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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 gives 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 price financial savings measures to additional prolong our monetary runway so we will attain essential milestones over the following few months, together with potential FDA advertising and marketing authorization and subsequent industrial launch of BT-001 in Sort 2 diabetes,” Karbe stated within the electronic 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 worth 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 yr, and its gathered deficit reached $102.7 million. It famous that underneath its present working plan, it held enough capital to fund its operations by Q1 2023.
Different corporations within the prescription digital therapeutics house 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 yr 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 out a transaction, the corporate stated it might 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 Know-how.” It’s scheduled for Wednesday, April 19 at 1 p.m. – 2 p.m. CT on the South Constructing, Degree 1, room S103.
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