I’ve been watching the digital therapeutics (DTx) space for years. Amid an uptick of action from developers and investors alike, it’s time for an update on the DTx landscape on what current changes mean for developers looking to scale. (Note: If you’re new to this topic, you might want to start with Advisory Board’s DTx cheat sheet.)

In 2023, I flagged digital therapeutics (DTx) as a category of innovation with the potential to disrupt traditional care pathways, but with limited scalability. Two years later, the future I predicted has largely played out. Even though many DTx have come to market, foundational challenges have limited adoption. However, we’re starting to see glimmers of opportunity.

This piece outlines three critical dynamics shaping the DTx landscape and offers guidance for developers looking to scale effectively.