Digital Therapeutics Explained: DTx market trends & top companies delivering on the latest digital health opportunity
This is a preview of The Digital Therapeutics research report from Business Insider Intelligence. Purchase this report. Business Insider Intelligence offers even more healthcare coverage with Digital Health Pro. Subscribe today to receive industry-changing digital health news and analysis to your inbox.
A new class of medicine — digital therapeutics (DTx) — has emerged, offering a novel means of treating the swelling number of patients with chronic diseases and keeping associated costs down. Digital therapeutics deliver evidence-based therapies via software — often in the form of consumer-facing 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. DTx vendors leverage their tech to treat chronic conditions, which gobble up the lion's share of the US' healthcare spending: Business Insider Intelligence estimates that the US shelled out up to $3.3 trillion on chronic disease in 2018. The surging prevalence of chronic conditions combined with their sky-high price tags is fueling fast growth in the global DTx market, which is poised to expand 21% annually to hit nearly $9 billion by 2025. The sea change sparked by the advent of digital medicines threatens to reshape the entire healthcare value chain. Because drugs interact with nearly every healthcare stakeholder, DTx solutions are leading a variety of players to carve out room for digital solutions: Pharmacy benefit managers (PBMs) are creating logs for DTx as they would drugs, insurers are linking their members up with digital solutions in an effort to mitigate spending, and entrenched pharma and medtech companies are tying up with DTx vendors to dip into new revenue streams. Those that choose not to get on the DTx bandwagon might miss out on a massive opportunity — and we think laggard drugmakers and medical device makers that don't jump at the chance of linking up with DTx providers could put themselves at risk of losing market share to new competitors. In this report, Business Insider Intelligence will explore the drivers lighting a fire under the DTx market, identify the leading DTx market players, and unpack the varied ways vendors reach their intended audiences. We will also assess both the opportunities and risks DTx companies and their products pose to payers, pharmaceutical companies, and medtech firms. Finally, we will forecast what we expect to see next in the DTX space and outline the barriers holding DTx firms back to help stakeholders navigate the crowding field and develop strategies to capture a piece of the DTx pie. The companies mentioned in this report are: 23andMe, 2morrow, Inc., Advocate Health Care, Akili Interactive, Apple, Aptar Pharma, Aurora Health Care, Bayer, Better Therapeutics, Big Health, Biofourmis, Blue Shield of California, Cambia Health Solutions, Cigna, Click Therapeutics, Cognoa, CVS Caremark, DarioHealth, Dexcom, Diabeto, Eli Lilly, ExpressScripts, Glooko, Happify Health, Health2Sync, Kaia Health, Lark Health, Livongo, MedRhythms, myStrength, mySugr, Noom, Novartis, Novo Nordisk, Omada Health, Omron, One Drop, Otsuka, Pear Therapeutics, Propeller Health, Proteus Digital Health, ResMed, Retrofit, Roche, Sanofi, Teva Pharmaceutical, Teladoc, UnitedHealth Group, Vida Health, Virta Health, Voluntis, Walgreens, Walmart, and Welldoc. Here are some key takeaways from the report:
Digital therapeutics are shaking up the healthcare value chain: The digital therapeutics market is set to triple in size over the next six years, blossoming into a $9 billion opportunity — and Business Insider Intelligence predicts consumer adoption of the digital treatments will grow more than 10-fold by 2023. Payers should stock portfolios with digital therapeutics to shore up on drug spending, curb their sizable share of chronic disease costs, keep patients healthy, and woo employer contracts. Proactive pharmaceutical firms and medical device makers can benefit from DTx's proliferation through tie-ups with vendors that give the incumbents access to piles of real-time data as well as the possibility to expand revenue opportunities through commercializing new products and programs — but sluggish drug- and device makers risk waving goodbye to consumers opting for digital solutions. We expect to see heightened activity in the space over the next several years, but hurdles to growth remain, including winning over doctors and consumers as well as paltry reimbursement from the Centers for Medicare and Medicaid Services.
