Jawbone, the liquidated consumer technology turned fitness wearables company, is now rebranding itself as Jawbone Health Club and planning to enter the medical device market. While the new business plan and product line are yet to be released, according to the company’s investor presentation products under consideration include; sensors that track body metrics (hydration, respiration, blood pressure, alcohol level), a bracelet that can detect a heart attack or failure and applications to assist with diabetes, hypertension, heart rhythms and stress management. The company plans on pursuing a partnership with Microsoft (MSFT), where the tech giant would distribute the Jawbone Health Club’s devices and wellness software, and data collected would sync with MSFT email & calendar products.
Howie Long-Short: Medical grade devices are certainly the next generation of wearables, so from a conceptual POV, I like the pivot. However, to get insurance reimbursement, they will need FDA approval on products. R&D is expensive and they blew through $590 million the first time around. Are they going to be able to raise enough money to flush this business out?
Fan Marino: I always thought the idea of a “fitness tracker” to count steps was nonsense. Just a matter of time until we toss it in the same bucket with our shake weights, thigh masters and ab vibration belts.