SoftBank’s Big Health investment bets on digital therapeutics

SoftBank’s Imaginative and prescient Fund 2 is betting on digital therapeutics—apps that operate like drugs. The Japanese investment conglomerate led a $75 million funding spherical in San Francisco-based Big Health, which makes use of cell apps to deal with sleeplessness and nervousness. The investment could also be indicative of the sorts of digital therapeutics corporations which are prone to obtain investment within the yr forward.

Based in 2010, Big Health has taken a well-regarded psychological remedy known as cognitive behavioral remedy (CBT) and made it completely digital—no people concerned. Related corporations within the area, most notably Pear Therapeutics, which makes use of CBT to deal with substance use dysfunction, have sought approval from the U.S. Meals and Drug Administration in order that their digital therapeutics may be prescribed, growing the chance that insurers will cowl them. However Big Health has taken a distinct tack. Its apps, Sleepio (insomnia) and Daylight (nervousness), can be utilized by anybody with no prescription.

To get the apps lined by insurers, the corporate has spent a lot of time increase educational research proving their efficacy, with 13 randomized managed trials. A 2021 study discovered that Sleepio, when used at the side of weekly remedy classes for melancholy or nervousness, led to improved sleep in comparison with remedy alone. The distinction in outcomes was not earth-shattering (65% of Sleepio customers recovered from sleeplessness, versus 59% of the management group). Nonetheless, it proved the app may enhance outcomes with out breaking the financial institution. Maybe extra compelling was a study amongst pregnant girls that confirmed Sleepio not solely helped them sleep higher but in addition that solely 4% of girls who used the app had signs of postpartum melancholy and nervousness, in contrast with 18% within the management group.


These encouraging knowledge factors have led to partnerships with the Nationwide Health Service within the U.Okay., in addition to CVS Caremark, a pharmacy profit supervisor that serves employers, unions, and insurers. By way of its CVS Caremark relationship, Big Health has signed greater than 45 U.S. employers, together with Boston Medical Middle, the Hartford Monetary Providers Group, Delta Airways, and Goal as shoppers. In complete, its apps have 250,000 customers, 180,000 of whom reside within the U.S., and can be found to a complete of 10 million individuals by way of partnerships.

Against this, in November 2021 Pear Therapeutics was monitoring towards 12,500 prescriptions complete for the yr (with the objective of reaching 30 million covered members). As digital therapeutics corporations proceed to navigate the regulatory and insurance coverage panorama, their options might look extra like Big Health’s.

Corporations are exploring the potential for bundling drugs with digital interventions as a approach of getting insurers on board.

SoftBank previously invested in Pear Therapeutics, main the corporate’s $80 million collection D spherical in 2020. Pear went public in December by way of a SPAC (special-purpose acquisition firm)—an alternative to an preliminary public providing that’s well-liked amongst healthcare corporations—and is now buying and selling on Nasdaq below the ticker PEAR. The merger was valued at $1.6 billion. However Pear has had issue making inroads with insurers. That could be, partially, as a result of it hasn’t proven that its apps are cost-effective. A 2020 report from the Institute for Medical and Financial Evaluate stated that at its present value, there was not sufficient proof to exhibit a internet well being profit for reSET-O, Pear’s remedy for opioid use dysfunction. The corporate countered with a study published a few months later exhibiting that if sufferers interact with its app, it will probably assist decrease healthcare prices related to these sufferers.

Nonetheless, even when Pear can persuade insurers to reimburse, it must get medical doctors to prescribe it, which can be one more hurdle. Plus, it’s in competitors with a rising discipline of apps for treating a number of forms of substance use problems that transcend offering CBT.

What is going to Big Health do with its contemporary infusion of money from SoftBank and others? “My intent is that these funds are used to scale out the industrial operate and develop reimbursement protection, radically, and speed up the pipeline by way of new therapeutics,” says CEO Peter Hames. His subsequent large push is to get insurers to make his apps a part of their providing to members. 

Different corporations in digital therapeutics are exploring the potential for bundling drugs with digital interventions as a approach of getting insurers on board. Biofourmis, one other SoftBank investment, lately was awarded the FDA’s breakthrough device designation for its coronary heart failure prevention system that gives treatment dose suggestions primarily based on very important indicators. Along with working with well being methods, the corporate additionally partners with pharmaceutical companies to develop digital interventions that make their medicine simpler. For instance, in 2019 it collaborated with Novartis to make use of its coronary heart monitoring system amongst sufferers susceptible to coronary heart failure in Southeast Asia.


Some pharmaceutical corporations want to create their very own digital therapeutics alongside novel medicine. Atai Life Sciences is growing 9 medicine to deal with a variety of psychological well being illnesses whereas additionally constructing out digital therapeutics to make these therapies rather more focused to the person affected person.

What the Big Health funding exhibits is that buyers are eager to see how corporations can get their digital therapeutics used—whether or not by way of hanging sensible partnerships with well being methods and pharmacy profit managers or making them a part of an FDA-approved drug routine.