* This chart and data were pulled from the Digital Therapeutics Report by Insider Intelligence. Purchase the report here to get immediate access to the full analysis. |
Digital therapeutics (DTx) were gaining popularity as tools to help slash the US’ $3 trillion annual spending on chronic disease. As the pandemic induced rapid growth in the DTx market, Teladoc merged with DTx firm Livongo in an $18.5 billion blockbuster deal—forming the first-ever virtual care giant and threatening to overshadow smaller digital health startups.
Now, the global DTx market is forecast to jump from a $5.8 billion to a $56 billion global opportunity by 2025. Players are racing to capture a slice of the market — here's how patients, providers, and payers could benefit from partnering with or acquiring a DTx firm: |
| Payer-DTx alliances are mutually beneficial: Payers give DTx firms access to larger patient populations and payers can use DTx to minimize the economic burden of chronic disease. For context, the US spends $3.2 trillion on chronic disease costs annually, and this spending is largely due to preventable disease—and this figure is projected to only trend upward. |
| DTx platforms present pharma companies with opportunities to both augment their existing drug portfolio and pry open revenue streams beyond traditional drugs. For context, more than 80% of the US’ $3.4 trillion healthcare costs are spent on diseases that are modifiable or reversible through behavior changes, according to insights from McKinsey. |
| DTx should help telehealth vendors improve health outcomes, and in turn prop up the value of their product to patients and payers. Considering that 93% of physicians are already using telehealth for chronic care check-ins—per the 2020 Amwell Physician and Consumer Survey—incorporating innovative solutions like DTx can... |
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