Findings
Digital endpoints must not only support regulatory approval but also provide evidence that meets payer expectations for reimbursement and value-based care. The lack of early engagement with payers and health technology assessment (HTA) agencies is a key barrier to the adoption of digital clinical measures. Digital measures can enhance value-based care models by capturing patient-centered outcomes, reducing healthcare costs, and improving early disease detection. The scalability and generalizability of digital endpoints remain challenges, particularly for diverse populations and real-world healthcare settings. Technical and systematic barriers—such as data heterogeneity, stakeholder knowledge gaps, and inconsistent regulatory-payer alignment—are slowing the adoption of digital endpoint data for reimbursement decisions.

Recommendations
Pharma and medical product developers should engage early with payers and regulators to ensure digital endpoints align with reimbursement expectations. Payers and HTA bodies should establish clear evidence thresholds for digital endpoint validation, ensuring consistency in market access decisions. Digital endpoints should be validated against health-related quality of life (HRQoL) measures and patient-reported outcomes (PROs) to demonstrate clinical relevance. Real-world evidence (RWE) should be incorporated into clinical trials alongside digital endpoints to strengthen reimbursement applications. Stakeholders should prioritize scalable, patient-centered digital measures that capture disease progression over time and across different care settings.

Regulatory Considerations
Integrated Evidence Plans (IEPs) should be developed early to align digital endpoint evidence with regulatory and payer requirements. Digital endpoints should be assessed through multi-stakeholder collaboration, ensuring validation across pharmaceutical, regulatory, and reimbursement frameworks. Payers and regulators should work together to create aligned pathways for digital measure acceptance, reducing delays in market access. Data security, privacy, and interoperability must be addressed to support regulatory approval and patient trust in digital health solutions. The industry should leverage international regulatory-payer collaboration models, such as the HTA-EMA partnership and the FDA Payor Communication Task Force, to accelerate global digital endpoint adoption.

Findings
Diverse Pathways to Market Exist: The case studies demonstrate there is no single "right" way to approach the FDA; successful strategies are highly varied and include De Novo requests, 510(k) clearances, and leveraging established pathways for new indications.
Early FDA Engagement is Crucial: A consistent theme across the successful case studies is the value of engaging with the FDA early and often. This collaborative approach helps de-risk the development process, clarify evidentiary requirements, and build trust.
"Drug-like" Evidence Can Be a Differentiator: For novel software-based interventions, particularly digital therapeutics, generating a robust body of evidence similar to that of a pharmaceutical (i.e., randomized controlled trials) is a key strategy for gaining regulatory and commercial success.
Platform-Based Approaches are Emerging: Companies are finding success by moving from single-product solutions to integrated platforms that can monitor multiple health aspects, which requires a more holistic regulatory strategy.

Recommendations
Leverage Pre-Submission (Pre-Sub) Meetings: Sponsors are strongly encouraged to use the Q-Submission program to gain valuable, early feedback from the FDA on their validation plans and overall regulatory strategy.
Build a Multi-faceted Commercialization Plan: Regulatory clearance is only one step. The case studies recommend developing a comprehensive strategy that considers market access, reimbursement, and payer engagement from the outset.
Address Underserved Markets: The examples highlight opportunities for innovation in underserved areas, such as pediatrics and behavioral health, where DHTs can fill significant gaps in care.
Innovate on Evidence Generation: Sponsors should be prepared to innovate not just in their technology, but also in their approach to clinical evidence, tailoring their trial designs to best demonstrate the unique value of their digital product.

Regulatory Considerations
Understand the Risk Classification: The regulatory pathway for a DHT is determined by its intended use and associated risk level. Sponsors must correctly classify their device to determine if a 510(k), De Novo, or other pathway is appropriate.
AI/ML Devices Have Unique Needs: For products incorporating artificial intelligence or machine learning, sponsors must address specific regulatory considerations, such as predetermined change control plans (PCCPs), to manage algorithm updates post-market.
Interoperability is a Key Factor: For devices intended to be part of a connected health ecosystem (e.g., automated insulin dosing systems), demonstrating interoperability and cybersecurity is a critical component of the regulatory submission.