In full, the report:
Provides a roadmap to the digital therapeutics market and explains how companies developing digital drug alternatives are transforming healthcare. Identifies key players operating in the space. Explores how digital therapeutics stand to benefit — and threaten — entrenched players, like payers, pharmaceutical companies, and medical device makers. Considers what the future of digital therapeutics looks like and what still stands in the way of their proliferation.
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Purchase and download the full report from our research store. >> Purchase & Download Now Sign up for Digital Health Pro, Business Insider Intelligence's expert product suite 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 Join thousands of top companies worldwide who trust Business Insider Intelligence for their competitive research needs. >> Inquire About Our Enterprise Memberships Current subscribers can read the report here. Join the conversation about this story »
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THE DIGITAL HEALTH COMPETITIVE EDGE REPORT: How the big four US insurers rank on digital feature awareness — and what it means for customer satisfaction (AET, ANTM, CI, UHC)
This is a preview of THE DIGITAL HEALTH COMPETITIVE EDGE REPORT from Business Insider Intelligence. This report...This is a preview of THE DIGITAL HEALTH COMPETITIVE EDGE REPORT from Business Insider Intelligence. This report is exclusively available to enterprise subscribers. To learn more about getting access to this report, click here. As digital permeates every corner of the US healthcare sector, the big four US insurers — Aetna, Blue Cross Blue Shield, Cigna, and UnitedHealthcare — have padded their health plans with digital tools that customers can use to seek medical advice, navigate costs, or contact customer service. And several of these features are considered must-haves for respondents to our proprietary survey who are US Tech Early Adopters, or those who identified as either a first adopter or early adopter of new technologies. But a notable share of US Tech Early Adopters who hold plans with the big four US insurance companies aren't aware that their health plans offer various digital features, creating a window of opportunity for US health insurers to shore up their digital strategies to create a superior customer experience and solidify their market footing in the face of tech-focused entrants. And because we expect that digital will become synonymous with the US health insurance experience over the next decade, insurers that develop a robust digital strategy now will be in a good position to become market leaders. In The Digital Health Competitive Edge Report, Business Insider Intelligence uses primary research to rank the big four US health insurers — Aetna, BCBS companies, Cigna, and UnitedHealthcare — on awareness of their digital features among customers who are US Tech Early Adopters. By measuring member awareness of digital insurance features, we can help pinpoint areas where the big four US payers can improve their digital strategies. This report can also serve employers in selecting a health plan to contract with, as it will detail consumer awareness of features they may deem important to offer their workers. The companies mentioned in this report are: Aetna, Anthem, Apple, Berkshire Hathaway, Blue Cross Blue Shield Association, BlueCross BlueShield of Tennessee, BlueCross BlueShield of Western New York, Bright Health, Cigna, Clover Health, Devoted Health, Doctor On Demand, Fitbit, Garmin, Humana, JPMorgan Chase, MDLive, Oscar Health, Samsung, UnitedHealthcare, UnitedHealth Group. Here are some of the key takeaways from the report: Digital is a nascent but growing part of the US health insurance customer experience. US Tech Early Adopters already rate some digital insurance features as must-haves, suggesting digital will become a more important determinant of customer satisfaction. A significant proportion of US Tech Early Adopters aren't aware that their health insurance plan includes high-value digital features. There's an opportunity for the big four US insurers — Aetna, BCBS, Cigna, or UnitedHealthcare — to emerge as digital leaders and improve customer satisfaction. Growing pressure from external threats should amplify the sense of urgency for payers to move on strengthening their digital services. In full, the report: Uses primary research to rank the big four US health insurers on awareness of their digital features among customers who are US Tech Early Adopters. Identifies which digital insurance features respondents value most. Helps pinpoint areas where incumbent US insurers can improve their digital strategies. Evaluates which digital health insurance features are likely to be most in-demand over the next 10 years. Interested in getting the full report? >> Check to see if you already have access through your companyJoin the conversation about this story »
