Digital Therapeutics Report: Latest DTx market trends and companies in growing digital health sector

Summary List Placement

As pandemic anxiety and depression continue to harm people’s mental health, digital therapeutics (DTx) is more important  than ever before. This, combined with the $18.5 billion Teladoc-Livongo merger, has heated up competition in the virtual care space and catapulted the global DTx market to reach $56 billion over the next five years.

Digital Therapeutics Providers

What is Digital Therapeutics?

DTx delivers evidence-based therapies via software, like mobile health apps, that replace or complement the existing treatment of a disease. They diverge from the broader digital health market in that they must be approved by regulatory bodies—and displaying proof-of-concept is at the core of their model. 

Digital Therapeutics Market

DTx vendors leverage their tech to treat chronic conditions, which gobble up the lion’s share of the US’ healthcare spending. The surging prevalence of chronic conditions combined with long term effects of the pandemic is fueling growth in the global DTx market.

Digital health funding

Last year, Insider Intelligence expected the DTx space to hit nearly $9 billion by 2025, but its new forecasts expect DTx to be a $56 billion global opportunity by 2025.

Over the next five years, there will likely be an uptick in merger and acquisition (M&A) activity and closures among DTx companies. Pharmaceutical companies will likely also become active acquirers of DTx providers, and large M&As are a key sign of market maturity and future growth. 

Those that choose not to get on the DTx bandwagon might miss out on a massive opportunity—and drug companies and medical device makers that don’t jump at the chance of linking up with DTx providers  risk losing market share to emerging competitors. 

Digital Therapeutic Regulations

There has been an increase in regulatory acceptance and venture capital (VC) funding for the DTx market, as investors place their bets on consumers’ heightened interest in DTx platforms.

The FDA has been paving the way for swift DTx development—empowering DTx vendors to launch their platforms quicker than ever before. In April, the FDA loosened regulations surrounding approval of digital mental health tools to hasten their time to market.

Digital Therapeutics Trends

The Teladoc-Livongo megamerger put a spotlight on the power of digital therapies and the virtual care market. As a result, other telehealth players are eyeing DTx platforms to enhance the value of their services.

Openness to DTx by Health Plans

Pharma companies have been strategically pouring cash into DTx firms to capture a slice of the growing DTx market. And with the FDA greenlighting multiple DTx treatments, pharma companies can invest in DTx solutions with more confidence that they’ll see a return on investment (ROI).

Telehealth vendors have been charting unprecedented growth amid the pandemic, and are now more financially stable and able to expand their portfolios. As the DTx market swells alongside the digital health boom, more cash-rich telehealth vendors may purchase DTx startups, or develop their own DTx solutions in-house

Top Digital Therapeutics Companies

In the Digital Therapeutics Report, Insider Intelligence details the top DTx providers making waves in the digital health space, diving into what each company offers, recent funding, investors, FDA clearance, and significant partnerships. The companies mentioned in the report include: 

  • Pear Therapeutics  reSET-O digital therapeutics appOmada
  • Virta Health
  • Biofourmis
  • Akili Interactive
  • Pear Therapeutics
  • One Drop
  • Lark Health
  • Propeller health
  • Cognoa
  • Kaia Health
  • Happify Health

Future of DTx and Digital Health

The emergence of digital medicine threatens to reshape the entire healthcare value chain—and because drugs interact with nearly every healthcare stakeholder, DTx solutions are leading a variety of players to carve out room for digital solutions.

The US mental health crisis is only getting worse amid the pandemic, so DTx players that want to remain most attractive to their payer and employer partners should branch out into behavioral healthcare. 

And while we expect to see heightened activity in the space over the next several years, a few hurdles to growth remain:

  • Government-based insurers like Medicare have been slower to cover DTx, likely due to outdated regulatory framework.
  • DTx vendors need to ensure their platforms are integrated within the electronic health record (EHR) or software that physicians’ already work in.

 

Want to learn more?

