Higher Therapeutics, a prescription digital therapeutics platform, has laid off roughly 35% of its workforce due to a price discount initiative, in response to a U.S. Securities and Alternate Fee submitting on Friday.
The corporate supplies cognitive behavioral remedy to deal with diabetes, hypertension and different cardiometabolic ailments.
Per the SEC submitting, the corporate expects to incur roughly $400,000 in cash-related bills resulting from severance and advantages in Q2 2023. CEO Frank Karbe emailed staff on Thursday, notifying them of the workforce discount.
„We’re additionally implementing different value financial savings measures to additional lengthen our monetary runway so we will attain vital milestones over the following few months, together with potential FDA advertising and marketing authorization and subsequent industrial launch of BT-001 in Kind 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 introduced plans to go public by merging with a particular goal acquisition firm. It debuted at a inventory worth round $10 per share, however the worth has since dropped to round $0.85.
Since then, the corporate has struggled to achieve profitability. In its most up-to-date submitting for Q3 2022, the corporate reported a web lack of practically $31 million for the primary 9 months of the yr, and its amassed deficit reached $102.7 million. It famous that beneath its present working plan, it held enough capital to fund its operations by means of Q1 2023.
Different corporations within the prescription digital therapeutics house are Akili Interactive, maker of a video game-like digital therapeutic for kids 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 means of a SPAC in August, however in January of this yr introduced plans to let go of 30% of its workers because it sought a path to profitability.
Pear started buying and selling on Nasdaq in 2021 with a SPAC. Earlier this month, the corporate introduced it is exploring „strategic options,“ together with a attainable firm sale, merger or acquisition. With no transaction, the corporate stated it might have to reorganize, liquidate or pursue different types of restructuring.
Stephanie Chia, Russ Hinz and Susan Tolin will provide extra element within the HIMSS23 session „Fairness on Chicago’s South Facet: Related Care Know-how.“ It’s scheduled for Wednesday, April 19 at 1 p.m. – 2 p.m. CT on the South Constructing, Stage 1, room S103.
