Digital health firm XRHealth hits the M&A trial again

XRHealth has made its second acquisition in the space of a few months, buying digital therapeutics (DTx) company RealizedCare to build out its presence in the use of virtual reality (VR) and related technologies.

Boston, US-based XRHealth said that adding RealizedCare to its business has added "new evidence-based methods to manage chronic pain, stress, and anxiety," as well as a digitally-powered care management triage platform tool developed by the company.

Elizabethtown, Kentucky-based RealizedCare has developed artificial intelligence-powered DTx for chronic pain and mental health conditions that use cognitive behavioural therapy (CBT) and biopsychosocial protocols, working with Oxford University, Massachusetts General Hospital, Sumitomo Pharma, and Confluent Health.

The triage tool assesses patient needs, guides them to the most effective digital interventions, and escalates cases to clinicians when necessary.

The takeover of RealizedCare comes after XRHealth merged with Netherlands digital health company NeuroReality last November, bringing their VR, mixed reality (MR), and extended reality (XR) platforms under one roof.

That deal included NeuroReality's flagship product Koji's Quest, a VR game designed to help people who need rehabilitation after conditions like stroke, traumatic brain injury, long COVID, and to stave off the effects of advancing age.

Meanwhile, in 2023, XRHealth also merged with Spanish company Amelia Virtual Care, a specialist in VR therapies for mental health applications.

"With the integration of RealizedCare's groundbreaking triage tool and therapeutic solutions, we are building the world's largest XR healthcare platform," commented Eran Orr, XRHealth's chief executive.

"By merging the power of mixed reality, extended reality, and AI-driven insights, we are forging a new era of immersive, value-based care [that can] reshape the way patients experience and engage with their own healing journey," he added.

Following the takeover, RealizedCare's founder and CEO Aaron Gani – who also serves as the chairman of the board of industry organisation the Digital Therapeutics Alliance (DTA) and was previously chief technology officer at insurance company Humana – has been appointed as general manager of XRHealth US.

Market research company IMARC has estimated that the global market for VR/XR technologies in healthcare was worth $4.5 billion in 2022, but will grow rapidly to reach more than $20 billion in 2028, driven by use of the technologies in gamified physical therapy, immersive therapies for mental health, training for healthcare professionals, and telemedicine delivery.