Digital Health
Definition
The convergence of digital technologies with healthcare, encompassing telemedicine, electronic health records, wearable devices, AI-assisted diagnostics, digital therapeutics, and health data analytics. Digital health companies create significant intangible asset value through proprietary algorithms, patient data assets, regulatory approvals, and clinical evidence — all of which require specialist valuation approaches.
Complementary Terms
Concepts that frequently appear alongside Digital Health in practice.
The strategic adoption of digital technologies to fundamentally change how a business operates, delivers value, and competes. Digital transformation involves significant investment in intangible assets — including software, data infrastructure, process redesign, and workforce skills — and is a primary driver of productivity improvement in modern enterprises.
A virtual representation of a physical asset, process, or entire business operation that uses real-time data and simulation to mirror its real-world counterpart. Digital twins enable predictive maintenance, scenario modelling, and operational optimisation.
Intangible assets that exist in digital form and contribute to business value, including software platforms, mobile applications, websites, digital content libraries, algorithms, and automated workflows. Digital assets are increasingly the primary value drivers in modern businesses.
A virtual representation of a physical asset, process, or system that is continuously updated with real-time data. Digital twins are increasingly recognised as valuable intangible assets that enhance operational productivity, enable predictive maintenance, and accelerate product development.
An economic model built around digital platforms that create value by facilitating exchanges between two or more user groups. Platform businesses derive the majority of their enterprise value from intangible assets including network effects, proprietary algorithms, user data, and brand trust.
The regulatory categorisation system that assigns medical devices to classes based on their risk to patients, which determines the level of regulatory scrutiny required for market approval. The EU MDR uses four classes (I, IIa, IIb, III) while the FDA uses three (I, II, III).
A regulatory status granted to drugs developed to treat rare diseases affecting small patient populations, providing incentives such as market exclusivity (7 years in the US, 10 years in the EU), tax credits on clinical trial costs, and reduced regulatory fees. Orphan drug designation significantly enhances the economic value of a pharma intangible asset by creating protected market positions.
A valuation methodology that estimates the value of an asset based on observed prices in actual market transactions involving comparable assets. The market approach is used to value intangible assets when reliable transaction data or licensing royalty rates are available, and is one of the three primary approaches alongside the income and cost approaches.
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