Digital Therapeutics: From Funding to Revenue Generation - A Strategy for Today’s Game
This article summarizes a discussion held during the annual Health session, with representatives from Evercore, Achille Inc., AppliedVR, Propeller Health, Big Health, Jio Health, and the Digital Therapeutics Alliance discussing the funding landscape and commercialization strategies for digital therapeutics (DTx).
The panel emphasized the potential of DTx to treat a broad range of health conditions, beyond mental health to chronic conditions and physical diseases. However, they noted the challenging funding environment, suggesting firms focus on near-term revenue generation. Several strategies were suggested, including forming pharma partnerships, focusing on direct-to-consumer models, or even changing their commercial strategies.
Samir Patel from Evercore warned smaller DTx firms about tightening wallets, suggesting it may create a funding bottleneck. To counter this, companies should look for ways to maximize revenue and explore different avenues such as farmer partnerships, provider systems, or looking to international markets. For instance, Achille Inc. pivoted from requiring a prescription to a non-prescription FDA-cleared approach that involves direct patient contact and fast-tracked treatment approval. On the other hand, Click Therapeutics has entered into partnerships with pharmaceutical companies for developing their therapeutic programs.
The speakers also emphasized the importance of aligning disease burden, pharmaceutical care, and ROI for accelerating adoption. They noted catalysts, such as the Access to PDT Act could provide a significant push for the industry. The bill, if passed, would ensure coverage and categorize digital therapeutics as a stand-alone benefit.
Overall, the panelists highlighted the importance of targeting appropriate patient populations, ensuring robust evidence for their therapies, considering international markets and other payment pathways, and collaborating with providers to identify potential patients. Despite significant challenges, the panelists remain optimistic about the progress and potential of digital therapeutics.