After flying high in 2022, digital therapeutics (DTx) companies crashed to Earth in 2023 and scrambled to identify a path to profitability, or at least continued viability.
Echoing trends seen last year, the med-tech industry concluded 2023 with a continued surge in deal value juxtaposed against a more substantial decline in M&A value. Deal value for the year, including licensings, collaborations and joint ventures, reached $10.63 billion from 1,656 deals, the highest annual value in BioWorld’s records.
To say that 2023 continued to be a difficult fundraising environment for companies in Europe is an understatement. However, there were some green shoots and investors continued to back companies, seeing opportunities across the health tech, med-tech and biotech space.
Asia continues its push to be the global leader with precision health and artificial intelligence/machine learning (AI/ML) models for diagnosing disease. Most health care systems in Asia’s major markets include universal health care coverage and are leaning toward electronic health records, paving the way for seamless use of data. At the same time, AI/ML is making its way across the entire health care spectrum, including applications to diagnose breast cancer, kidney disease, cognitive decline, depression and even retinal imaging to detect cardiac disease.
Researchers have used explainable artificial intelligence (explainable AI) to find structurally new antibiotics with minimal toxicity. They reported their findings online in Nature on Dec. 20, 2023. In animal testing, compounds identified via the method showed that they had activity against drug-resistant gram-positive bacteria including methicillin-resistant Staphylococcus aureus (MRSA), one of the most serious bacterial public health threats.
Apollo Neuroscience Inc. recently introduced a new software called Smartvibes for its Apollo wearable device to help people lower their stress levels and sleep better. There are a growing number of wearable technologies that have sensors that continuously measure physiological signals to help individuals monitor and manage their health conditions.
With hybrid closed-loop systems for automated insulin delivery increasingly being seen as life changing for people with diabetes, Vicentra BV has teamed up with Diabeloop SA and Dexcom Inc. to launch a system to help people with type 1 diabetes manage their condition.
Digital health is on the cusp of transforming health care, and it’s not just about electronic health records, it’s about connecting medical devices with data and artificial intelligence and machine learning to improve health outcomes, panelists said during the Ausbiotech conference held in Brisbane, Australia, Nov. 1-3.
Sofinnova Partners hauled in $200 million in investment for its digital health fund as investors’ appetite for companies developing solutions for health care using digital technology continues to grow.
Responding to the burgeoning field of digital health, the U.S. FDA reported the creation of a new Digital Health Advisory Committee that it expects to be up and running in 2024.
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