Editor’s observe: This story has been up to date with further info from a submitting with the Securities and Change Fee.
Pear Therapeutics, maker of prescription digital therapeutics, introduced at present 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 out there money to fund its operations and prices post-petition.
The Boston-based firm’s CEO Corey McCann referenced the submitting on LinkedIn, stating, “At the moment is a troublesome day for Pear Therapeutics. We introduced that Pear voluntarily filed for Chapter 11 and can search to promote belongings by a gross sales course of. We additionally introduced a discount in drive, together with me. That is actually not the result I envisioned once I based Pear in 2013.”
In a submitting with the Securities and Change Fee, Pear stated it will lay off roughly 170 workers, practically its complete workforce. The corporate would keep a transition crew of about 15 workers to proceed operations in reference to Chapter 11.
McCann stepped down as the corporate’s CEO and president. Based on the submitting, he’ll proceed to function a board member and supply consulting companies by the deliberate sale course of. Christopher D.T. Guiffre, Pear’s chief working officer and chief monetary officer, will function the corporate’s govt officer.
By way of LinkedIn, McCann thanked the departing Pear workers and highlighted their accomplishment in bringing among the first prescription digital therapeutics to market. He famous market situations precipitated the corporate and different growth-stage companies to face challenges over the past two years.
“Here is to the way forward for digital medication that we have labored so exhausting to create,” McCann stated.
THE LARGER TREND
Final month, Pear introduced it was exploring “strategic alternate options,” together with a attainable 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 no transaction, Pear stated the corporate would wish to reorganize, liquidate or pursue different kinds of restructuring. In a submitting with the Securities and Change Fee, 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 proof against the various layoffs seen all through the digital well being sector. In November, Pear stated it will lower its workforce by about 59 workers, or round 22% of the corporate. In July, it let go of roughly 25 workers, 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 Division of Well being Providers, Spero Well being, and the California Division of Healthcare Providers. The corporate additionally introduced plans to supply its prescription digital therapeutics by way of telehealth suppliers.
Dr. Cecil Lynch provides extra particulars through 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, Degree 4, room S406 A.