Pear Therapeutics announced it’s going public via a $1.6B SPAC merger—while we think it could trigger a string of digital therapeutics M&As, CMS reimbursement will be the key to wide-scale expansion.

SPACs and bankers have reportedly approached Omada about making a public debut—underscoring how rapidly the digital therapeutics space has transformed over the past year as companies test international waters.

Digital therapeutics (DTx) were gaining popularity as tools to help slash the US’ $3 trillion annual spending on chronic disease, and the pandemic has vaulted digital therapies into the spotlight. Now, the Teladoc-Livongo megamerger is heating up competition in the DTx space as players race to capture a slice of a market slated to reach $56 billion by 2025.

Happify Health launched the first-ever prescription digital therapy for anxiety and depression, giving it a competitive edge over its peers—but if DTx companies want doctors to prescribe their apps, they’ll need insurers on their side.

The news: Physicians debated the clinical value of digital therapeutics (DTx) at the American Diabetes Association (ADA) annual meeting that was held June 25-29, according to STAT. While some doctors agreed programs like Livongo for Diabetes helped reduce medical spending, other docs were more wary of tech like it. For example, Dr.

Digital therapeutics (DTx) company Virta Health scored $133 million in a Series E funding round led by Tiger Global, which it’ll use to expand its telehealth-powered diabetes reversal program across the US and support R&D of its products. Virta currently works with over 100 healthcare organizations and treats patients across all 50 states.

The news: Omada Health launched Omada Insights Lab, an initiative that aims to use data science to optimize the clinical efficacy and behavioral design of its digital therapeutics (DTx) products. For context, Omada Health offers DTx for a range of chronic conditions and preventative health.

Digital therapeutics (DTx) startup Akili Interactive published full results of a clinical trial, 2020 STARS Adjunct, that boast the effectiveness of its video game therapy for children with ADHD, EndeavorRx. The study included 206 ADHD-diagnosed children ages 8 to 14.

Digital therapeutics (DTx) mental health platform Happify Health scored $73 million in Series D funding, which it’ll use to build specialized digital therapies for pharma companies and payers, while pursuing global business development opportunities.

The news: Digital musculoskeletal (MSK) therapy unicorn Hinge Health scooped up Enso, the developer of an app-based wearable that delivers electrical stimulation treatment to relax patients' muscles and is used in over 100 US medical centers like Stanford and Harvard, per Fierce Healthcare.

Why it’s worth watching: Digital therapeutics (DTx) are making their way into PBMs’ formularies, which helps them land a place in payers’ benefits packages. PBMs have the buying power to negotiate pricing with pharma manufacturers and then pass on those cost-savings to the payer. They also have drug formularies, which let payers customize options for optimal value when offering plans to patients.

It could even have applications in digital therapeutics (DTx), helping users improve mobility and chronic pain like Hinge Health does. Here’s how Amazon Halo contrasts with its competitors’ wearables:.

Digital Therapeutics (DTx). DTx—or evidence-based digital therapies that help prevent, manage, or treat disease—have been inching their way into the healthcare system.

For example, Boston-based Brigham and Women’s Hospital codeveloped an AI-based RPM solution with digital therapeutics startup Biofourmis, which as of December is available to health systems across the US.

Q&A: Biofourmis founder and CEO Kuldeep Singh Rajput on how the pandemic is propelling the adoption of digital therapeutics—and his predictions on how the tech will transform healthcare. Read on Insider Intelligence ».

II: Do you see more telehealth vendors partnering with digital therapeutic startups within the next year? RM: Yes. Without a doubt, there's going to be an adoption curve with all these solutions. Digital therapeutics are incredibly valuable for the industry, and they will be something that is part of our toolkit and other virtual visit providers' toolkits to treat patients and improve outcomes.