In the Digital Therapeutics Report, Insider Intelligence unpacks the state of the digital therapeutics (DTx) market. The report explores how the Teladoc-Livongo megamerger and the pandemic have catapulted the global DTx market into the spotlight. It outlines the top DTx startups that are ripe for tie-ups, and provides examples of how payers, pharma, and telehealth vendors should benefit from partnering with or acquiring a DTx firm. 

Interested in getting the full report? Here’s how you can gain access:

  1. Join other Insider Intelligence clients who receive this report, along with thousands of other Digital Health forecasts, briefings, charts, and research reports to their inboxes. >> Become a Client
  2. Purchase the individual report from our store. >> Buy The Report Here

Are you a current Insider Intelligence client? Log in and read the report here.

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THE DIGITAL HEALTH ECOSYSTEM: The most important players, tech, and trends propelling the digital transformation of the $3.7 trillion healthcare industry (AAPL, IBM, ANTM, GOOGL, MSFT, AMZN, PFE, GE, MCK, TMUS, WMT, WBA, MRK, CVS)

This is a preview of a research report from Business Insider Intelligence,  Business Insider’s premium research service. Current subscribers can read the report here.
Until now, healthcare was the only remaining industry that had yet to feel the rapid impact of digitization endured by retail, banking, and media. But consumer adoption of digital tech, regulatory overhauls, and a shifting reimbursement model are forcing healthcare players’ hands. Summary List Placement
Digital health innovation offers market incumbents new opportunities to combat constricting margins, labor shortages, and rising costs.
But it also poses a threat to slow movers, as new entrants lean on their digital prowess and lack of legacy infrastructure to cut costs and remain nimble. As such, incumbents are turning to acquisitions, partnerships, and new investments to strengthen their digital health services.
The first Digital Health Ecosystem Report from Business Insider Intelligence explores the current healthcare ecosystem, industry trends that are driving digital transformation, and where the industry is headed.
We outline the role of each of the industry’s major players — including payers, providers, and manufacturers — and how they’re affected by healthcare’s digital disruption. 
 
Here are some of the key takeaways from the report:

Digital health is at the forefront of transformation in the healthcare industry — both as a driver of and an answer to the challenges industry players are grappling with.
All of the industry’s major players — including payers, providers, and manufacturers — are affected by healthcare’s digital disruption.
A confluence of forces induced healthcare’s embrace of digital health, including changing consumer expectations, a new and disruptive reimbursement model, and rising healthcare costs
Tech-focused entrants are also breaking into healthcare, acting as catalysts for change and threatening legacy players’ bottom lines.
Key digital health solutions like EHRs, digital therapeutics, telehealth, AI, wearables, and blockchain are the foundation of the industry’s digital awakening.
Early evidence that digital health can address many of the industry’s myriad challenges has fueled a vibrant US digital health funding market in 2018, with overall funding hitting $6.8 billion at the end of Q3. 

 In full, the report:

Details the US healthcare landscape by the role that payers, providers, manufacturers, and distributors play in the healthcare ecosystem.
Gives an overview of how digital health is enabling incumbents to overcome industry challenges.
Outlines how tech-focused healthcare entrants are pressuring incumbents and accelerating healthcare’s digital transformation
Identifies promising digital health funding areas to illustrate what the future of digital health will look like.

Interested in getting the full report? Here are two ways to access it:

Purchase & download the full report from our research store. > >Purchase & Download Now
Subscribe to a Premium pass to Business Insider Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you’ll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. > > Learn More Now

