Disruption at the Expense of Scientific Rigor

Unbundling refers to breaking a business down into its parts. VC David Pakman has called it “the great disruptor.” And in this time of upheaval around healthcare during the COVID-19 pandemic, one prime target for unbundling is lab testing.

CB Insights says the pandemic has “provided an opportunity for direct-to-consumer (D2C) startups offering mail-in lab testing and at-home tests to challenge incumbents on a more level playing field.”

The demand for remote lab work goes beyond COVID-19 testing as people avoid leaving their homes. CB Insights also lists startups working on issues including women’s health, drug testing, and genetic screening. These startups have the potential to make care more affordable and accessible for a lot of people.

That said, disrupting health care is not to be taken lightly. Any mistakes resulting from attempts to “move fast and break things” while changing how care is delivered can destroy human lives. Ever heard of Theranos?

“The common, more insidious problem with health care unicorns is not one-off scandal ripe for cinema. It is the absence of credible scientific evidence. Health care products based solely on data generated internally may be problematic and untrustworthy,” researchers from Stanford wrote in an 2019 op-ed for STAT  News.

More than a year since STAT published the piece, the concern about health care startups rings true for some new testing providers in the COVID era.

What do you think founders and investors can do to ensure the integrity of a new business in a scientific field?