Telit & Vitality’s M2M Solution for Intelligent Pill Bottle Caps Can Reduce Health Care Costs, Improve Patient Adherence

| Mar 26, 2010 | Mobile Device Silicon | Analyst: Jeff Ogle

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Event Summary

March 25, 2010 -- Telit Wireless Solutions announced that its GE864-QUAD M2M module was selected by Vitality as the cellular connectivity solution to be placed in the company’s intelligent pill bottle caps, called GlowCaps. Vitality’s system is designed to provide individuals with feedback and stimulus to help improve prescription adherence. GlowCaps fit on standard prescription bottles and use light, sound, and even a phone call to remind people to take their medications. The GlowCaps send data to the Vitality system over the AT&T cellular network every time the pill bottle is opened.

Quick Take

Analytical Summary

• Current Perspective: Positive on the announcement that Vitality has selected Telit’s GE864 QUAD M2M module as the cellular connectivity module for the company’s intelligent pill bottle solution, because it is small, it fits on a standard pill bottle in an unobtrusive manner, and it will help people to maintain and improve prescription adherence. Additional benefits include the ability to provide daily adherence information to caregivers and doctors as well as the ability to refill prescriptions automatically.

• Vendor Importance: High to Telit, because this solution plays directly to its strengths as an international specialist in wireless machine-to-machine (M2M) technology, and it addresses a global problem within the pharmaceutical industry: prescription adherence. Telit offers communications modules for all the various wireless technologies deployed around the world, including GSM/GPRS, UMTS/HSDPA, CDMA, and short-range RF applications. This means the solution – if successful – can be marketed and deployed on a global basis.

• Market Impact: Low on the mobile device silicon market segment, because all RF silicon vendors can provide similar capabilities and support for such a M2M solution. However, the deployment of such a solution can potentially open the flood gates for similar applications in other industries. The medical market sometimes leads others in its adoption of technology, because unlike consumer markets, the price points for such solutions are higher and not as subject to the competitive price pressures of a consumer product. This could lead to an increase in market opportunities as other industries facing similar problems turn to companies such as Telit for a solution.

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