The traditional approach of selling digital therapeutics as prescription drugs has proven to be unsuccessful, as demonstrated by the bankruptcy of Pear Therapeutics. Despite receiving FDA clearance for its app treating substance use disorders and insomnia, Pear Therapeutics struggled to get insurers to cover their treatments. Sticking to their original plan ultimately cost the company over $400 million in investment before they finally gave up. This failure highlighted the challenges of marketing software-based treatments as drugs, signaling the need for a different approach.
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How digital therapeutics firms are pivoting after Pear’s bankruptcy
