A new DTx gamble: Lower prices
At this point, you’re probably familiar with the standard digital therapeutics (DTx) pitch: Instead of prescribing a medication, clinicians prescribe a digital treatment, often administered through an app.
This treatment approach is increasingly popular in the behavioral health space. Or, at least it is in the headlines. When it comes to these products getting buy-in from actual clinicians and patients, there’s a little less excitement.
The story: Otsuka, which offers a DTx solution for major depressive disorder, is putting its treatment on the market. The product is called Rejoyn, and it’s a six-week treatment based entirely in an app.
Why is this interesting?: In short, how Otsuka is charging for Rejoyn.
- No payers have contracted with Otsuka yet, but the company intends to charge them $200.
- Otherwise, the product rings in at an introductory out-of-pocket cost of $50.
- Compare this with the pricing we got from the (now bankrupt) Pear Therapeutics, which charged $1000 for its prescription mental health DTx products.
The strategy: Otsuka seems to think these lower prices will get their product into patients’ hands quicker.
- This result would be good for patients, but it’s also a strategic market move.
- DTx often struggle to win market share after making significant investments in product development and clinical testing.
- In getting that revenue ball rolling, Otsuka knows it’ll initially lose money on Rejoyn, but they’re here to play the long game.
What’s next for DTx?: More trust-building.
- This lower price from Otsuka may get more patients and clinicians familiar with the DTx approach, which is good for Otsuka and the overall DTx market.
DTx buy-in will likely also shift as we get more data on this type of product’s efficacy—with respect to both outcomes and cost.