If we moved to outcomes-based pricing then existing drugs that come to market will look for solutions to help them achieve those outcomes as part of a bundle. If a patient doesn’t take their drugs and therefore has bad outcomes, the drug companies will want to invest in tools/software/services that work in conjunction with their drugs to ensure... See more

The concept of pricing tied to volume has become outdated now that we have extremely expensive one-shot cures like Zolgensma and digital therapeutics which have near 0 marginal cost to giving one more “dose”.

Second, the line between a diagnostic and a therapeutic start blurring. One version of the game could help assess whether a child has low-grade ADHD, and transition them into the therapeutic version of the game. Plus the game is already assessing and modifying itself based on in-game performance anyway so it has to have some diagnostic properties... See more

I think digital therapeutics are just another proof point that we need to move past our current volume-based “number of units sold” pricing model and into an outcomes-based “did it actually work?” one.