Editor’s observe: This story has been up to date with extra data from a submitting with the Securities and Trade Fee.
Pear Therapeutics, maker of prescription digital therapeutics, introduced right this moment that it has filed for Chapter 11 chapter and is looking for a sale of its enterprise or belongings.
The corporate will proceed its scaled-down operations throughout Chapter 11 because it seeks a sale, and Pear will use its accessible money to fund its operations and prices post-petition.
The Boston-based firm’s CEO Corey McCann referenced the filing on LinkedIn, stating, “As we speak is a troublesome day for Pear Therapeutics. We introduced that Pear voluntarily filed for Chapter 11 and can search to promote belongings by means of a gross sales course of. We additionally introduced a discount in pressure, together with me. That is actually not the result I envisioned after I based Pear in 2013.”
In a submitting with the Securities and Exchange Commission, Pear stated it might lay off roughly 170 workers, practically its whole workforce. The corporate would keep a transition group of about 15 workers to proceed operations in reference to Chapter 11.
McCann stepped down as the corporate’s CEO and president. In response to the submitting, he’ll proceed to function a board member and supply consulting companies by means of the deliberate sale course of. Christopher D.T. Guiffre, Pear’s chief working officer and chief monetary officer, will function the corporate’s government officer.
By way of LinkedIn, McCann thanked the departing Pear workers and highlighted their accomplishment in bringing a number of the first prescription digital therapeutics to market. He famous market circumstances precipitated the corporate and different growth-stage companies to face challenges during the last two years.
“This is to the way forward for digital drugs that we have labored so exhausting to create,” McCann stated.
THE LARGER TREND
Final month, Pear announced it was exploring “strategic alternatives,” together with a potential firm sale, merger or acquisition. It employed a monetary advisor to look into actions that would “maximize shareholder worth,” together with a possible sale, M&A, divestiture of belongings, licensing or different strategic transactions.
With out a transaction, Pear stated the corporate would want to reorganize, liquidate or pursue different sorts of restructuring. In a filing with the Securities and Exchange Commission, Pear withdrew its income and working steerage for fiscal 2022 and 2023. It didn’t maintain a fourth quarter and full-year earnings name.
The publicly-traded firm wasn’t resistant to the numerous layoffs seen all through the digital well being sector. In November, Pear stated it might reduce its workforce by about 59 employees, or round 22% of the corporate. In July, it let go of approximately 25 employees, making up about 9% of its workforce.
Nonetheless, final 12 months the corporate established quite a few partnerships to broaden entry to its reSET and reSET-O choices geared toward treating substance use and opioid use dysfunction, together with collaborating with the Wisconsin Department of Health Services, Spero Health, and the California Division of Healthcare Companies. The corporate additionally introduced plans to supply its prescription digital therapeutics through telehealth providers.
Dr. Cecil Lynch gives extra particulars in the course of the HIMSS23 session “How the Human Genome is Altering Precision Medication.” It’s scheduled for Wednesday, April 19 at 11:30 a.m. – 12:30 p.m. CT at South Constructing, Stage 4, room S406 A.