Digital therapeutics company Pear Therapeutics has made cuts across nearly all of its business areas, a move that buys the company time as it works to increase revenue from its few commercialized products.
The company restructuring will save $28 million over the next 18 months, Pear said in a report. Regulatory filing. Cost reduction is focused on the company’s pipeline candidates, discovery programs and business development. Pear’s business efforts survived.The company currently sells three digital products, two for addiction and one for chronic insomnia. These software applications are intended to be used as therapy, although they may be used with medication or therapy.
Boston-based Pear said the restructuring would cut 9% of its workforce, or about 25 employees. The company expects to make a one-time payment of $900,000, mostly including severance. The fee will be recorded in the third quarter of this year. The effect of cost-saving moves should become more pronounced starting in the fourth quarter, BTIG analyst Marie Thibault wrote in a research note to investors.
“Given the challenging macroeconomic environment, we are not entirely surprised that Pear is taking steps to preserve cash and expand its cash pipeline, and believe it is prudent for management to prioritize business efforts,” Thibault said.
Pear’s three commercialized digital therapeutics are prescription products.published in it First Quarter 2022 Financial Results, the company reported more than 9,200 total prescriptions for all three products. These products accounted for $2.7 million of product revenue in the quarter. Pear makes money by entering into agreements with health care providers and payers, as well as state and local governments. The company has been trying to boost revenue by increasing the number of “insured life,” meaning the number of people entitled to benefits under an insurance plan.
According to its financial statements, Pear ended the first quarter of this year with $89.4 million in cash.when pears close Merger transactions in which the company went public late last yearthe transaction injects the company about $175 million.
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