[DTx Asia] Medicine + Galaxy Watch = 'DTx'?

DTx is the Combination of Digital and Medicine
Collaboration with Existing Players Such as Hardware Manufacturers and Pharmaceutical Companies is Essential

On the 8th, a discussion on cooperation among DTx developers, hardware developers, and pharmaceutical companies took place at the '1st DTx Asia' held at Novotel Ambassador Hotel in Gangnam-gu, Seoul. From the left, Sohyun Kwon, CEO of InnoCube; Sungji Kang, CEO of Welt; Jongmin Choi, Group Leader at Samsung Electronics. Photo by Chunhee Lee

[Asia Economy Reporter Chunhee Lee] Digital therapeutics (DTx) are a type of 'Software as a Medical Device (SaMD).' To properly operate the software, collaboration with hardware developers and existing medical market participants such as pharmaceutical companies is essential from the perspective of medical devices. A forum was held where these three market participants?DTx developers, hardware developers, and pharmaceutical companies?gathered to discuss the possibilities of such collaboration.

On the afternoon of the 8th, at the Novotel Ambassador Hotel in Gangnam-gu, Seoul, the '1st DTx Asia' conference hosted a discussion under the theme "Bridging the Gap Between Tech and DTx: A Look into How DTx are Partnering With Pharmaceutical Companies in Asia." The panel included Kang Sung-ji, CEO of Welt representing the DTx industry; Choi Jong-min, Head of Samsung Electronics Health Hardware Research & Development (R&D) Group representing the hardware development industry; and Kwon So-hyun, CEO of InnoCube (former Executive Director of C&BD at Handok) representing the pharmaceutical industry.

All of them have ties through Welt. Welt was born from Samsung Electronics' in-house venture program 'C-Lab.' Group Head Choi worked with CEO Kang during Kang’s tenure at Samsung Electronics on Samsung Health application-related projects. CEO Kwon, who was in charge of business development (BD) at Handok, led a 3 billion KRW investment in Welt by Handok last year.

Reflecting on that time, Group Head Choi said, "The need for medical business was raised within Samsung Electronics, which led to the start of related projects. However, it was an early stage without the necessary infrastructure, and while some utilized it well, it was only a half success at that time." CEO Kang analyzed that smartphones and DTx were not fully integrated. He said, "Samsung Electronics focuses on making smartphones for everyone, but there is no universal or single demand in the medical market." Therefore, they created a separate in-house venture to start generating data that could be handled in actual clinical settings.

Samsung Electronics 'Galaxy Watch' ECG measurement function screen (Photo by Samsung Electronics)

The intersection between DTx and hardware lies in biomarkers. Group Head Choi explained, "Various signals can be measured using sensors embedded in wrist-worn watches," adding, "Using software development kits (SDKs), various data can be transmitted quickly." This allows for the identification of various biomarkers necessary for DTx use.

He also emphasized that areas currently unmeasured due to medical regulations could be more actively utilized once regulations are lifted. Group Head Choi cited the example of electrocardiogram (ECG) sensors. He said, "A few years ago, no one imagined the potential of ECG, but now it has become commonplace," and added, "DTx companies like Welt will be able to expand what they want within an ecosystem based on Samsung Electronics' hardware."

CEO Kwon recalled the investment as a process of pharmaceutical companies seeking new growth opportunities. He said, "We considered digital healthcare an innovative approach and had been interested since around 2014 at Handok," adding, "There were areas like AI image diagnostic analysis, but globally, overseas DTx companies such as Pear Therapeutics and Akili Interactive were progressing through clinical trials to pass regulations." This led to considering investments in DTx companies within digital healthcare, resulting in the investment in Welt.

CEO Kwon emphasized that DTx clearly has synergy with the traditional pharmaceutical business domain. He said, "DTx is a new innovative treatment option for patients," and stressed, "It is generally difficult to track side effects of drugs, but if continuous monitoring and intervention can be conducted through DTx, it can provide new support areas for existing treatments, such as tracking side effects."