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Search king Google Inc. (GOOGL - Analyst Report) recently declared that it has signed a definitive agreement with pharmaceutical firm, Novartis (NVS - Analyst Report) to create smart contact lenses for diabetics to monitor their blood sugar levels and help farsighted people improve their eyesight. Financials of the agreement were not disclosed.

Per the agreement, Google X, Google’s research division, will provide Novartis’ Alcon eye-care division the smart contact lens technology to make and commercialize a series of ocular medical products.

The lenses will be enclosed with small electronics, non-invasive tiny sensors, and microchips, which will help diabetics track insulin-levels, measure tear fluid in the eye and enable vision correction in farsighted people.

The deal will help Google leverage Alcon’s dominance in the eye-care market and its expertise in contact lenses and intraocular lenses to boost its smart contact lens product line. This will enable the tech giant to extend its footprint in fast-growing wearable technology and software products used to track health and well-being.

Last month, Google launched its Google Fit platform to monitor health metrics, such as sleep and exercise, on products running its Android operating system, a move to take on Apple Inc.’s (AAPL - Analyst Report) similar platform called HealthKit.

With an increasing number of health issues, more and more people are opting to take control of their own medical treatment. Moreover, over the coming years, the adoption of this non-traditional approach is going to increase. Therefore, the move is likely to benefit Google in the healthcare applications arena going forward.

The product is currently in the works and the first prototypes are expected to be launched next year. The commercialization of the lens is expected to happen within the next five years.

Google shares currently hold a Zacks Rank #3 (Hold). A better-ranked stock is Akamai Technologies, Inc. (AKAM - Analyst Report), which holds a Zacks Rank #1 (Strong Buy) and is therefore worth considering.

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