Editor’s be aware: This story has been up to date with extra info on Pear’s monetary state.
Based on the courtroom submitting, Pear’s belongings had been break up between 4 bidders: Digital therapeutics firm Click on Therapeutics, Harvest BIO, sleep tech firm Nox Well being Group and well being know-how firm Welt.
The most important bid of the group got here from Nox Well being, which will acquire Pear’s belongings associated to Somryst, a prescription digital therapeutic that makes use of cognitive behavioral remedy for insomnia to coach the mind and physique to sleep. Nox pays $3.9 million for the belongings.
Harvest Bio was the profitable bidder of Pear’s Invention Science Fund (ISF) licenses and patents in addition to its belongings associated to schizophrenia, a number of sclerosis and melancholy, main depressive dysfunction and different pipeline belongings. Harvest additionally efficiently bought Pear’s company logos, PearConnect, reSET and reSET-O belongings. Harvest bought the belongings for an combination worth of $2.03 million.
Click on Therapeutics bid $70,000 for all Pear’s platform patents, excluding these associated to the ISF belongings, and Welt agreed to buy Pear’s migraine-related belongings for $50,000.
THE LARGER TREND
The corporate hit the general public markets in late 2021 by a merger with a particular objective acquisition firm, then a well-liked methodology of public exit for digital well being corporations. However the firm’s inventory worth has usually declined since then.
In quarter three of 2022, Pear reported $4.1 million in income and a $30.7 million internet loss. The corporate additionally mentioned it had authorised extra layoffs, affecting 59 staff, or about 22% of Pear’s workforce on the finish of September. It had beforehand laid off 25 staff over the summer season.
In March, Pear introduced it was exploring “strategic options,” together with a potential firm sale, merger or acquisition.
In a submitting with the Securities and Trade Fee, Pear withdrew its income and working steerage for fiscal 2022 and 2023 and introduced it would not maintain a fourth quarter and full-year earnings name.
Final month, Pear filed for Chapter 11 chapter and introduced it was looking for a sale of its enterprise or belongings however would proceed its scaled-down operations throughout Chapter 11 because it sought a sale, and Pear would use its accessible money to fund its operations and prices post-petition.
The Boston-based firm’s CEO Corey McCann referenced the submitting on LinkedIn, stating, “At present is a troublesome day for Pear Therapeutics. We introduced that Pear voluntarily filed for Chapter 11 and can search to promote belongings by a gross sales course of. We additionally introduced a discount in power, together with me. That is actually not the end result I envisioned once I based Pear in 2013.”