Otsuka America, a subsidiary of the Japanese drug and device maker, this month launched a new company focused on digital health. The firm, called Otsuka Precision Health, will roll out its first product this summer, a prescription digital therapeutic for major depressive disorder.
Sanket Shah, who has worked for Otsuka for more than 14 years, will lead the new company. The last year has been a challenging one for digital health firms. Funding for digital health companies in the first quarter of 2024 hit the lowest point since 2019, according to advisory firm Rock Health, and last year was punctuated by bankruptcies including digital therapeutics pioneer Pear Therapeutics 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 company.
“We’re on a journey. There’s no playbook out there,” Shah told MedTech Dive.
Other large- and mid-sized pharmaceutical companies are investing in digital and data, he said. Shah sees government regulations and adoption of digital health tools as the next phase for the sector’s evolution.
“But I don’t think there’s a one size fits all,” he said. “I think it’s really trying a handful of different options and seeing where it works, and then seeing how it all comes together to really be able to make the impact.”
Otsuka Precision Health will both develop its own digital solutions and partner with other companies. For example, the digital health firm partnered with medical app developer Click Therapeutics to make a digital therapeutic 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 March, and a launch is planned for this summer.
Otsuka also has a history in digital therapeutics. The company partnered with Proteus Digital Health to develop a version of its schizophrenia medication, Abilify, with an embedded sensor to record if the medication was taken. Proteus filed for bankruptcy in 2020, and Otsuka bought its assets for $15 million later that year.
Between Rejoyn and Abilify, Shah said mental health will be a focus for Otsuka Precision Health. But the company will also look at other solutions across its portfolio. For example, the firm is planning a launch of a solution developed in-house for caregivers of people with Alzheimer’s disease.
“I was really excited about this opportunity to say, ‘How do I think of it from a patient’s perspective?’” Shah said. “How do we start to really connect the dots for individuals to really help with 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 industries, and he hopes to achieve the same in healthcare. He also said it will be important not to revert back to the way things have been done in the past.
“It’s about trying things. We have the commitment all the way to the top to do this, and I think our leadership in Japan really does believe in digital and in data to start to have scalable solutions for individuals,” Shah said. “So we’re in this for the long haul.”