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.
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.
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 …read more
Source:: Business Insider