Digital therapeutics are software-based interventions that deliver clinically evaluated treatment for specific medical conditions, typically prescribed by a clinician and reimbursed through payers or paid for by employers. The category sits between consumer wellness apps and traditional pharma - products are validated through randomised controlled trials, run through FDA or equivalent regulatory pathways, and carry indication-specific labels. Reimbursement has remained the central commercial bottleneck. Pear Therapeutics, the publicly listed pioneer of the category, filed for bankruptcy in 2023 after failing to secure broad payer coverage, and Better Therapeutics delisted from Nasdaq the same year. The survivors have largely pivoted to employer-paid and risk-sharing models.

The sector spans prescription digital therapeutics (PDTs) for chronic disease, behavioural and mental health DTx, musculoskeletal (MSK) digital care, cardiometabolic and diabetes management programs, and ADHD and cognitive disorder DTx aimed at pediatric and adult populations.

Revenue comes from employer per-member-per-month (PMPM) contracts paid by self-insured employers and benefits brokers, health plan reimbursement under medical or pharmacy benefit, outcomes-based payments tied to engagement and clinical results, direct-to-consumer subscriptions for non-prescription wellness adjacencies, and pharma partnership deals where DTx products are bundled alongside drug therapies.

Digital therapeutics is part of Digital health.