs/db143.pdf KLAS’ 2013 Best in KLAS Report rated Epic as the #1 Overall Software Suite based on 25 separate performance measures across multiple enterprise categories. Retrieved from: http://www.epic.com/recognition-klas.php ZinaMoukheiber, (2012, April 12). Epic Systems’ Tough Billionaire. Retrieved from : http://www.forbes.com/sites/zinamoukheiber/2012/04/18/epic-systems-tough-billionaire John Tozzi, (2013, March 28). Take Your Pills’ Reminders From Apps and Gadgets. Retrieved from: http://www.businessweek.com/articles/2013-03-28/take-your-pills-reminders-from-apps-and-gadgets Iain Morris, (2014, January 15). Wearable tech makers to ship 10 million units in 2014: Deloitte. Retrieved from: http://www.telecomengine.com/article/wearable-tech-makers-ship-10-million-units-2014-deloitte Ramon T. Llamas, (2014, March). Worldwide Wearable Computing Device 2014-2018 Forecast and Analysis. Retrieved from: http://www.idc.com/getdoc.jsp?containerId=247318 Jasmine Pennic, ( 2013, November 22). Infographic: The Future of Wearable Technology in Healthcare. Retrieve from: http://www.hitconsultant.net/2013/11/22/infographic-the-future-of-wearable-technology-in-healthcare/ Association for Molecular Pathology vs. Myriad Genetics Transparency Market Research, 2012 Timathie Leslie, Daniel Agar, Sarah Feilding, and Sophie Miller, (2013), Market Trends in Genetic Services, Impacting Clinical Care through Better Prediction, Detection, and Care Selection. Retrieved from: Booz Allen Hamilton Report “Market Trends in Genetic Services”

33. Appendix (2) References: Brian Nichols, (2014, March 22). Which Company Has the Most to Gain in Wearable Technology. Retrieved from: http://www.fool.com/investing/general/2014/03/22/which-company-has-the-most-to-gain-in-wearable-tec.aspx Wearable Technology – Market Assessment, An IHS Whitepaper, (2013, September). Retrieved from: http://www.ihs.com/pdfs/Wearable-Technology-sep-2013.pdf Maude Standish, (2013, April 22). How Will Wearable Technology Disrupt Us? Retrieved from: http://www.metropolismag.com/Point-of-View/April-2013/How-Will-Wearable-Technology-Disrupt-Us/ Bill Wasik, (2013, December 17). Why Wearable Tech Will Be as Big as the Smartphone. Retrieve from: http://www.wired.com/2013/12/wearable-computers/ Study: Wearable tech market to gain strength in 2014, (2014, April 11). Retrieved from: http://latino.foxnews.com/latino/news/2014/04/11/study-wearable-tech-market-to-gain-strength-in-2014/ Tony Rizzo, (2014, January 15) Wearable Technology Market Will Ship at Least 10 Million Units in 2014, 100+ Million by 2020. Retrieve from: http://www.wearabletechworld.com/topics/from-the-experts/articles/366740-wearable-technology-market-will-ship-least-10-million.htm Louise Taylor, (2014, February 21). Wearable technology in business: big data benefits bring legal and privacy risks. Retrieved from: http://www.v3.co.uk/v3-uk/opinion/2329804/wearable-technology-in-business-big-data-benefits-bring-legal-and-privacy-risks Proteus Digital Health: http://www.proteus.com/technology/frequently-asked-questions/ Anthony Shih MD, M., Julia A. Berenson, M., & Melinda Abrams, M. (2012, April 18). Preventive Care and the Affordable Care Act. Retrieved from Medscape Multispecialty: http://www.medscape.org/viewarticle/762139_1 Congressional Budget Office. (2014). Insurance Coverage Provisions of the Affordable Care Act—CBO’s April 2014 Baseline. Washington DC: Congressional Budget Office. Control, C. f. (2013, September). Preventable Deaths from Heart Disease & Stroke. Retrieved from Center for Disease Control: http://www.cdc.gov/vitalsigns/pdf/2013-09-vitalsigns.pdf

34. Appendix (3) References: Medicine, N. R. (2013). U.S. Health in International Perspective: Shorter Lives, Poorer Health. Washington DC: The National Academies Press. Nichols, B. (2014, March 22). Which Company Has the Most to Gain in Wearable Technology? Retrieved from www.fool.com: http://www.fool.com/investing/general/2014/03/22/which-company-has-the-most-to-gain-in-wearable-tec.aspx Rabin, R. C. (2012, August 26). Kaiser Health News. Retrieved from Hospitals Look To Become Insurers, As Well As Providers Of Care: http://www.kaiserhealthnews.org/stories/2012/august/26/hospital-insurers.aspx Stephen C. Schimpff, M. (2012, March 1). A sick care system instead of a health care system. Retrieved from medpageToday's KevinMD.com: http://www.kevinmd.com/blog/2012/03/sick-care-system-health-care-system.html The World Bank. (2012). Health expenditure, total (% of GDP). Retrieved from The World Bank, working for a world free of poverty: http://data.worldbank.org/indicator/SH.XPD.TOTL.ZS/countries/1W?order=wbapi_data_value_2012%20wbapi_data_value%20wbapi_data_value-last&sort=desc&display=default United States Census Bureau. (2013, September). Income, Poverty, and Health Insurance Coverage: 2012. Retrieved from Census.gov: http://www.census.gov/newsroom/releases/pdf/20130917_ipslides.pdf Wayne, A. (2014, March 18). How Is Obamacare Affecting Competition Among Health Insurers? Retrieved from Insurance Journal: http://www.insurancejournal.com/news/national/2014/03/18/323575.htm

35. Appendix (4) Technology Assessment:

36. Appendix (5) Technology Assessment (continued):

37. Appendix (6) Technology Assessment (continued):