Prescription digital therapeutics firm Pear Therapeutics is exploring “strategic options,” together with a doable firm sale, merger or acquisition.
In a press launch, the corporate mentioned it employed a monetary advisor to look into actions that might “maximize shareholder worth.” That features a potential sale, M&A, divestiture of belongings, licensing or different strategic transactions. It could additionally search extra financing.
With no transaction, Pear mentioned it might have to reorganize, liquidate or pursue different forms of restructuring. In a filing with the Securities and Exchange Commission, Pear withdrew its income and working steerage for fiscal 2022 and 2023. It additionally will not maintain a fourth quarter and full yr earnings name.
“There is no such thing as a set timetable for this course of and there could be no assurance that this course of will consequence within the firm pursuing a transaction or that any transaction, if pursued, might be accomplished on engaging phrases,” the corporate mentioned in a press assertion.
THE LARGER TREND
Pear gives prescription digital therapeutics for substance use dysfunction, opioid use dysfunction and insomnia. Pear received FDA De Novo clearance for its substance use product, reSET, in 2017.
The corporate hit the public markets in late 2021 via a merger with a particular function acquisition firm, then a preferred technique of public exit for digital well being corporations.
However the firm’s inventory value has generally declined since then, and an October Rock Health report famous publicly traded digital therapeutics gamers have underperformed in contrast with different digital well being corporations.
Within the third quarter, Pear reported $4.1 million in income and a $30.7 million net loss. The corporate additionally mentioned it had accredited extra layoffs, affecting 59 employees, or about 22% of Pear’s workforce on the finish of September. It had beforehand laid off 25 staff over the summer season.
Pear’s former chief industrial officer, Julia Strandberg, additionally just lately left the corporate to move up well being tech big Philips’ related care enterprise.
