Alphabet Inc: Breakthrough Device Could Be Big for Google Stock

Alphabet IncGoogle’s New Technology is in the Field of Health and Medicine

Alphabet Inc (NASDAQ:GOOG) and Sanofi SA (EPA:SAN) have joined forces. If this seems like an unusual matchup, it is. Alphabet, also known as Google, does not make pharmaceuticals, and Sanofi’s conception of “the cloud” is of the literal atmospheric variety. But it seems that Google stock will actually benefit from the company’s plan to help diabetes patients.

Indeed, Google and Sanofi have combined forces to make life easier for people suffering from diabetes. It so happens that Alphabet Inc, aka Google, owns Verily Life Sciences LLC. Verily and Sanofi have formed a joint venture called Onduo. It so happens that diabetes has witnessed a virtual epidemic in the past few years. Google stock, as valuable as it has become, can gain even more from this association.

Indeed, diabetes treatments and related research are among the most profitable segments of the pharmaceutical industry. (Source: “Alphabet and pharma company Sanofi are teaming up to work on new diabetes treatments,” The Verge, September 12, 2016.) The Google/Sanofi matchup is quite literally a case of an algorithm bent to serve diabetes patients. The International Diabetes Federation expects there to be 592 million diabetes sufferers worldwide by 2035. (Source: Ibid.)

Google and Big Data Are One Key for Medical Advancement

Diabetes is a complex disease that requires patients to constantly monitor themselves. They do this by regularly measuring blood sugar levels. As you can imagine, not all patients can manage this all of the time. Here’s where Google’s algorithmic experience comes into play. Indeed, Sanofi’s plan is brilliant because of its simplicity. Rather than altering the chemical composition of its treatments (which would require more regulatory tests and procedures), with Google’s help, Sanofi has chosen to ensure that patients take their doses at the right time.

The new treatment focuses on monitoring patients in real time to adjust the relevant dose of anti-diabetes treatment as indicated by various sensors. The sensors are what Sanofi and Google will design through Onduo. Sanofi will supply its expertise in drug development, while Google will focus on the technology to analyze patients’ data.

Diabetes might be the way that Google starts to tap into the profitable world of pharmaceuticals. It may not have a major effect on Google stock, but this is temporary. Google already has a presence in the health sector. And for good reason; last December, it created Verily Life Sciences LLC, which is a subsidiary to bring together all of its medical sector projects.

This the medicine of the future: connected medicine. The medicine of the future will not only involve chemical formulas and new ingredients; it will depend on the ability to process billions of data bits. This is why this is so important to GOOG stock.