Findings
Regulatory inconsistencies across different FDA divisions and international jurisdictions create inefficiencies in the approval process for digital health products.
Lack of alignment between regulatory approval and payer reimbursement requirements poses a significant barrier to commercialization and widespread adoption of digital health innovations.
There are limited regulatory pathways for novel digital health products, including AI-enabled solutions, requiring new frameworks to address iterative software development and real-world data integration.
Existing health technology assessment (HTA) models do not fully accommodate digital health technologies, limiting their inclusion in reimbursement decisions.
Industry stakeholders emphasize the need for clearer guidelines on cloud-based infrastructure, third-party AI model validation, and digital health interoperability.

Recommendations
FDA and international regulatory bodies should improve coordination to establish standardized approval processes and consistent clinical evidence requirements.
New regulatory pathways should be introduced for AI-driven and software-based digital health products, considering their unique lifecycle and iterative development models.
Greater transparency and communication between FDA divisions should be established to ensure consistent decision-making and regulatory interpretations across centers.
Policymakers should prioritize payer alignment strategies, incorporating real-world evidence (RWE) to streamline reimbursement and market access processes.
The digital health industry should collaborate with regulators to create standardized best practices for AI validation, cloud security, and digital biomarker evaluation.

Regulatory Considerations
FDA should clarify the evidentiary standards for AI-enabled medical devices and establish predefined change control plans for software updates.
Digital health products should adhere to globally recognized standards such as HL7 for interoperability and ISO regulations for data security.
Market access pathways must integrate pricing and reimbursement considerations to facilitate the commercial viability of digital health technologies.
The use of real-world data (RWD) should be expanded in regulatory decision-making, supporting the approval and post-market surveillance of digital health innovations.
Regulatory frameworks should be updated to accommodate cloud-based health platforms, addressing issues such as data privacy, operational security, and compliance with HIPAA and GDPR.

Findings
Regulatory inconsistencies across FDA divisions create uncertainty and inefficiencies in the approval process for digital health products.
Misalignment between FDA regulatory requirements and payer expectations hinders the commercialization and adoption of digital health innovations.
The absence of clear alternative regulatory pathways for novel digital health products discourages investment and innovation.
The lack of standardized regulatory frameworks for AI-driven healthcare technologies, including large language models (LLMs), poses challenges for industry adoption.
Limited international harmonization in digital health regulation makes it difficult for companies to scale innovations globally.

Recommendations
FDA should improve communication and coordination across divisions to ensure consistent regulatory interpretations and processes.
Regulatory pathways for novel digital health products should be modernized, including the introduction of alternative approval mechanisms tailored to iterative software development and AI-enabled devices.
A regulatory framework for third-party large language models (LLMs) should be developed to support their integration into digital health applications.
Greater alignment between FDA and payer decision-makers is needed to streamline market access and ensure reimbursement for digital health products.
International regulatory harmonization efforts should be expanded to facilitate global adoption of digital health technologies.

Regulatory Considerations
The FDA should clarify and refine regulatory requirements for AI-driven digital health products, including predefined change control plans for software updates.
Cloud-based health platforms require clear regulatory guidance on security, data ownership, and compliance with HIPAA and international privacy laws.
Real-world evidence (RWE) should be incorporated into regulatory decision-making to facilitate faster approvals and post-market surveillance of digital health products.
Standardized regulatory frameworks for digital biomarkers and digital drug development tools (DDDTs) should be developed to support clinical research applications.
Policymakers should collaborate with industry stakeholders to establish education and training programs on digital health innovation and regulatory science.

Findings
Digital endpoints must not only support regulatory approval but also provide evidence that meets payer expectations for reimbursement and value-based care.
The lack of early engagement with payers and health technology assessment (HTA) agencies is a key barrier to the adoption of digital clinical measures.
Digital measures can enhance value-based care models by capturing patient-centered outcomes, reducing healthcare costs, and improving early disease detection.
The scalability and generalizability of digital endpoints remain challenges, particularly for diverse populations and real-world healthcare settings.
Technical and systematic barriers—such as data heterogeneity, stakeholder knowledge gaps, and inconsistent regulatory-payer alignment—are slowing the adoption of digital endpoint data for reimbursement decisions.