BIG TECH IN HEALTHCARE: Here's who wins and loses as Alphabet, Amazon, Apple, and Microsoft hone in on niche sectors of healthcare
This is a preview of The Big Tech in Healthcare research report from Business Insider Intelligence....This is a preview of The Big Tech in Healthcare research report from Business Insider Intelligence. Purchase this report. Business Insider Intelligence offers even more technology coverage with Connectivity & Tech Pro. Subscribe today to receive industry-changing connectivity news and analysis to your inbox. The Big Four tech companies — Alphabet, Amazon, Apple, and Microsoft — are accelerating their pursuit of the healthcare market, and they're starting to hone their strategies in on specific corners of the ecosystem. US healthcare players are being forced to move on their digital transformation efforts, and Alphabet, Amazon, Apple, and Microsoft are lending their data prowess and tech-savviness to become attractive partners for the job. Healthcare organizations have to contend with a population that's growing sicker, heightened costs, and shifting consumer demands for fast and convenient services. Further, the electronic health record (EHR) boom over the last decade has ushered in the need for organizations to revamp infrastructure and IT strategies. The Big Four have stepped in to alleviate these issues, bridging technological gaps that give health organization partners the opportunity to realize cost savings and bolster their top lines. These players are ramping up their efforts to reshape healthcare by developing and collaborating on new tools that could be a boon to consumers, medical professionals, and insurers. And they're zeroing in on specific areas within healthcare: For instance, Microsoft dropped its consumer-facing wearables and health record system to narrow its focus on its cloud offerings for health systems, Apple is knuckling down on clinical research initiatives via its wearables, Alphabet is focusing on its AI expertise to drive precision medicine, and Amazon is reaching across the board — from pharmacy to medical supply delivery to telehealth. And while their health plays have presented myriad opportunities for healthcare stakeholders, some of the tech giants' initiatives are encroaching on legacy players' businesses and upsetting incumbents. In this report, Business Insider Intelligence explores the key strengths and offerings the Big Four tech giants bring to healthcare — and how each is homing their healthcare strategy in on different corners of the market. We outline how their healthcare plays are causing a tidal change throughout the healthcare industry, examining how each player benefits and threatens healthcare incumbents. Finally, we lay out the barriers holding the Big Four back from reaching their full potential in healthcare. The companies mentioned in this report are: AbbVie, Adidas, Aetna, Allscripts, Alphabet, Amazon, Ancestry, Apple, Ascension, Berkshire Hathaway, Blue Cross Blue Shield, Bright Health, Calico, Cerner, Cleveland Clinic, Clover Health, Color, CVS, CVS Caremark, Deepmind, Devoted Health, Dexcom, Duke University Health, Eli Lilly, Emory Healthcare, Epic, Fitbit, Giant Eagle Pharmacy, Gilead Sciences, Google, GSK, Haven, Health Navigator, iRhythm, JPMorgan Chase, Mayo Clinic, Meditech, Microsoft, Moorfields Eye Hospital, New York-Presbyterian, Nike, Noom, Northwestern Medicine, Novartis, Nuance, Oasis Medical Group, Onduo, Optum, Orbita, Otsuka, Pfizer, PillPack, Premera, Providence St. Joseph Health, Quest Diagnostics, ResMed, Rite Aid, Sanofi, Seattle Children's Hospital, St. Jude Children's Research Hospital, Stanford University, Suki, Summit Pacific Medical Center, Surescripts, UnitedHealthcare, UnitedHealth Group, University of California, University of Chicago, Verily Life Sciences, and Walgreens. Here are some key takeaways from the report: Alphabet, Amazon, Apple, and Microsoft are gunning to carve out spaces within the healthcare market, and each is targetting its own set of sectors to transform or disrupt. Microsoft is focused on its race with Amazon and Google to lay claim to the healthcare cloud market, Apple is knuckling down on clinical research initiatives via its wearables, Alphabet is focusing on its AI expertise to drive precision medicine, and Amazon is shaping up to disrupt the pharmacy, virtual care, and telehealth realms. Their moves into healthcare are providing health systems with tech needed to patch up interoperability and data sharing gaps, giving healthcare payers a chance to collect a more comprehensive set of health data for members, and granting pharma companies the ability to streamline drug development and manufacturing. But tech giants' forward march into healthcare is, in some cases, troubling incumbents. Amazon's prescription delivery play has traditional pharmacies looking for ways to retain their customer