Prescription Digital Therapy Society Therapeutic pear explores “strategic alternatives”, including a possible sale, merger or acquisition of the company.
In a press release, the company said it had hired a financial adviser to review stocks that would “maximize shareholder value.” This includes a potential sale, merger and acquisition, asset divestiture, license or other strategic transactions. It may also request additional funding.
Without a transaction, Pear said it may need to reorganize, liquidate or pursue other types of restructuring. In a filing with the Securities and Exchange CommissionPear withdrew its revenue and operating guidance for fiscal 2022 and 2023. It also will not host a fourth-quarter and full-year earnings call.
“There is no fixed timeline for this process and there can be no assurance that this process will result in the Company pursuing a transaction or that any transaction, if pursued, will be completed on attractive terms,” he said. the company said in a press release.
THE GREAT TREND
Pear offers digital prescription therapies for substance use disorders, opioid use disorders and insomnia. Pear has received de novo clearance from the FDA for its substance use product, reSET, in 2017.
The company hit public markets end of 2021 through a merger with a special purpose acquisition company, then a popular method of public exit for digital health companies.
But the company’s share price has generally declined since then, and a October Rock Health Report noted that publicly traded digital therapy players underperformed compared to other digital health companies.
In the third quarter, Pear reported revenue of $4.1 million and a Net loss of $30.7 million. The company also said it had approved other layoffs, affecting 59 employees, or about 22% of Pear’s workforce at the end of September. It had previously laid off 25 workers over the summer.
former commercial director of Pear, Julia Strandbergalso recently left the company to lead the connected care business of health tech giant Philips.