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the fast-moving world of the Digital Health.
The companies mentioned in this report are: Aetna, Alphabet, Amazon, American Well, AmerisourceBergen, Anthem, Apple, Arizona Care Network, Arterys, Babylon Health, Beth Israel Deaconess Medical Center, Bay Labs, Blue Cross and Blue Shield Association, Blue Mesa Health, Bright Health, Cardinal Health, Cedars-Sinai, Cleveland Clinic, Clover Health, CVS, DePuy Synthes, Devoted Health, Dexcom, Doctor on Demand, Express Scripts, Fitbit, Fresenius Medical Care, GE Healthcare, Geisinger, Glooko, GSK, healthfinch, IBM, IDx, Johnson & Johnson, Mass General, McKesson, Medtronic, Merck & Co., Merck KGaA, Microsoft, NewYork-Presbyterian, Northwell Health, Novartis, Olive, Omada Health, Optum Rx, Oscar Health, Pear Therapeutics, Pfizer, Philips, PillPack, ResMed, Rite Aid, Roche, Samsung, Sanofi, Senseonics, Suki, Tallahassee Memorial Hospital, T-Mobile, UnitedHealth Group, Verily, Viant, Walgreens, Walmart, Wellpepper, Zocdoc
 
 SEE ALSO: Patients are transforming from passive recipients of healthcare services to active participants in their own health
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THE INTERNET OF MEDICAL THINGS: The coronavirus is catalyzing a need for healthcare IoT in the US — here's how connectivity and technology providers are carving out their place in the market

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This is a preview of the Business Insider Intelligence Internet of Medical Things premium research report. Purchase this report here.
Business Insider Intelligence offers even more technology coverage with our Connectivity & Tech Briefing. Subscribe today to receive industry-changing connectivity news and analysis to your inbox.

Healthcare providers have been turning to the Internet of Medical Things (IoMT) to facilitate their digital transformation since before the coronavirus hit the US — but the pandemic has caused a sea change in providers’ willingness to implement IoT solutions that augment efforts in preparing for, containing, and diagnosing the virus. 

As the backbone that powers the IoMT, connectivity and technology providers have a mounting opportunity to capture a larger slice of the market as it evolves alongside the coronavirus pandemic. Prior to the pandemic, healthcare providers were forecast to adopt IoT devices at one of the fastest rates of any industry segment, with the installed base of IoT endpoints expected to grow 29% year-over-year in 2020.
And pre-pandemic, healthcare was among the top three industries expected to see the fastest growth rates (15.4%) in IoT investment in terms of spending over the 2017-2022 forecast period. But the coronavirus is fundamentally changing how healthcare can be accessed and delivered in the US, and we expect to see even faster growth throughout 2020 — and that this upward momentum will outlast the pandemic.
In The Internet of Medical Things, Business Insider Intelligence assesses the North American IoMT market and explores how the IoMT opportunity for connectivity providers is evolving alongside the coronavirus pandemic, and how these players are carving out their place in the growing segment. We first unpack the opportunities for connectivity and technology providers in the IoMT market and outline how the coronavirus pandemic will impact demand for various IoT solutions in healthcare. We then detail how emerging techonlogies are propelling the healthcare IoT space forward. Finally, we explore how connectivity and technology players can expand within the IoMT ecosystem.
The companies mentioned in this report include: AT&T, Augmedics, AVIA, Choice IoT, DarioHealth, Eko, GE Healthcare, Intel, Medtronic, Packet, Phillips, PlushCare, PTC, Smardii, Sprint, Telit, Vuzix, XENEX, Zebra. 
Here are some of the key takeaways from the report: 

Healthcare providers are prioritizing IoT investment in solutions that enhance virtual care delivery, augment emergency services and triage, and automate or streamline tasks. 
The IoMT opportunities for connectivity and technology providers will only be amplified as the IoT intersects with other emerging technologies. 
We interviewed executive decision-makers in the connectivity and technology space to gather their insights on how they determine which IoMT opportunities to prioritize, the best go-to-market strategy for these new opportunities, and what goes into the decision process when selecting a partner to expand within the IoMT. 
The report also highlights the opinions of executive decision-makers in the connectivity and technology space on topics that include: telemedicine, preventative care, administrative operations, 5G, edge computing, artificial intelligence, and augmented reality. 

