The Collapse & Comeback of Digital Therapeutics: What the Industry Learned and Where It’s Going Next
For a few years, digital therapeutics were treated as inevitable. Prescription apps would scale like software, improve outcomes like medicines, and disrupt chronic care economics along the way. Venture capital flowed, regulatory clearances multiplied, and early reimbursement wins were celebrated as proof that the model worked. Then reality intervened. Pear Therapeutics’ bankruptcy in 2023 didn’t just mark the failure of one company; it exposed structural weaknesses across the DTx ecosystem. FDA clearance alone didn’t translate into payer coverage. Engagement at scale proved harder than expected. And many business models assumed a willingness to pay that health systems never truly committed to. What followed wasn’t the end of digital therapeutics; it was a reset. What the Downturn Actually Revealed The post-Pear correction forced uncomfortable questions. Most importantly: what problem is DTx solving, and for whom? Many early products focused heavily on clinical validation but un...