Interview with Dr. Ashutosh Malhotra, Director, Digital Health Strategy & Partnerships – Europe, Daiichi Sankyo Europe

Pharmaceutical companies have long contributed to healthcare progress through the development and delivery of medicines. But as expectations grow around patient outcomes, personalization, and value-based care, the industry is beginning to explore new ways to support the broader care journey. Digital health, spanning AI-driven insights, digital therapeutics, and remote monitoring, is starting to reshape how pharma interacts with patients, providers, and healthcare systems, even if its role is still evolving.

In a candid conversation with Dr. Ashutosh Malhotra, Director of Digital Health Strategy & Partnerships – Europe at Daiichi Sankyo Europe, we dove into his framework for effective pharma–digital health collaboration: the Five Ps of Partnerships. We also explored the key trends shaping the pharmaceutical industry, particularly in digital health, and discuss whether the pharma digital retail model, seen in markets like the U.S., could expand more broadly and what that shift might mean for companies navigating different regulatory environments.

What makes partnerships work, how to avoid the pilot trap, and why clarity on long-term value is crucial for scale were also unpacked. Finally, Dr. Malhotra offers a look into Daiichi Sankyo’s European digital health strategy, with a focus on patient identification, provider support, and going beyond the pill.

Enjoy the interview!

Research2Guidance: Dr. Malhotra, for those unfamiliar with your background, could you introduce yourself and share what led you to a career in the pharmaceutical industry?

Dr. Ashutosh Malhotra: I’m currently working as Director of Digital Health Strategy and Partnerships at Daiichi Sankyo Europe, where I’ve been for nearly four years. My digital health journey began much earlier, with a background in bioinformatics and a focus on artificial intelligence (AI) and machine learning (ML) in healthcare. Before joining Daiichi Sankyo Europe, I spent seven years in the medical device industry, developing digital health solutions, including launching a remote patient monitoring solution “HeraeusCare” across hospitals in Europe.

My experience in digital health spans research, medical devices, and now pharmaceuticals. Each sector presents unique challenges and perspectives, yet the transformative potential of digital solutions in healthcare has always been a driving force in my work.

Is it easy? No. While digital solutions often scale rapidly in other industries, healthcare is a highly regulated sector, and rightfully so, as it involves people’s well-being. Progress takes time, but we are making steady advancements in the right direction. It is a challenging journey, but a necessary and worthwhile one, bringing us ever closer to a breakthrough moment.

Research2Guidance: That’s a great point, especially given the regulatory challenges. Looking ahead, what key trends do you see shaping the pharmaceutical industry, particularly in digital health?

Dr. Ashutosh Malhotra: Pharmaceutical companies play a role throughout the entire patient journey, from R&D to commercialization. One of the most transformative trends in the industry today is artificial intelligence (AI). While AI has long been used in R&D, particularly for target identification and the discovery of new medicines, the rise of generative AI, such as GPT, is now reshaping other areas, including medical affairs. Unlike traditional AI applications, generative AI has become more accessible and widely understood by laymen, fueling interest in its potential. In medical affairs, technology has potential to be leveraged for tasks such as medical content generation, summarizing complex clinical data, personalizing HCP engagement, and streamlining medical inquiries, ultimately improving efficiency and scientific communication.

However, AI should not be regarded as a universal solution or a remedy for all challenges. In the highly regulated healthcare environment, it is essential to identify targeted, high-impact opportunities where AI can drive early success. Focusing on these strategic applications enables measurable progress, builds confidence in its capabilities, and lays the foundation for broader adoption.

Another significant trend that continues to gain momentum within pharma is digital therapeutics (DTx). While not a one-size-fits-all solution, DTx has proven particularly valuable in areas such as rare diseases, where no pharmacological treatments exist. It also plays a critical role in chronic disease management, mental health, and neurological disorders, either complementing existing therapies or serving as a standalone option when traditional treatments are limited or unavailable. As pharmaceutical companies increasingly integrate DTx into their portfolios, we are seeing new opportunities to enhance patient outcomes, improve adherence, and personalize care.

Digital companions that support patients through digital health programs are gaining importance, while patient identification and diagnostics remain critical focus areas. The pharmaceutical industry must prioritize high-impact opportunities rather than taking an overly broad approach.

Early enthusiasm for digital health often led to an expansive, unfocused mindset. However, success lies in strategic focus – identifying the most valuable areas and allocating resources efficiently. Rather than attempting to “boil the ocean,” companies should concentrate on targeted initiatives that drive meaningful impact.

Research2Guidance: Speaking of patient-centric solutions, do you think the digital retail model in pharma, currently seen in early adopters like Pfizer and Eli Lilly and explored in our “Pharma Digital Retail Model” whitepaper, could become a broader trend for other pharmaceutical companies?

Dr. Ashutosh Malhotra: That’s a very interesting question. There are two key aspects to consider. First, it depends on the market we’re discussing. From a European perspective, this model isn’t currently possible due to strict regulations. However, if those regulations change in the future, it could become feasible.

