The health tech industry is driven by innovation and is constantly in a state of change. Yet it’s clear that post-pandemic investors and consumers are a lot less comfortable with decision-making that is purely made by technology gurus without senior medical expertise in the room.
From the outside looking in, it might seem obvious to have a medical officer on your leadership team, but research shows this is often not the case. According to CB Insights’ most recent ‘Digital Health 150’, it was found that just 55 out of 150 top health tech firms, or 37%, had a Chief Medical Officer (CMO) on their leadership team. Since 2020, CMOs at health tech start-ups have increased, indicating that leadership is recognizing the positive impact a CMO can have – but there is a way to go to suggest that this has become the new standard for the industry as a whole.
For the 63% without a CMO, particularly in these uncertain times when health tech companies must demonstrate clinical rigor, operational efficiency, and impactful results, as well as build and maintain credibility, we may need to ask why there isn’t more urgency in a move to appoint one. When the need to differentiate for investors and other stakeholders in this sector is key, we believe that having someone on staff who can deliver the scientific and ethical value of the products and services is non-negotiable.
Who do you want in your corner?
Since the Covid-19 pandemic, CMOs have played a more visible and active role throughout a wide range of industries. They use their combination of experience in clinical, procedural and operational expertise to support the C-Suite directly and drive growth in industry verticals such as national population health initiatives, insurance and life sciences partnerships.
At a glance, the CMO serves as a scientific leader for partnerships with pharma companies which stimulate health tech companies’ strategies and operations. For instance, global health tech companies Huma and AstraZeneca formed a partnership to improve clinical outcomes through digital health solutions to bridge the gap between patients and clinicians.
Although clinical studies can be costly, their positive impact is significant by generating meaningful impact in healthcare innovation as well as creating necessary checks, balances and external review of clinically-backed efforts. The CMO, in this way, leads clinical strategy, ensuring it meets regulatory and market access requirements, and designing studies to prove its products are safe. They are also the perfect spokespeople to communicate these results with medical advisors, society and opinion leaders.
Diversity of Experience
Our CB Insights review of current CMOs indicates that 43% were recruited from another health tech firm, 42% came from a hospital or healthcare system, 9% from an academic background and 6% are from the pharmaceutical sector.
Individuals who have already experienced working in alternative environments and have left their purely clinical comfort zone are certainly a bonus. Whether leading a P&L, running a business case, or jumping from clinical to commercial challenges – a key attribute to success in the ever-changing world of health tech is the ability and courage to diversify your experience, particularly where it can be backed up by impact.
One size doesn’t fit all
As with any specialist leadership role, it must be acknowledged that every health tech company requires a different profile based on the firm’s business model and sector.
‘Health Tech’ is a notoriously broad term today and includes a range of companies that may oversee topics related to data aggregation and analytics, patient engagement or monitoring, diagnostics, real-world evidence, decentralized trials technology, or AI drug discovery.
The CMO will need to meet the requirements and demands of your organization. For example, if they are required to regularly interact with venture capital and private equity firms to communicate a company’s medical vision on product development and patient orientation matters, someone from a purely academic background might not be the best fit. If clinical trials are your priority, on the other hand, someone who has had more of a commercial operations background might not be the right fit there.
The right CMO for your organization will take responsibility and accountability to deliver an enhanced patient-centric approach that complements and benefits a health tech founder’s or firm’s business credentials. By focusing on what you need from your CMO, as opposed to who you need, you can find the right candidate to elevate a health tech firm’s credibility, viability and impact in a highly competitive space.
About Théo Rotellini
Théo Rotellini is a principal in Heidrick & Struggles’ Paris office and a member of the global Healthcare & Life Sciences Practice. He focuses on recruiting executives and non-executives for life sciences and healthcare technology clients at the international level, covering the entire product value chain. He also has functional expertise in digital and data management for healthcare clients.