Digital Therapeutics are reshaping how medicines are developed, delivered and experienced, pushing pharmaceutical companies to rethink long-held business models. Also known as DTx, these are evidence-based interventions delivered through validated software programmes, designed to treat a broad range of medical conditions from chronic disease to substance abuse, and are distinct from ordinary wellness or lifestyle apps. The result is a sector-wide shift that touches clinical practice, revenue models and corporate culture alike.
Improving adherence and patient outcomes
One of the clearest benefits of Digital Therapeutics lies in tackling poor medication adherence, a problem that has long undermined treatment success and driven up hospital admissions. DTx tackles this directly, using technology to empower patients and encourage active participation in their own care, with automated reminders, personalised feedback and gamified features all helping to make adherence feel less like a chore.
Real-world results back this up. Virta, which works in diabetes management, reported reversing diabetes in 60% of patients and cutting insulin use in 94% of patients. Elsewhere, DTx is enabling a shift from reactive to proactive care: remote monitoring allows healthcare providers continuous insight into a patient’s condition, supporting earlier detection of problems and reducing the need for frequent in-person visits.
A new revenue model for pharma
Beyond clinical benefits, Digital Therapeutics are opening up fresh commercial territory. DTx gives pharmaceutical companies the chance to diversify their portfolios and build new revenue streams, and pairing DTx with existing medicines can boost the overall value of a company’s offering, supporting stronger market share and profitability.
The scale of this shift is striking. The DTx market grew from $1.1 billion in 2011 to $9.4 billion by the third quarter of 2020, with forecasts for 2025 revised sharply upwards from an initial $9 billion estimate to as much as $56 billion. Business models vary widely across the sector: most companies rely on a digital solution as their core asset, with a smaller proportion built around data or hardware. Common go-to-market routes include prescription digital therapeutics, and solutions marketed to employers, payers, healthcare providers or directly to consumers, the last of which remains the least common route.
Partnerships between pharma and technology firms are also becoming a defining feature of the space, exemplified by collaborations such as Noom’s partnership with Novo Nordisk and Happify’s partnership with Sanofi.
Cultural change is the real challenge
Technology alone will not secure the benefits of Digital Therapeutics. Digital therapies are revolutionising the life sciences sector, offering the potential to close gaps in care and open new business models, but pharmaceutical companies need to make certain adjustments to capitalise on these opportunities, since DTx differs from conventional therapeutics. Alongside adopting the right technology and building digital expertise, cultural transformation is essential, requiring life sciences companies to become far more agile and comfortable with continuous innovation.
Several priorities stand out for companies making this transition. Firms should set clear ambitions for what they want DTx to achieve, both commercially and for patients, embedding these goals within the wider business and transformation strategy. A thorough understanding of the competitive landscape and regional regulation is equally important, since strategies must be adapted to the specific dynamics of different markets.
When it comes to development, companies are advised to build on existing strengths, focusing on core areas that align with their current pharmaceutical portfolio, while being clear about what should be developed in-house versus through partners such as start-ups. Underpinning all of this is a genuine digital-first mindset embraced across the organisation, alongside close attention to IT security and data protection to maintain trust in DTx solutions.
Looking ahead
Big pharma’s relationship with Digital Therapeutics remains a work in progress. While pharmaceutical companies recognise the value of new technologies and the data they generate, many remain cautious given the high regulatory barriers in their own tightly controlled sector. Even so, the direction of travel is clear: tech and data companies are best placed to build products customers enjoy using, while drug-makers bring regulatory expertise and empirical research support, and collaboration between the two is increasingly seen as essential.
As the technology matures and reimbursement models evolve, Digital Therapeutics look set to move from the margins of pharmaceutical strategy to its very centre, rewarding those companies willing to combine clinical rigour with genuine digital agility.
To join us in knowledge sharing, collaboration, and discussion around the challenges and opportunities shaping the future of laboratory innovation, meet with solution providers and hear talks from expert speakers, attend the Smart Labs Summit: Transforming Life Sciences R&D with Data, Technology & Automation, taking place October 20-21, 2026, in Barcelona, Spain.
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