If Apple was looking to plunge deeper into the digital health market, it might make sense for the California tech giant to buy Watertown-based athenahealth — at least according to one analyst.
CNBC previously reported that Apple (Nasdaq: AAPL) is working on ways to turn the iPhone into a way for patients to centrally manage their health data, with connection to a cloud-hosting platform. The idea rings familiar, as it’s the same strategy the company deployed with music.
Citigroup analyst Garen Sarafian speculated this week that given that context, it would make a lot of sense for Apple to acquire athenahealth (Nasdaq: ATHN).
“While the industry continues to make progress, a major issue in healthcare is adequate interoperability to ensure the seamless exchange of medical data,” Sarafian wrote in a report. “Apple offers 1+ billion iPhone users, but currently has limited access to clinical systems that capture data in hospitals & physician offices.”
Meanwhile, athenahealth has instant access to approximately 10 percent of the market, 83 million patient records, and roughly half of all U.S. doctors through its health app Epocrates.
“We view Athena as a ‘disruptor’, where Apple’s support would likely accelerate its own current efforts,” Sarafian wrote. “CEO & co-founder Jonathan Bush is passionate about making a difference in healthcare including bringing (its technology) into the 21st century, where we think Apple would be one of few homes for the firm he’d consider.”
Apple, with its expertise in artificial intelligence, would also be able to help athenahealth better analyze patient data to identify those most at risk and how to intervene before someone gets sick, Sarafian said.
Despite the speculation, athenahealth isn’t commenting about a possible sale to Apple, even in the midst of ongoing conversations with activist investor Elliott Management about where to take the company long-term.
“This is a rumor,” said Holly Spring, a spokeswoman for athenahealth in a statement. “Our focus remains on building a national information and innovation network, one that drives clinical and financial results to healthcare organizations of all sizes.”
An Apple spokesperson did not immediately respond to a request for comment.
Even so, shares of athenahealth perked up over 3 percent on Friday, with the stock price hitting a one-year high of $146.07 a share by 2 p.m.
By: Jessica Bartlett (Boston Business Journal).
Photo: Atlanta INtown Paper.
Review: Emerging Market Formulations & Research Unit, Flagship Records.