Alphabet GOOGL is making every effort to capitalize on the growing dependence of healthcare sector on AI and tools like machine learning (ML), Augmented Reality/ Virtual Reality and Big Data analytics.

The company’s plethora of healthcare initiatives is likely to intensify the competition further in this lucrative space which also includes tech giants like Amazon AMZN and Apple AAPL.

An Overview of the Google-Sanofi Deal

Alphabet division Google’s latest partnership with Sanofi SNY is reflective of the company’s aggressive stance toward disrupting the healthcare sector and pharmaceutical industry.

Per the partnership terms, Sanofi will leverage Google’s cloud and AI technologies and integrate them into its biological innovations and scientific data which in turn will accelerate the medicine discovery process.

Further, the collaboration will aid in the identification of various type of treatments suitable for patients. Additionally, Google’s AI tools are likely to be utilized by Sanofi in improving marketing and supply efforts and in forecasting sales.

Alphabet’s Pursuit of Dominance

Apart from the latest collaboration on drug discovery, Alphabet’s healthcare division, Verily has teamed up with Novartis, Sanofi, Otsuka and Pfizer to help these pharma companies in reaching the target patients for clinical trials, consequently improving the clinical trial methods.

These alliances are expected to bolster Google’s footprint in specialties like cardiovascular disease, oncology, mental health, dermatology and diabetes.

Notably, Verily’s joint venture with Sanofi, Onduo, targets people with Type 2 diabetes. The collaboration integrates devices, software, medicine and professional care together to provide better treatment and medication.

Moreover, with Walgreens WBA Verily is working on several healthcare projects to make healthcare services affordable for the masses. Verily is working on a medication adherence pilot project which involves deployment of technically advanced devices to ensure the reach of proper medication to patients.

Notably, in early 2019, Verily raised $1 billion in a funding round led by a private equity firm Silver Lake along with Ontario Teachers’ Pension Plan and other global investors. The funding has strengthened Verily’s resources toward strategic investments in healthcare projects, partnerships and acquisitions.

We expect Alphabet’s expanding research and development activities, and collaboration with major healthcare companies to strengthen presence in the healthcare space. Alphabet currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Alphabet Inc. Revenue (TTM)

Alphabet Inc. revenue-ttm | Alphabet Inc. Quote

Amazon & Apple: Potent Challengers

Amazon has been eyeing the healthcare market for some time. The e-commerce giant’s buyout of PillPack, an online pharmacy firm, has expanded its footprint in the pharmaceutical industry.

Further, the e-commerce giant has also shown interest in the consumer health diagnostic market. Reportedly, it has plans to develop devices that will enable people to take vital medical tests at home, thereby improving the healthcare delivery time.

Further, this Zacks Rank #3 stock recently started offering the option of paying for medical purchases made on its online retail platform through health savings accounts (HSA) and flexible savings accounts (FSA) debit cards. This will aid Amazon in understanding consumer purchasing pattern, which in turn will help it to enhance services and improve medical supplies business.

Additionally, its service called Amazon Comprehend Medical aids in seamless extraction of medical information related to health condition, medication, dosage and treatment from unstructured data-like test reports, doctor’s notes and audio interviews. The service utilizes robust ML techniques and cloud services to extract data.

Amazon.com, Inc. Revenue (TTM)

Amazon.com, Inc. revenue-ttm | Amazon.com, Inc. Quote

Meanwhile, Apple is leaving no stone unturned toward making iOS capable enough for storing and sharing of massive medical data. The updated Health Record section of its Health application enables iPhone users to access their medical records, lab reports and other crucial information from care providers like hospitals and clinics whenever required.

Further, this Zacks Rank #3 stock is looking into a deal with the US Department of Veterans Affairs to simplify hospital visits and improve care and treatment process for the US veterans by providing them access to their health records on iPhones. This will accelerate healthcare delivery times for veterans.

Apple Inc. Revenue (TTM)

Apple Inc. revenue-ttm | Apple Inc. Quote

To Conclude

Healthcare’s lucrative growth prospects will continue to allure tech giants. However, initiatives from Alphabet, Amazon and Apple positions them well to capitalize on these prospects.

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