Three Ways Pharma Leaders Can Unlock the Hidden Power of Data

Pharmaceutical companies are awash in data — from electronic health records (EHRs) to insurance claims to molecular biomarkers. And yet, some of the most valuable insights remain untapped: the device-generated data quietly accumulating in insulin pens, smart inhalers, cardiac monitors and wearables.

This kind of real-world data (RWD) — produced outside the clinical trial setting — is playing a critical role in drug discovery, trial optimization and post-market surveillance. Consider the bold investments being made in structured, data-rich platforms:

• Truveta, with support from Regeneron, Illumina and 17 health systems, is building a genomic database of 10 million Americans by linking anonymized health records with sequencing data.

• Owkin is using federated learning to identify novel biomarkers in oncology — without ever moving sensitive patient data.

• Recursion Pharmaceuticals, with AI-based drug discovery platforms, has inked multi-program deals with Roche, Genentech and Bayer.

These examples show how high-quality, interoperable data can radically accelerate drug development. But despite this recognition, the RWD generated by medical devices remains underleveraged, oftentimes blocked by internal barriers.

Many pharmaceutical organizations still operate in functional silos, with R&D, medical affairs, commercial and digital teams using different systems and frameworks. Data generated by a digital health initiative may never make it to the scientists who could use it to identify drug targets or design better trials.

Data can remain unused even when teams do have access to it. Handling patient-generated data — particularly outside of clinical settings — raises valid concerns about consent, interoperability and HIPAA/GDPR compliance. The data generated from devices is also often treated as a “digital health” initiative rather than a strategic R&D asset. Without strong internal champions and cross-functional alignment, opportunities are missed.

The solution: Challenge-driven innovation 

If siloed systems and internal constraints are slowing pharma innovation, open innovation offers a clear path forward. Structured, challenge-based models — where startups, researchers and industry partners collaborate on solving defined problems — can lead to massive transformation.

Many medical companies, especially those in pharma, often don’t know what they don’t know. Outside innovators, including startups and digital health developers, can bring radically new ideas to the table — especially when the challenge is clearly framed and incentives are aligned. This kind of structured exploration lets pharma companies test innovation in a low-risk, high-leverage way — building real-world validation before deep investment.

We’ve seen this in our own work at MATTER. A global biopharmaceutical leader partnered with us to explore how device-generated data could drive new patient-centric solutions in diabetes care. The partner organization posed a focused but open-ended question: How might we use data from connected insulin pens to improve outcomes for people with diabetes?

MATTER designed and ran a global startup sourcing process, evaluating dozens of applicants and selecting 12 semi-finalists to refine their solutions during a three-day innovation bootcamp at MATTER. After the bootcamp, the teams pitched to a panel of judges from the partner organization, and five startups were awarded $25,000 to co-develop their solutions and participate in a semi-virtual accelerator program. 

Over several months, startups received structured mentorship and product feedback, attended workshops and engaged in iterative development of co-piloted solutions. One of the program winners was acquired as a result of their involvement in the program.

MATTER’s role as the strategic intermediary powered collaboration between startups and internal teams and resulted in a repeatable innovation process for the partner organization. Teams across the pharmaceutical company gained exposure to new technologies, design thinking and data innovation strategies, as well as shifted toward a more agile, open and exploratory R&D mindset.

Turning data into innovation 

Pharma companies already sit on some of the most valuable health data in the world. But much of it — especially the behavioral, real-time data generated by devices — is still untapped. Leaders can start tapping into the power of data by following these three steps: 

1. Build internal champions and cross-functional teams.
   Innovation fails when it’s siloed. Establish a working group across different departments, like R&D, digital / data science, commercial, medical affairs and legal / privacy. This cross-functional team can steward both strategy and execution, ensuring that insights from device data make their way into real programs.
   
   

2. Define metrics for success.
   You can't improve what you don't measure. Build KPIs that go beyond "number of pilots" and measure actual impact. Using metrics — like reduction in patient dropout rates or improved time-to-insight during trials — can justify continued investment and build momentum.
   
   

3. Launch a targeted innovation challenge.
   You don’t need to solve everything at once. A good challenge aligns with strategic priorities (e.g., reducing hospitalizations, improving adherence) and uses device data or RWD as a foundation. It’s structured for collaboration, not just pitch events. Define a single, meaningful problem and engage the ecosystem to help solve it.

Forward-thinking organizations are beginning to turn underused data into high-impact innovation. They’re pairing device data with structured challenge programs, engaging external partners to uncover new insights and shifting from pilot fatigue to scalable, patient-centered solutions. The message is clear: Your next major innovation might not come from a lab — it might come from your data.