Published on December 22nd, 2016 | by Guest0
Digital Therapeutics Set to Make Its Mark in the Health Tech Industry
“The major focus of digital medicine is on curing or managing the disorders or diseases that have no cure by alternative drugs, such as type 2 diabetes, obesity, mental disorders, etc.” – 2016 Market Research Report
The healthtech industry is thriving. It is one of the latest industries to be disrupted by many startup companies with technology that will advance our healthcare system, both now and in the future. In fact, it was predicted by some to be the most profitable industry in 2016.
“The explosive growth of the tech industry is not only eclipsing other major industries but is also beginning to infiltrate them,” writes Shane Paul Neil, citing a study from Deloitte. “In some cases, swallowing them whole. Part of the impetus behind technologies spilling into other industries has been the unceasing growth of the Internet of Things.”
Startup funding for healthtech companies is expected to more than double between 2013 and 2017. So far, it is on track to meet this goal. Tech.co also listed it as the top industry to go into if your goal is to exit.
Startup funding for digital health expected to surpass $6.5 billion by 2017. Image courtesy of BusinessWire via Accenture Research.
One industry that is set to make an even bigger impact on healthtech is digital therapeutics.
What is Digital Therapeutics?
Digital therapeutics is a health discipline that is used in the treatment of numerous conditions, both physical and psychological. It utilizes devices such as mobile apps and Internet of Things devices. In addition to treatment of conditions, it can be used as a prevention tool for at risk patients such as those who are overweight or likely to develop conditions such as diabetes.
One such company that is using digital therapeutics to fight diabetes is Omada Health, which recently took in $48 million dollars in a Series C round of investment. Using information from a study conducted by the National Institutes of Health, it created an online application that tracks health habits such as eating and exercise. Throw in the online help and live chat features, and the company hopes to reduce the cost of healthcare in the form of preventative medicine.
“Healthcare costs are up,” says trial attorney Lawrence J. Buckfire, who runs the website Drug Lawsuit Source. “There is no sign of costs dissipating any time soon so we need to do things on our own to help minimize our future cost. One such thing is preventative medicine.”
The benefit of digital therapeutics is that it is done in a digital format so data can be collected and utilized for further treatment. It can also be used to help treat conditions that otherwise have no cure and must be managed on a day to day basis. This can save money on healthcare costs due to the prevention of future conditions.
How it is Impacting HealthTech
Healthtech is all about improving patient health while at the same time saving money. Digital therapeutics does both. It will also help manufacturers of devices such as smartphones and tablets, as well as software developers who create mobile apps.
“Digital therapeutics are typically cheap, and they have shown impressive ability to change behavior, one of the most important challenges in healthcare.” This according to Forbes contributor, Todd Hixon, citing the ability to save money as a factor making digital therapeutics very attractive.
Digital therapeutics will have a huge impact as it is the next wave of healthtech to complete the puzzle of digital health. It ties together wearables and telehealth which have already been dominating the healthtech sector. Throw in big data and digital therapeutics have a chance to become the most dominate field in the healthtech industry moving forward.
What are your thoughts on digital therapeutics and the state of healthtech as a whole?