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Otsuka America, a subsidiary of the Japanese drug and device maker, this month started a new business focused on digital health. The company, called Otsuka Precision Health, will launch its first product, a digital prescription treatment for major depressive disorder, this summer.
Sanket Shah, who has been with Otsuka for over 14 years, will lead the new company. The last year has been difficult for digital health companies. Funding for digital health companies in the first quarter of 2024 reached lowest point since 2019according to consultancy Rock Health, and last year was punctuated by bankruptcies, including that of a pioneer in digital therapy Therapeutic Pear and telehealth company Babylon Health.
Shah said he still sees value in connecting digital solutions to provide holistic support, and plans to take a long-term approach with the new venture.
“We are on a trip. There is no playbook,” Shah told MedTech Dive.
Other large and mid-sized pharmaceutical companies are investing in digital and data, he said. Shah sees government regulations and the adoption of digital health tools as the next phase in the industry's evolution.
“But I don’t think there’s a one-size-fits-all solution,” he said. “I think it's really about trying a handful of different options and seeing where it works, and then seeing how it all fits together to actually be able to make an impact.”
Otsuka Precision Health will both develop its own digital solutions and partner with other companies. For example, the digital health company partnered with medical app developer Click Therapeutics to create a digital therapy for major depressive disorder, called Rejoyn. The six-week, app-based program requires a prescription and is used in conjunction with medication. Rejoyn was cleared by the Food and Drug Administration in Marchand a launch is planned for this summer.
Otsuka also has a history in digital therapeutics. The company has partnered with Proteus Digital Health to develop a version of its schizophrenia drug, Abilify, with a built-in sensor to record whether the medication has been taken. Proteus filed for bankruptcy in 2020, and Otsuka bought back its assets for $15 million later that year.
Between Rejoyn and Abilify, Shah said mental health will be a priority for Otsuka Precision Health. But the company will also study other solutions in its portfolio. For example, the company plans to launch a solution developed internally for caregivers of people with Alzheimer's disease.
“I was really excited about this opportunity to say, 'How can I think about this from a patient's perspective?' “, Shah said. “How can we start to really connect the dots so that individuals can actually contribute to their health experience using data and technology? »
Thinking more broadly about digital health, Shah said digital and data have made a big difference in other sectors, and he hopes to achieve the same in healthcare. He also said it would be important not to go back to the way things were done in the past.
“It’s about trying things. We have the commitment all the way to the top to make this happen, and I think our leaders in Japan really believe in digital and data to start delivering scalable solutions for individuals,” Shah said. “So we’re in this for the long haul.”