Proteus Digital Health's expected $100 million funding round fell through - Business Insider

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Proteus' financing blunder is the latest sign that high-flying DTx developers are working in an entrenched healthcare industry that is not able to fully embrace them yet:

But winning over reticent patients hasn't been easy, per CNBC — which could be weighing on Proteus' ability to rake in cash. Prescription drug-taking is common practice — of US consumers take at least one prescription medication — so adding in novel elements like Proteus' accompanying digital tech might not appeal to patients who are accustomed to traditional methods.

We've seen pharma companies that have presented interest in the space soften their DTx strategies — which could show that commercialization efforts aren't producing a high enough return yet for deep-pocketed drugmakers: For example, Novartis with Pear Therapeutics — developer of digital treatments for mental health conditions — in October, calling into question just how valuable partnerships with smaller digital players are for massive pharmaceutical companies.

We think that pharma companies have a lot to ultimately gain from diversifying offerings with digital alternatives — but it's evident that marketing these solutions to patients and docs is proving difficult right now, especially since the regulatory pathway for DTx is still being Because it appears DTx firms still have ample work to be do before they can get their solutions into the hands of the masses, we could see legacy drugmakers take a more conservative approach to funding this year.

to newcomers' funding rounds. But until these players are able to effectively generate a return on digital meds, we could see fewer pump cash into the sector in the year ahead., Business Insider Intelligence's expert product suite keeping you up-to-date on the people, technologies, trends, and companies shaping the future of healthcare, delivered to your inbox 6x a week. >>

 

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