Dive Brief:
- The FDA agreed to review a "digital pill" from Otsuka Pharma and Proteus Digital Health.
- The pill includes an ingestible sensor able to record when the pill is actually taken. The device will initially be paired with Abilify, a drug for depression and schizophrenia.
- The ingestible sensor sends a signal to a wearable patch after the pill reaches the stomach. The patch records and time-stamps the information and includes other metrics such as rest, body angle and activity patterns. The data are then relayed to a mobile phone or other Bluetooth-enabled device and, with the patient's permission, to a physician or caregiver. Information is viewable using a secure software application on their phone.
Dive Insight:
According to Forbes, this may usher in a new class of medications that may make traditional pills obsolete and insurers may opt to only pay for digital meds as it may be much more cost effective.
A 2014 analysis by researchers at Johns Hopkins Bloomberg School of Public Health estimated medical noncompliance tops up to $300 billion every year in healthcare costs. And, according to Forbes, up to 50% of those with chronic diseases in developed countries are noncompliant with prescription drugs, decreasing medication efficacy and increasing complication risks. Ensuring compliance for chronic diseases (diabetes, hypertension, mental illness, etc.) could, reports Forbes, lead to enormous cost savings.
According to Forbes, StarUp Health estimated that almost $7 billion was invested in the digital health sector last year, along with $2.8 billion in the first half of 2015.