Prescription digital therapeutics startup Pear Therapeutics announced an $80 million Series D round this morning headed by SoftBank Vision Fund 2.
The raise included funds from new backers Forth Management, Pilot House, Sarissa Capital, Shanda Group and QUAD Investment Management, as well as from returning investors Temasek, 5AM Ventures, Arboretum Ventures, JAZZ Venture Partners, Novartis, CrimsoNox and EDBI.
WHAT IT DOES
Pear's initial claim to fame was the 2017 De Novo clearance of its substance abuse treatment reSET, which marked the first prescription digital therapeutic to receive the agency's blessing. The time since has seen the clearance and eventual launch of two more prescription digital therapeutics, the latest of which being the fully digital commercial release of Somryst for chronic insomnia. In addition, the company released its schizophrenia therapeutic, Pear-004, on a limited basis back in April.
Alongside the launch of these products and development of several other prescription digital therapeutics listed in its pipeline, the company has lately been working to secure coverage of its treatments. As of late, this has included deals with healthcare organizations, plans and employer groups.
WHAT IT'S FOR
The company wrote in its announcement that it will be working to secure reimbursement coverage for its products that are already on the market, and to continue development for those yet to come.
“This oversubscribed round of funding will allow us to continue to invest in the launches of our three commercial products to accelerate revenue growth, which we intend to reinvest in our robust pipeline and platform,” Dr. Corey McCann, president and CEO of Pear, said in a statement.
Prescription digital therapeutics have been on the upshot this year. Alongside Pear's Somryst, the last 12 months included three De Novo clearances for prescription digital therapeutics: Akili's video game-like ADHD-symptom treatment EndeavorRx; NightWare's smartwatch and phone app for improving sleep quality among those with nightmare disorder or related PTSD; and, most recently, Mahana Therapeutics' digital CBT treatment Parallel for adults with irritable bowel syndrome.
Outside of regulatory, the digital therapeutics has also seen fundings and commercialization deals across the last year. Standouts among these include Click Therapeutics and Boehringer Ingelheim's $500 million-plus schizophrenia therapeutic agreement and Biofourmis' $100 million raise.
ON THE RECORD
“We believe prescription digital therapeutics are creating a new category of medicine,” Kirthiga Reddy, partner at SoftBank Investment Advisers, and a board observer, said in a statement. “Pear Therapeutics has combined biology and software to pioneer the first end-to-end platform for prescription digital products, with an initial focus on serious psychiatric diseases. We’re pleased to support Pear’s mission to create the next generation of therapeutics and deliver better patient outcomes.”