Otsuka signs on Jolly Good for $43M mental health VR deal (Fierce Biotech):
The duo will build out software—hosted on Jolly Good’s VR goggles and connected tablet devices, and backed by Otsuka’s expertise in developing neurological therapeutics—that takes a social skills training (SST) approach to treating mental illness. SST is a behavioral therapy in which patients with anxiety, mood and personality disorders, among other conditions, are taught on a step-by-step basis how to navigate specific social interactions.
The combination of SST and a pharmaceutical regimen has been proven in studies to reduce the recurrence of mental disorders, the companies said. Their first jointly developed program will be directed toward schizophrenia patients, and they’re predicting that the immersive nature of Jolly Good’s VR will make the SST therapy more engaging and effective than standard methods.
Under the terms of the deal, Otsuka will offer 300 million Japanese yen, or about $2.6 million, in upfront payments to Jolly Good. As the VR program accelerates, the Tokyo-based pharma will reimburse the tech developer—which is also based in Tokyo—for the costs of development and marketing to healthcare facilities, while also doling out royalties based on sales of the resulting product.
Altogether, the total potential value of the deal is 5 billion yen, or about $43.6 million U.S.
With the aim of building a regional cooperative mental health platform, Jolly Good Inc. (Chuo-ku, Tokyo; CEO: Kensuke Joji) and Otsuka Pharmaceutical Co., Ltd. (Chiyoda-ku, Tokyo; President and Representative Director: Makoto Inoue) have signed an agreement for exclusive product joint development and sales in Japan for a social skill training VR (“SST VR”) business … Jolly Good has already deployed SST VR for developmental disorders at over 200 hospitals, clinics, welfare support centers, and other such facilities across Japan.
News in Context:
- Innovation in COVID times: Otsuka and Click Therapeutics announce fully virtual clinical trial, leveraging Verily’s Project Baseline
- Otsuka Pharma and Click Therapeutics enter partnership poised to transform mental healthcare
- AppliedVR raises $29M to help make virtual reality the standard of care for treating chronic pain