In full, the report: 

Sizes the North American IoMT market through 2022 and explains how it compares with pre-coronavirus estimates. 
Identifies the three biggest IoMT opportunities for connectivity and technology providers based on conversations with companies entrenched in the IoMT ecosystem, and on our analysis of their impact, scalability, early evidence of value creation, and increased utility amid the coronavirus pandemic.
Provides recommendations for connectivity and technology providers on how to carve out and expand their footprint in ways that unlock the most value. 

Interested in getting the full report? Here’s how to get access:

Business Insider Intelligence analyzes the tech industry and provides in-depth analyst reports, proprietary forecasts, customizable charts, and more. > > Check if your company has BII Enterprise membership access to the full report
Sign up for the  Connectivity & Tech Briefing, Business Insider Intelligence’s expert email newsletter keeping you up-to-date on the people, technologies, trends, and companies shaping the future of healthcare, delivered to your inbox 6x a week. > > Get Started
Purchase & download the full report from our research store. > > Purchase & Download Now
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Big pharma is using AI and machine learning in drug discovery and development to save lives

Summary List PlacementThe pharmaceutical industry has been slow-moving when it comes to adopting digital health technology, and pharma companies overall have taken a long time to implement AI and machine learning strategies — making broad-scale digital transformation difficult.

There is ample opportunity for drug discovery and development, but it relies on the ability of companies to implement advanced health tech into everyday strategies. 
While the healthcare industry is rapidly adopting digital tech, the pharma industry is lagging on digital maturity, and any measures even early movers are taking to catch up are patchworked due to a lack of strategy and digital-focused leadership.
AI & Machine Learning in the Drug Development Process
An incredible amount of time and money goes into drug development — bringing a drug to market costs about $2.8 billion dollars over 12+ years, according to Taconic Biosciences’ tally.  
Utilizing AI and machine learning can help at every stage of the drug discovery process. Healthcare AI startups were able to raise over  $2 billion in Q3 2020, and those using AI to streamline the drug making process were the recipients of some of the heftiest sums compared with startups deploying the tech in other healthcare segments.
AI in Drug Discovery (Phase I)
The drug discovery process ranges from reading and analyzing already existing literature, to testing the ways potential drugs interact with targets. According to Insider Intelligence’ AI in Drug Discovery and Development report, AI could curb drug discovery costs for companies by as much as 70%.
AI in Preclinical Development (Phase 2)
The preclinical development phase of drug discovery involves testing potential drug targets on animal models. Utilizing AI during this phase could help trials run smoothly and enable researchers to more quickly and successfully predict how a drug might interact with the animal model.
AI in Clinical Trials (Phase 3)
After making it through the preclinical development phase, and receiving approval from the FDA, researchers begin testing the drug with human participants. Overall, this is a four-phase process and usually considered the longest and most expensive stage in the drug making journey. 
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Pharma Investments in AI
Big tech investments in pharma are at an all time high. Specifically, big tech firms with a broad range of AI and cloud solutions make valuable partners to drugmakers, which have varied needs when it comes to AI.

For example, Moderna leverages Amazon’s AWS cloud platform to speed up its drug development process. And while Moderna has recently made headlines as a top contestant in the race to develop a coronavirus vaccine, the company should also be recognized for its success in developing a cancer vaccine in just 40 days while leaning on AWS. 
Moderna is just one example of the many pharma companies taking advantage of Big Tech’s growing interest in the digital health industry. And Insider Intelligence expects Big Tech to continue using their AI brawn to forge pharma tie-ups.
Here are the companies analyzed in the report:

AbbVie
Amazon
Apple
AstraZeneca
Atomwise
Biofourmis
Eli Lilly
Exscientia
Google
Insilico
Litmus Health
Microsoft
Moderna
Novartis
Otsuka
Pfizer
Recursion Pharmaceuticals
Repurpose.AI
Roche
Sanofi
TriNetX
Verily
Verisim
XtalPi

Interested in getting the full report? Here’s how you can gain access:

Join other Insider Intelligence clients who receive this report, along with thousands of other Digital Health forecasts, briefings, charts, and research reports to their inboxes. > > Become a Client
Purchase the individual report from our store. > > Buy The Report Here
Join the conversation about this story »

