App-based Medical Treatments to Increase to 130 million by 2023

The number of people using digital therapeutics is expected to increase from an estimated 4.5 million in 2018 to 130 million by 2023.
According to a study from Juniper Research, digital therapeutics software, clinically proven to treat medical conditions, will be adopted enthusiastically by many healthcare stakeholders.
The new research, Digital Therapeutics & Wellness: Disruption, Innovation Opportunities & Forecasts 2018-2023, found that growth will be fuelled by self-insuring businesses in the US wanting to save on costs, as well as interest from healthcare providers and insurers.
Compared to medical bills for chronic conditions, digital therapeutics subscriptions, costing a few hundred dollars per person per year, offer large savings on drug costs and their inherent potential complications. Juniper anticipates revenue from self-insured employer-paid digital therapeutics will exceed $5.2 billion in 2023.
The research found significant opportunities for businesses that manage healthcare systems and integration, as well as for health insurers. Insurers could also potentially offer digital therapeutics for some conditions without reference to drug companies.
Juniper is optimistic that annual spend from insurers is to reach $6.3 billion by 2023 adding this is dependent on being able to integrate digital therapeutics into existing healthcare workflows.
Investment by drug companies in this area has been limited so far. Juniper considers digital therapeutics to be both an opportunity and threat for pharmaceutical companies, as it could offer new business for them, but also erode their revenues through insurers developing or acquiring their own treatment platforms.
Research Author, James Moar explained that the research shows that the average time from development to commercialisation for a digital therapeutic is 3-4 years noting, “This gives drug companies and insurers an opportunity to bring chronic condition treatment to market in a fraction of the time and cost of drug development.”
Maureen Akello, East Africa

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