Prescription digital therapeutics firm Pear Therapeutics is exploring “strategic options,” together with a attainable firm sale, merger or acquisition.
In a press launch, the corporate stated 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 might additionally search extra financing.
With no transaction, Pear stated it might have to reorganize, liquidate or pursue different kinds 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 will be no assurance that this course of will end result within the firm pursuing a transaction or that any transaction, if pursued, can be accomplished on enticing phrases,” the corporate stated in a press assertion.
THE LARGER TREND
Pear gives prescription digital therapeutics for substance use dysfunction, opioid use dysfunction and insomnia. Pear obtained FDA De Novo clearance for its substance use product, reSET, in 2017.
The corporate hit the general public markets in late 2021 by way of a merger with a particular function acquisition firm, then a preferred technique of public exit for digital well being companies.
However the firm’s inventory value 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 stated it had authorized extra layoffs, affecting 59 workers, or about 22% of Pear’s workforce on the finish of September. It had beforehand laid off 25 staff over the summer time.
Pear’s former chief business officer, Julia Strandberg, additionally just lately left the corporate to move up well being tech big Philips’ related care enterprise.