Higher Therapeutics, a prescription digital therapeutics platform, has laid off roughly 35% of its workforce due to a price discount initiative, in accordance with a U.S. Securities and Change Fee submitting on Friday.
The corporate offers cognitive behavioral remedy to deal with diabetes, hypertension and different cardiometabolic illnesses.
Per the SEC submitting, the corporate expects to incur roughly $400,000 in cash-related bills attributable to severance and advantages in Q2 2023. CEO Frank Karbe emailed workers on Thursday, notifying them of the workforce discount.
“We’re additionally implementing different value financial savings measures to additional prolong our monetary runway so we are able to attain vital milestones over the following few months, together with potential FDA advertising and marketing authorization and subsequent business launch of BT-001 in Sort 2 diabetes,” Karbe mentioned within the e mail.
THE LARGER TREND
Higher Therapeutics was among the many many digital well being platforms in 2021 that introduced plans to go public by merging with a particular objective acquisition firm. It debuted at a inventory worth round $10 per share, however the worth has since dropped to round $0.85.
Since then, the corporate has struggled to achieve profitability. In its most up-to-date submitting for Q3 2022, the corporate reported a internet lack of practically $31 million for the primary 9 months of the 12 months, and its collected deficit reached $102.7 million. It famous that beneath its present working plan, it held adequate capital to fund its operations by Q1 2023.
Different corporations within the prescription digital therapeutics area are Akili Interactive, maker of a video game-like digital therapeutic for youngsters with ADHD, and Pear Therapeutics, maker of prescription digital therapeutics to assist deal with substance abuse dysfunction, opioid use dysfunction and insomnia.
Akili went public by a SPAC in August, however in January of this 12 months introduced plans to let go of 30% of its workers because it sought a path to profitability.
Pear started buying and selling on Nasdaq in 2021 with a SPAC. Earlier this month, the corporate introduced it is exploring “strategic options,” together with a potential firm sale, merger or acquisition. With no transaction, the corporate mentioned it might must reorganize, liquidate or pursue different types of restructuring.
Stephanie Chia, Russ Hinz and Susan Tolin will supply extra element within the HIMSS23 session “Fairness on Chicago’s South Facet: Related Care Expertise.” It’s scheduled for Wednesday, April 19 at 1 p.m. – 2 p.m. CT on the South Constructing, Degree 1, room S103.