In the U.S., Lilly and Pfizer have adopted the direct-to-consumer model, leveraging a regulatory environment that allows it. This approach makes sense – if pharma doesn’t enter this space, tech vendors will dominate, as they already have the reach and infrastructure.

Telemedicine is a proven success in digital health, and I personally prefer it for consultations unless an in-person visit is necessary. However, the question is whether pharma is the right player to lead telemedicine solutions. Pharma has faced challenges in scaling these models due to the complexity of engaging with stakeholders outside its typical scope. A partnership approach with tech vendors, as seen in the market, may be a viable path forward.

While pharma may not be ideally positioned to lead telemedicine initiatives alone, the technology remains a valuable component of digital health. As for direct-to-consumer models, they have potential, but their success will depend on effective execution, navigating regulatory challenges, competitive differentiation, and aligning with a long-term strategy that integrates these solutions into broader business objectives.

Research2Guidance: That’s a noteworthy point. In your opinion, what makes a successful partnership between pharma and the digital health vendors or digital health solution providers?

Dr. Ashutosh Malhotra: A successful partnership between pharma and digital health vendors revolves around the “Five P’s.” In healthcare, there are typically three key stakeholders: the patient, the provider (e.g., doctors, nurses), and the payer (who funds the solutions). Now, in a pharma-digital health partnership, the fourth “P” is pharma, and the fifth is the digital health vendor, which I refer to as the partner.

When considering a partnership, it’s crucial to understand what value each party brings to the table. The short-term vs. long-term value is essential. Many times, we see what’s known as “pilotitis,” where companies do pilots with a pharma organization, but they never scale. The problem is that the value for pharma is not properly considered from the start. If you don’t understand what scaling up means to pharma, the partnership won’t progress beyond a pilot phase.

For example, if pharma conducts a pilot in one clinic, it’s not realistic to expect them to scale that pilot to 100 hospitals without clear discussions about the scaling plan from the outset. So, the key is ensuring that both pharma and the partner understand the value for each side, both in the short-term and the long-term.

Here’s an important consideration for digital health vendors: Are you working in a space, in which pharma would typically engage for scaling up? Sometimes, pharma may not be the right partner, especially if the business model is too complex for them to scale. Your digital health solution might be great, but if it doesn’t align with pharma’s capacity or expertise for scaling, the partnership might not work.

The “Five P’s” should guide any partnership. If all five Ps are satisfied, there’s no reason the partnership shouldn’t extend beyond the initial phase.

Research2Guidance: Yes. Many partnerships fail due to a mismatch of expectations or a lack of clear partnership strategies (R2G’s research), which can be an expensive lesson for startups. How has your experience working at the intersection of pharma and digital health shaped your approach to collaboration and innovation?

Dr. Ashutosh Malhotra: Innovation is at the core of pharma, with each medicine representing a new breakthrough, unlike commodity markets that may focus on refining existing models. However, digital health innovation in pharma can be challenging due to stringent regulations and compliance. While ideas from doctors and patients can be valuable, the key question is whether pharma is the right stakeholder to deliver those solutions. Strict boundaries can limit what pharma can bring to market, making it sometimes difficult to turn great digitalization ideas into reality.

Pharma must balance excitement with the realities of working in a regulated space, asking tough questions: Are we the right organization to address these needs? Can we create sustainable value with the solution? It’s not just about the initial hype of innovation, it’s about whether the solution can be brought to market and maintained in the long run. While digital health is promising, pharma can’t address every digitalization challenge. The key is selecting the right focus and executing effectively.

Research2Guidance: Do you believe the pharmaceutical companies can successfully monetize digital health solutions?

Dr. Ashutosh Malhotra: There are two key considerations here. Some reimbursement models, such as those in Germany, are beginning to open up, and digital health solutions could generate modest revenue for pharma. And while digital health solutions hold potential for growth, they are still a small fraction of pharma’s overall revenue stream.

Therefore, the focus should shift from return on investment (ROI) to return on objectives. The question for pharma should not be simply “How much money will a digital asset generate?” but “How does this support broader business goals?” Digital therapeutics, patient companions, and identification tools play a crucial role in enhancing patient engagement, differentiating the market, and achieving strategic objectives such as improving healthcare provider satisfaction, enhancing patient outcomes, and gaining a competitive advantage.

Research2Guidance: With that in mind, what strategies or models do you think will be the most effective for turning digital health initiatives into profitable ventures?

Dr. Ashutosh Malhotra: When we talk about turning digital health into a profitable venture, the reimbursement landscape is definitely a key factor that’s opening up and offering significant backing. But, as I’ve said, reimbursement is just one channel. If you’re looking at it from a digital health company’s perspective, initially, there was a lot of enthusiasm, and everyone wanted to jump on the reimbursement bandwagon. But that’s not the only route.

