Fitbit Is Investing in a Tech Start-Up: What It Means for Investors.

[Motley Fool ]

Back in 2015, the CDC estimated that more than a third of Americans had diabetes or prediabetes. That number is probably larger now, and the cost for treatment and care is in the tens of billions per year. Fitbit (NYSE:FIT) wants a piece of this market. The fitness tracker company is researching diabetes, and it reportedly has invested $6 million in Sano, a start-up specializing in minimally invasive glucose monitoring. This is a super-cool technology, and it’s one more example of how Fitbit is moving beyond just selling fitness trackers and expanding into the healthcare market.   

Sano and its tech

Sano is a company founded by Ashwin Pushpala in 2011 that is working on a wearable patch that can provide continuous glucose monitoring (CGM). This can help diabetics manage the disease by providing real-time feedback and alerts on glucose levels to help stay in a safe range. What makes Sano’s device different from other devices is that it doesn’t actually penetrate the skin. 

Fitbit’s investment is less than 1% of its available cash, so this long-shot bet isn’t a large one for the company. While I don’t see this making a difference for Fitbit in the short term, I like that the company is pushing the envelope in healthcare. With Sano’s technology having the potential to monitor more than just glucose, this might be the beginning of something bigger.