Prescription digital therapeutics firm Higher Therapeutics broadcasts layoffs

Better 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 Trade Fee filing on Friday. 

The corporate supplies cognitive behavioral remedy to handle diabetes, hypertension and different cardiometabolic ailments.

Per the SEC submitting, the corporate expects to incur roughly $400,000 in cash-related bills resulting from 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 lengthen our monetary runway so we are able to attain essential milestones over the subsequent few months, together with potential FDA advertising and marketing authorization and subsequent business launch of BT-001 in Kind 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 announced plans to go public by merging with a particular goal acquisition firm. It debuted at a stock price round $10 per share, however the value has since dropped to round $0.85. 

Since then, the corporate has struggled to succeed in profitability. In its most up-to-date submitting for Q3 2022, the corporate reported a web lack of almost $31 million for the primary 9 months of the 12 months, and its amassed deficit reached $102.7 million. It famous that below its present working plan, it held enough capital to fund its operations by means of Q1 2023. 

Different firms within the prescription digital therapeutics area are Akili Interactive, maker of a video game-like digital therapeutic for kids 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 means of a SPAC in August, however in January of this 12 months introduced plans to let go of 30% of its staff because it sought a path to profitability. 

Pear began trading on Nasdaq in 2021 with a SPAC. Earlier this month, the corporate introduced it is exploring “strategic alternatives,” including a possible company sale, merger or acquisition. With no transaction, the corporate mentioned it could have to 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 Aspect: 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.