You could also look at partnering with pharma, where pharma might be the payer. But even in this case, the question remains: What is pharma’s long-term need? Alternatively, you could consider partnerships with hospitals or dedicated payers. This approach could open new pathways for success.

In digital health, it’s crucial to identify your niche and target indication area first. From there, you can determine the most suitable go-to-market model, whether that’s reimbursement, pharma partnerships, or direct-to-consumer. There is no one-size-fits-all solution.

As I mentioned, it’s crucial to identify your “pot” and focus on what’s right for you. For example, if you want butter, you churn milk – churning water in hopes of butter will keep you busy, but nothing will come of it. This is a key consideration.

Ultimately, there’s no universal roadmap for success. The key is to focus on your specific indication area and build your business model around it. Without this focus, you risk expending significant effort without achieving the desired results.

Research2Guidance: Building on that idea of focus, what are the challenges you personally face in your role?

Dr. Ashutosh Malhotra: One major challenge is that we don’t operate in a “United States of Europe.” A solution that works in Germany may not be successful in the UK, Italy, or France in the same form, requiring careful consideration of each market’s unique needs and systems.

Another hurdle is convincing pharma of the value of digital health, as there isn’t yet a ground-breaking success story. For example, generative AI quickly had an “aha” moment, and its value was easily understood by the general public. In contrast, digital health lacks a similar breakthrough, making it more difficult to secure pharma’s full buy-in.

The regulatory landscape for digital health is highly restrictive, with numerous regulations to navigate. Furthermore, pharma’s structure is primarily designed for traditional medicine development, which doesn’t easily align with digital health. This requires the creation of new processes within the pharmaceutical framework, a complex and challenging task. There is also a learning curve to consider. Many in pharma are accustomed to longer development cycles for medicines, yet there is often an expectation for digital health initiatives to progress much more quickly even within a few months. In reality, developing and bringing a comprehensive digital health solution to market from scratch can take three to five years. This misalignment between expectations of speed and the actual development timeline can sometimes impact motivation.

Research2Guidance: What are the main focus areas of your Digital Health strategy in Europe?

Dr. Ashutosh Malhotra: From a strategic perspective, we are focusing on a few key areas. First, we are prioritizing the identification of patients, who we can best serve in our pharmaceutical expertise areas, ensuring that we are reaching the right patients with the right therapies.

Second, we aim to support healthcare providers, providing more information and deeper insights to enhance clarity and confidence when making treatment decisions together with their patients. For example, while medical societies emphasize prescribing the right medicine for the right patient, we face the challenge of helping general HCP’s navigate multiple options to make the best choices. This is crucial for improving patient outcomes.

Third, addressing the “beyond the pill” needs of patients is essential. When patients are prescribed medication, they are often advised to make lifestyle changes. However, we must find effective ways to support these changes. Since there is no one-size-fits-all solution, we need to explore various approaches to assist patients in implementing these changes.

Ultimately, our core objective is to contribute to the enrichment of quality of life around the world and enhance patient health.

While providing medicines is a key part of the solution, we also strive to offer comprehensive support throughout the patient’s journey.

Research2Guidance: In light of these efforts, there is a big trend around preventive care. What are your thoughts?

Dr. Ashutosh Malhotra: Preventive care is a growing market, and pharma must decide whether to play a role or allow tech companies to dominate. Devices like the Apple Watch and Fitbit are already enhancing prevention by helping people maintain their health and identify issues early. Pharma companies should therefore consider how they fit into this space.

While diseases are often inevitable, preventive care can help delay their onset. For example, health issues may arise later in life with better prevention, perhaps at 75 instead of 50. While pharma’s traditional model will remain relevant, the landscape may shift as people stay healthier for longer.

The key concern is whether pharma will act quickly enough or if other players will take the lead. Preventive medicine is gaining momentum, and pharma must decide whether to engage or risk falling behind. Despite years of discussion, a breakthrough example has yet to emerge to accelerate progress in this area.

I remain optimistic about the future of digital health. While healthcare evolves at a slower pace compared to other industries, I am confident that this transformation will occur, even if it takes five to ten years to fully materialize.

Research2Guidance: Thank you very much for this insightful and interesting conversation, Dr. Malhotra. We wish you and the entire Daiichi Sankyo organization continued success in supporting patients, advancing the healthcare ecosystem, and driving meaningful innovation!

About DSPACE

DSPACE is Daiichi Sankyo Europe‘s Digital Innovation Hub. In a world where medical knowledge doubles every 71 days our business model is adapting to these new realities. Personalised medicine, sensor technology and live tracking of medical data offer new opportunities to detect and diagnose medical conditions earlier, support patients more effectively during their treatment journey and develop new therapeutic approaches.

Our goal is to go beyond the health benefits of our medicines, delivering additional value by comprehensively understanding the needs of both patients and healthcare professionals (HCPs) throughout the entire treatment journey. We aim to ensure that our support addresses not only the efficacy of our treatments, but also the broader needs and experiences of those involved in the care process.

Learn more on DSPACE and Daiichi Sankyo Europe.