Digital therapeutics (DTx) solutions market keeps evolving and developing, and partnerships play a key role in that. What are the purposes behind these partnerships in the DTx market?
The digital therapeutics (DTx) is still a forming and developing subsegment of digital health market, delivering therapeutic interventions through software programs that are backed by clinical evidence and comply with the safety and security regulations.
Even though there are a few examples like Pear Therapeutics who has filed for bankruptcy in early Q2 2023, looking at the increasing number of partnerships, there is a continuing interest among the healthcare stakeholders for the DTx solutions.
Allis recorded more than 400 partnership deals in the digital therapeutics market since 2014 until March 2023. The number of partnership deals peaked both in 2020-pandemic period and in 2022-post pandemic period.
Most of the partnerships of DTx companies have been with the pharmaceutical and insurance companies.
For example, Biofourmis and Chugai Pharmaceutical partnership that has started in 2020 for endometriosis pain assessment, expanded in 2023 for virtual specialty care service development for endometriosis patients in the US.
Novartis and Dawn Health also announced a partnership in the beginning of 2023 to develop chronic condition management tools for MS, hypertension, or breast cancer patients among others.
Some of the pharma partnerships of DTx companies also involves large upfront and milestone-based investments from the partners. For instance, Boehringer Ingelheim and Click Therapeutics have signed a $500 million USD partnership in 2020 for a digital treatment for schizophrenia. Not long ago in 2022, Sanofi also invested $30 million USD into DarioHealth’s multi condition digital therapeutics platform.
On the other side, personalized digital therapeutic program provider Virta Health was added into Blue Shield California insurance provider network in 2023. Also, Kaia Health announced the insurance partnership with Mutual of Omaha in Nebraska in the US again in 2023.
There are four main purposes that drive the partnerships in DTx market:
Overall, partnerships play an important role in the DTx market. These partnerships are primarily driven by research and development, distribution, product and service enhancements and connected devices. By forming these collaborations, DTx companies gain access to expertise and resources that allow them to develop and improve digital interventions, commercialize solutions in different countries and for a range of disease areas, get reimbursement, and provide ongoing physical health data tracking of the users.