Pear Therapeutics loses 97% of its market capitalization since 2021, explores strategic alternatives

Source: Google Finance

Pear Ther­a­peu­tics explor­ing sale, oth­er ‘strate­gic alter­na­tives’ (Mobi­Health News):

Pre­scrip­tion dig­i­tal ther­a­peu­tics com­pa­ny Pear Ther­a­peu­tics is explor­ing “strate­gic alter­na­tives,” includ­ing a pos­si­ble com­pa­ny sale, merg­er or acquisition.

In a press release, the com­pa­ny said it hired a finan­cial advi­sor to look into actions that could “max­i­mize share­hold­er val­ue.” That includes a poten­tial sale, M&A, divesti­ture of assets, licens­ing or oth­er strate­gic trans­ac­tions. It may also seek addi­tion­al financing.

The com­pa­ny hit the pub­lic mar­kets in late 2021 through a merg­er with a spe­cial pur­pose acqui­si­tion com­pa­ny, then a pop­u­lar method of pub­lic exit for dig­i­tal health firms … In the third quar­ter, Pear report­ed $4.1 mil­lion in rev­enue and a $30.7 mil­lion net loss. The com­pa­ny also said it had approved more 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.

The Announcement:

Pear Ther­a­peu­tics Announces Process Explor­ing Strate­gic Alter­na­tives (press release):

Pear Ther­a­peu­tics, Inc. (Nas­daq: PEAR) (“the Com­pa­ny”), the leader in devel­op­ing and com­mer­cial­iz­ing soft­ware-based med­i­cines called pre­scrip­tion dig­i­tal ther­a­peu­tics (PDTs), today announced that it is engaged in a process to explore strate­gic alter­na­tives to max­i­mize share­hold­er val­ue. The Com­pa­ny has engaged MTS Health Part­ners, L.P. to act as the Company’s exclu­sive finan­cial advi­sor to assist in eval­u­at­ing poten­tial alter­na­tives. MTS Health Part­ners is a lead­ing bou­tique invest­ment bank that pro­vides strate­gic and finan­cial advice to the health­care indus­try … The Com­pa­ny does not expect to dis­close or pro­vide an update con­cern­ing devel­op­ments relat­ed to this process unless or until the Company’s Board of Direc­tors has approved a defin­i­tive course of action or oth­er­wise deter­mines that oth­er dis­clo­sure is nec­es­sary or appropriate.

News in Context:

• Pear Ther­a­peu­tics rais­es $175M and goes pub­lic via SPAC deal
• A call to action: We need the right incen­tives to guide eth­i­cal inno­va­tion in neu­rotech and healthcare
• Novar­tis dis­solves agree­ment to mar­ket Pear Ther­a­peu­tics’ pre­scrip­tion dig­i­tal ther­a­peu­tics for substance/ opi­oid abuse
• Pear Ther­a­peu­tics rais­es $50M to devel­op and mar­ket a port­fo­lio of dig­i­tal ther­a­peu­tics for men­tal health