Alphabet (GOOGL - Free Report) is firing on all cylinders in to augment presence in the healthcare sector on the back of its well-performing healthcare unit, Verily.
This is evident from the latest Series A funding worth $58.5 million led by Google Venture to form a startup, Verve Therapeutics. The startup is focused on a project that aims at reducing the risk of coronary artery diseases by developing therapies to edit genes.
Notably, Verily will also work together with Verve. We believe the latest move of Alphabet is likely to benefit all as it aims to prevent heart attacks which are the most fatal disease in the United States.
Additionally, the new project aims to replace daily pills for heat diseases with one-time injectable treatment.
Deepening Cardio Focus
This is likely to strengthen the company’s research and development activities in the field of cardiovascular diseases.
Verve is leveraging the power of Verily’s nanoparticles to ensure the flow of drug compounds to liver via blood. Further, it is utilizing a technique, CRISPR, to develop therapies to edit a person’s gene.
Apart from the recent partnership, Alphabet recently received FDA clearance for electrocardiogram technology (ECG) in its Study Watch which was launched in early 2017.
The ECG feature of the watch will help in recording, storing and displaying single-channel ECG rythms, consequently enabling individuals with or without serious heart condition to manage healthcare efficiently.
Further, cardiovascular attacks are occurring at an alarming rate in today’s world. Most of the deaths primarily occur due to unconsciousness and mismanagement of the disease among people.
Consequently, regular heart monitoring has become inevitable for avoiding sudden death.
The heavy dependence of healthcare sector on technology is creating opportunities for tech companies to foray into this particular space with their robust skills and techniques.
Apart from Alphabet, the healthcare sector has been able to attract tech companies like Amazon (AMZN - Free Report) , Apple, Fitbit (FIT - Free Report) , to name a few.
Notably, Amazon’s aggressive strategies pose major threatto Alphabet’s growing initiatives in the sector.
However, Alphabet’s growing strategic partnerships are acting as tailwinds. The company has partnered with Walgreens Boots Alliance (WBA - Free Report) to work on several healthcare projects together with an aim to make healthcare services affordable for masses.
Further, the company is working on a project to develop a surgical robot in collaboration with Johnson & Johnson. Additionally, Verily is planning to form a JV with ResMed to invent proper treatment and methods to fight sleep apnea.
All these strong endeavors of Alphabet will help it in rapidly penetratingthe multi-trillion healthcare industry.
Currently, Alphabet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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