Product liability implications in the digital health industry

Healthcare Alert

Product Liability Alert


Pharmaceutical and medical devices are becoming "smarter" these days, and the former bright line between digital health and life sciences sectors continues to blur.

In this highly competitive industry, life science companies are rethinking product development and incorporating smartphone apps and other wireless and/or wearable components to produce novel therapeutics. While the definition of digital therapeutics remains fluid, this concept has attracted considerable attention from investors – it has been estimated that more than $8.1 billion was invested in the digital health industry in 2016 alone.

However, as digital health products become commercialized and their use in the practice of medicine becomes more mainstream, there will be a greater likelihood of patient injuries, which may expose companies to product liability litigation and heightened regulatory scrutiny.

In this alert, we review key product liability considerations for companies and investors in the healthcare and life sciences sectors that are contemplating entry into the digital health frontier.

This alert was originally published by StartUp Health in November 2017.