HEALTH TECH'S ROLE IN THE NEW OFFICE NORMAL: How digital health firms are helping US employers facilitate return-to-work programs amid the coronavirus pandemic

Summary List PlacementThe coronavirus pandemic has thrown the US economy into a state of flux, forcing businesses into uncharted territory as they decide when and how to reopen. Before the pandemic, 39% of US office employees worked remotely—which nearly doubled to 77% during the pandemic, per a June PwC survey.  Now, company leaders across the US are strategizing how to resume operations and restore normalcy by bringing their employees back into the office. In order to reopen brick-and-mortar offices, warehouses, and stores, it’ll be of paramount importance for employers to navigate how to do so safely and instate routines that curb the spread of the coronavirus. Otherwise, employers risk creating sites of new outbreaks and being forced to shut their doors yet again.

The pandemic could hike up employer medical spending—creating an even greater sense of urgency for products that help ensure workers are in good health. The pandemic could increase self-insured employers’ medical spending by as much as 10% in 2021, per PwC’s estimates. For context, this estimate was calculated under the assumption the wave of coronavirus cases erupting in the spring of 2020 would lead patients to defer care to 2021. So, investing in programs that will maintain the health and safety of workplaces will be top-of-mind for businesses looking to preemptively rein in medical spending now, considering it could tick up over the course of the year. 
Tech companies and digital health startups are rolling out software to facilitate the return-to-work transition for employees. Return-to-work methods have made headlines, like Amazon’s use of temperature checkpoints in its warehouses. But another segment of software developers—digital health firms—are designing platforms that focus on monitoring employees’ symptoms and coronavirus status, and passing that information onto their employers.
In this report, Insider Intelligence outlines how tech giants and digital health companies are using their tech and clinical expertise to help US businesses with their reopening plans. We explore what the return-to-work health tech space looks like now—providing examples of the solutions on the market from both tech companies and fast-moving digital health companies, and unpacking the pros and cons of each. Finally, we shed light on some of the legal and privacy-related challenges that could hamper employers’ implementation of tech-enabled return-to-work programs.  
The companies mentioned in this report are: Alphabet, Amazon, Apple, Castlight Health, Collective Health, Color, Dole, emocha, Facebook, Fitbit, Google, Microsoft, One Medical, RxMx, Salesforce, Sonde Health, UnitedHealth Group, UrbanSitters, and Verily. 
Here are some key takeaways from this report: 

Employers are strategizing how to reinstate normalcy in their operations amid the coronavirus pandemic—and tech developers are rolling out retirn-to-work programs that prioritize ensuring the health of employees. 
Some of the largest tech companies are throwing their hats into the workforce reentry space, leaning on their data analytics prowess and existing relationships with healthcare entities in their pursuit of return-to-work tie-ups. 
Digital health companies are relying on their specific areas of expertise—employee benefits, telehealth, lab testing, voice—to craft return-to-work programs that attract businesses across industries.   
Privacy hangups surrounding employee surveillance are still inhibiting employers from investing in and implementing return-to-work tech, and the changing legal landscape may also make it difficult to to implement workforce reentry programs, especially those than lean heavily on contact tracing. 

 
In full, the report: 

Provides a snapshot of the tech-focused return-to-work market.
Outlines ways in which prominent tech companies and digital health startups are pivoting to roll out workforce reentry solutions. 
Highlights the pros and cons of implementing return-to-work solutions.
Identifies the legal and privacy-related barriers that exist—and will likely persist—to investing in tech-focused return-to-work solutions.

Interested in getting the full report? Here’s how you can gain access:

Join other Insider Intelligence clients who receive this report, along with thousands of other Digital Health forecasts, briefings, charts, and research reports to their inboxes. > > Become a Client

Purchase the individual report from our store. > > Buy The Report Here

Are you a current Insider Intelligence client? Log in and read the report here.Join the conversation about this story »

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