bases, for instance, and Alphabet is building an ecosystem that we think could put it at odds with top dogs in the EHR industry. And their inroads into the healthcare space may be stymied by consumers' meager trust in tech companies handling their health information as well as a rampant cybersecurity crisis that could have healthcare firms holding off on tech investments. In full, the report: Provides an overview of Alphabet's, Amazon's, Apple's, and Microsoft's most prominent healthcare projects and plans. Highlights the persistent gaps in the US healthcare system that provide these companies and their cutting-edge technologies with entryways into the industry. Identifies the incumbent healthcare players that will benefit from and be threatened by big tech companies' foray into healthcare. Outlines the barriers that are still in place that are stifling tech giants' dive into the health space. Want to learn more about the fast-moving world of digital health? Here's how to get access: Purchase & download the full report from our research store. >> Purchase & Download Now Sign up for Digital Health Pro, Business Insider Intelligence's expert product suite 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 Check to see if you already have access to Business Insider Intelligence through your company, or inquire about access if you don't. >> Check If You Have Enterprise Access Current subscribers can read the report here. Join the conversation about this story »
This story was delivered to Business Insider Intelligence Digital Health Pro subscribers earlier this morning. To...This story was delivered to Business Insider Intelligence Digital Health Pro subscribers earlier this morning. To get this story plus others to your inbox each day, hours before they're published on Business Insider, click here. Consumers with chronic myeloid leukemia (CML) — a rare form of blood-cell cancer — who were equipped with CVS' two-way messaging app for medication adherence were 22% more likely to stay on course with their drug regimens than those without the app, FierceHealthcare reports. CVS likely targeted CML patients because medication adherence is key to stifling progression of the condition: 90% medication adherence or better in the first year post-diagnosis significantly increases patients' chances at readmission. CVS has kicked its efforts to fuel improved health outcomes into high gear since fusing with health insurance titan Aetna, and now it's tackling specialty pharmacy — one of the industry's costliest qualms. Specialty drugs accounted for less than 1% of prescriptions, but drove 40% of employer-based pharmacy benefit group Willis Towers Watson's Rx Collaborative's total drug spending in 2018. And some industry pros predict that specialty drugs will account for 55% of US drug spending in 2020, per PwC. Since private insurers like Aetna are up against astronomical specialty drug costs and must contend with the high costs associated with patients' nonadherence, it makes sense why they'd seek to link consumers with digital tools to ensure they stick to their regimens. And this isn't the only health-boosting digital initiative the pharmacy has in the works: CVS is also in the midst of exploring how smartwatches can keep track of health metrics and augment medication adherence. We've seen pharmacy benefit managers (PBMs) taking a more active role in facilitating digital transformation as more insurers bring these players in-house. As middlemen between drug makers, insurers, and pharmacies, PBMs operate in the background of the healthcare ecosystem and have substantial negotiating power — thus, they've faced less pressure to transform than other industry players. But now, the US' largest PBMs share a roof with the largest insurers: PBMs Express Scripts, OptumRx, and CVS Caremark are all directly linked with Cigna, UnitedHealthcare, and Aetna, respectively. And Anthem rolled out a PBM of its own this year. As insurers look for ways to stanch spending on drugs, we should see more PBMs tweaking their business models to carve out space for digital tools and treatments that could help reduce expenditures: CVS Caremark and Express Scripts unveiled digital health formularies this year, and we think the other top dogs will follow suit in the year ahead considering digital therapeutics — and platforms like CVS' adherence solution — show promise for boosting outcomes. Want to read more stories like this one? Here's how to get access: Sign up for Digital Health Pro, Business Insider Intelligence's expert product suite 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 Join thousands of top companies worldwide who trust Business Insider Intelligence for their competitive research needs. >> Inquire About Our Enterprise Memberships Explore related topics in more depth. >> Visit Our Report Store Current subscribers can log in to read the briefing here. Join the conversation about this story »