Recommendations
Pharma and medical product developers should engage early with payers and regulators to ensure digital endpoints align with reimbursement expectations.
Payers and HTA bodies should establish clear evidence thresholds for digital endpoint validation, ensuring consistency in market access decisions.
Digital endpoints should be validated against health-related quality of life (HRQoL) measures and patient-reported outcomes (PROs) to demonstrate clinical relevance.
Real-world evidence (RWE) should be incorporated into clinical trials alongside digital endpoints to strengthen reimbursement applications.
Stakeholders should prioritize scalable, patient-centered digital measures that capture disease progression over time and across different care settings.

Regulatory Considerations
Integrated Evidence Plans (IEPs) should be developed early to align digital endpoint evidence with regulatory and payer requirements.
Digital endpoints should be assessed through multi-stakeholder collaboration, ensuring validation across pharmaceutical, regulatory, and reimbursement frameworks.
Payers and regulators should work together to create aligned pathways for digital measure acceptance, reducing delays in market access.
Data security, privacy, and interoperability must be addressed to support regulatory approval and patient trust in digital health solutions.
The industry should leverage international regulatory-payer collaboration models, such as the HTA-EMA partnership and the FDA Payor Communication Task Force, to accelerate global digital endpoint adoption.

Findings
Regulation exists to ensure the safety and effectiveness of digital health products and to protect the public from potential risks. Engaging with the FDA throughout product development, even though it may seem burdensome, offers valuable benefits such as shared understanding of requirements, faster outcomes, enhanced efficiency in the review process, and built trust with regulators and the public. Working with the FDA is crucial for understanding a device's risk classification and applicable regulatory requirements.

Recommendations
Developers should follow a three-step approach for successful interaction:
EARLY: Start interacting with the agency as early as possible in development, ensuring the intended use and some basic product functionalities are defined.
OFTEN: Maintain communication, especially if new product features, design changes, or changes to how the product will be used occur, to ensure the FDA's advice remains accurate.
TRANSPARENT: Be honest and upfront about the product, evidence, testing plans, and data.
For both "non-written" (meetings) and "written" communications, best practices include:
Preparation: Define the purpose, have specific goals and questions, and prepare a well-planned meeting package (including supporting documentation and data) in advance.
Format and Tone: Select the right type of interaction for the goal, use a professional tone, and communicate clearly, concisely, and with proper formatting.
Follow-up: Respond to all FDA requests promptly and accurately, as delays can result in regulatory action.

Regulatory Considerations
Manufacturers must be familiar with and in compliance with relevant FDA guidance and regulations. Developers should present their argument for a product's regulatory category but must understand that the FDA determines the final regulatory status and obligations. It is critical to avoid providing false or misleading claims or withholding important information, as failure to cooperate or address concerns raised by the FDA can lead to penalties or failure to clear/approve the product for marketing. All communications may be subject to Freedom of Information requests and could become public

Findings
Clinical trials often have unmet measurement needs, where traditional endpoints may not adequately characterize disease progression, treatment response, or new disease phenotypes.
Traditional trial designs can create a high patient burden, which can negatively impact the adoption of new measures by both clinicians and patients.
Clinical trials face significant operational challenges, including the risk of disruption, slow enrollment, poor medication adherence, and difficulty making early go/no-go decisions.
There is a need to improve the predictability rates for advancing new products from early-phase trials to pivotal trials.

Recommendations
Select digital measures to address specific unmet needs, such as to increase sensitivity in detecting disease worsening, characterize treatment response in subpopulations, or identify new disease phenotypes.
Prioritize digital measures that are well-received by clinicians and patients by demonstrating lower patient burden and higher patient relevance.
Deploy digital measures to improve trial efficiency and speed by reducing dependence on clinic visits, enabling earlier go/no-go decisions with higher resolution data, or improving medication adherence.
Use digital measures in early-phase trials to improve the probability of success for advancing new products to pivotal trials.
Consider digital measures that provide remote, continuous physiological insight to enable better oversight and remote management of trial participants.

Regulatory Considerations
When selecting a digital endpoint, a key consideration is whether the measure will increase the likelihood of regulatory approval or support a broader label claim.
A digital measure can strengthen a regulatory submission by generating more complete and patient-centric information that demonstrates the benefit of a new therapy.