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 would “maximize shareholder worth.” That features a potential sale, M&A, divestiture of property, licensing or different strategic transactions. It could additionally search further financing.
With out a transaction, Pear mentioned it could have to reorganize, liquidate or pursue different sorts of restructuring. In a submitting with the Securities and Change Fee, Pear withdrew its income and working steering for fiscal 2022 and 2023. It additionally will not maintain a fourth quarter and full yr earnings name.
“There isn’t a set timetable for this course of and there could be no assurance that this course of will end result within the firm pursuing a transaction or that any transaction, if pursued, will likely be accomplished on enticing phrases,” the corporate mentioned in a press assertion.
THE LARGER TREND
Pear presents prescription digital therapeutics for substance use dysfunction, opioid use dysfunction and insomnia. Pear acquired FDA De Novo clearance for its substance use product, reSET, in 2017.
The corporate hit the general public markets in late 2021 by a merger with a particular function acquisition firm, then a well-liked methodology of public exit for digital well being corporations.
However the firm’s inventory worth has typically declined since then, and an October Rock Well being report famous publicly traded digital therapeutics gamers have underperformed in contrast with different digital well being firms.
Within the third quarter, Pear reported $4.1 million in income and a $30.7 million internet loss. The corporate additionally mentioned it had authorised extra layoffs, affecting 59 staff, or about 22% of Pear’s workforce on the finish of September. It had beforehand laid off 25 employees over the summer season.
Pear’s former chief business officer, Julia Strandberg, additionally lately left the corporate to move up well being tech large Philips’ related care enterprise.