The long and short of it
Apple, Microsoft, Intel -- virtually all the tech titans, in fact -- are now pursuing major initiatives in healthcare. A confluence of factors, such as digitization of records, machine intelligence, genetic engineering, and rapid advances in medical equipment, have made the field ripe for disruption from data-enabled, mobile-based, and miniaturized devices.
Even more enticing are the opportunities to massively grow revenue. The tech giants are billion-dollar companies, but healthcare spending is approaching $3 trillion annually in the U.S. alone. Looking globally, the World Health Organization estimates the annual expenditure at $6.5 trillion.
Bottom line: Despite the big carrot enticing it, Google has yet to come up with anything that can lay claim to changing healthcare. Although Alphabet could be a potentially interesting addition to your healthcare portfolio, it should be added with the understanding that there are many other pure-play companies with a much clearer path and investing thesis than Verily.
Sanofi, AbbVie, and Biogen have also teamed up with Verily over the past few years. Big pharma hopes to tap into Google's data analysis tools, as well as license Verily's miniaturized medical devices (after they are developed), to tackle various disease targets. In a slightly different kind of venture, Johnson & Johnson has inked a deal with Verily to develop medical robots.
Verily through its parent Alphabet seems to be the banker for many spinoffs. Must be a good write-off for the Google. How about putting some of that money into direct care payment.
Now that is a foreign thought...to pay for patient care.All those trillions of dollars going toward paying for care. What a novel idea !
The path is well worn. Google should use it's resources where it will do more good.
How Google Plans to Reinvent Healthcare -- The Motley Fool