Better Therapeutics

History

2023: Cut a third of the state

Better Therapeutics, a developer of digital solutions for diabetes and heart disease, is cutting roughly a third of its workforce - 35%. This is stated in documents sent on March 23, 2023 to the US Securities and Exchange Commission (SEC).

According to Better Therapeutics CEO Frank Karbe, the reduction in headcount is a forced decision aimed at reducing costs. As of the end of 2021, the company had a total of 44 employees, meaning about 15 people could lose their jobs. Better Therapeutics will take other measures to improve financial position and ensure long-term success.

Application from Better Therapeutics

Layoffs are disastrous for everyone. As CEO, I take responsibility for these actions. The incredible effort you all put in has allowed us to create a high quality digital therapeutic platform. But due to volatility and uncertainty in the market, we need to take measures to save money, "said Karbe.

It is expected that the financial losses associated with the reorganization and severance payments will amount to approximately $400 thousand. The company notes that it could face "significant costs" in the foreseeable future, driven by the further development of a planned range of digital therapeutics and the commercialization of products that have received the necessary regulatory approvals. Better Therapeutics does not give an accurate estimate of these costs, but says it will "need significant additional" money to continue operations. If funding fails, business operations will be "seriously affected."^[1]

2021: Going public on the Nasdaq

At the end of October 2021, Better Therapeutics, specializing in prescription digital therapies diabetes and diseases, hearts joined the ranks of publicly registered digital companies health care after completing a merger with SPAC Mountain Crest Acquisition Corp II.

Better Therapeutics went public on the Nasdaq under the ticker symbol BTTX. The stock initially fell slightly from an opening price of $10.04 after closing its merger deal with a special acquisition company (SPAC), but then soared to $16.76 in pre-market trading. SPAC's path to public listing is increasingly being used by digital healthcare companies as an alternative to initial public offering (IPO), among recent examples being Pear Therapeutics and telemedicine company Babylon Health. Due to the fact that it can be faster, easier and cheaper than an IPO, in which investment banks receive a significant part of gross revenue in the form of commissions, and also involves less thorough inspection of the company's finances, obligations and operating processes.

Digital solutions developer for diabetes and heart disease Better Therapeutics goes public

The proceeds of about $70 million will provide the company with funding through 2023 and will be used to promote Better Therapeutics' leading prescription drug for type 2 diabetes, through clinical trials and submission for approval to the Food and Drug Administration (FDA), according to the digital health company.

We envision a future in which digital therapeutics often become the first prescription to be issued to address the underlying causes of diseases caused by patient behavior. Completing this deal and raising capital will help lead our team in this transformation, starting with cardiometabolic diseases, "said Better Therapeutics co-founder and chief executive Kevin Appelbaum.

BT-001 is a tool designed to change behavior, which is the leading cause of type 2 diabetes and as of November 1, 2021, the drug is being investigated as part of a pivotal study as a physician-supervised treatment for people with uncontrolled diabetes. In the summer of 2021, Better Therapeutics recruited the first patient in a real-world study BT-001 in partnership with U.S. primary care organization Catalyst Health Network to assess the long-term impact of the facility.

Cash infusions will also be used to promote a line of prescription digital therapeutics (DTx) for other cardiometabolic diseases, which includes BT-002 for hypertension and BT-003 for elevated blood cholesterol, as well as a candidate for non-alcoholic fatty liver disease. The company gets access to an additional credit line in the amount of $40 million, subject to reaching certain milestones.^[2]

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