Pear Therapeutics at risk without ‘strategic alternatives’

Pear Therapeutics said Friday that it is exploring “strategic alternatives” and may need to restructure or fold if its efforts fail.

The digital therapy firm is seeking the possibility of a sale, merger, acquisition, asset divestment, licensing agreement or other strategic transactions, or additional funding, the company said in a filing. Friday to the Securities and Exchange Commission. Without outside financial help, Pear said it may have to liquidate or restructure.

A spokesperson for the public company declined to comment.

In the same SEC filing, Pear Therapeutics withdrew its operating and revenue guidance for fiscal years 2022 and 2023. The company said it will not hold conference calls and webcasts of its fourth-quarter and full-year 2022 earnings. , which has not yet been scheduled.

In a regulatory filing last month, the company said Chief Commercial Officer Julie Strandberg would leave the company at the end of March.

Pear posted a loss of $30.7 million or $0.22 per share for the third quarter of 2022 and disclosed that it laid off 22% or 59 of its employees at the end of the quarter. At the beginning of the third quarter, the company laid off 25 more employees.

Pear Therapeutics goes public in December 2021 in a $1.6 billion deal with a special-purpose acquirer Thimble Point Acquisition Corp. Its share price has risen from a peak trading of $5.22 a share to a Friday morning value of $0.49 a share.

Pear, founded in 2013, develops software applications that must be prescribed by clinicians and target opioid use disorder, chronic insomnia, and substance use.

Health insurance companies have been slow to cover these tools due to concerns about liability, lack of clinical evidence, and the Food and Drug Administration’s slow approval. Pear has tried to convince commercial insurers to cover its digital therapies, with some success. Fifteen Blue Cross Blue Shield plans have added Pear products to their commercial formulary.

Pear said it is working with investment bank MTS Health Partners to evaluate alternatives.

This story first appeared in Digital Health Business & Technology.


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