According to a filing with the U.S Securities and Exchange Commission on Friday, digital therapeutics company, Better Therapeutics is laying off 35% of its workforce.
The layoffs were implemented “as part of a cost reduction initiative to improve [Better’s] cash runway and focus on the long-term success of the company,” according to the SEC filing.
Better Therapeutics is currently awaiting clearance for its first product, BT-001 . The prescription digital therapeutic uses nutritional cognitive behavioural therapy to help type 2 diabetes patients control their blood sugar. BT-001 has shown statistically significant decreases in A1c levels when administered alongside standard of care blood sugar lowering medication, when compared to a control group receiving standard care alone.
The announced job cuts come after a reported net loss of nearly $31M in the first nine months of 2022. Alongside this, Better reported its assets had dwindled to $28M, significantly lower than the $51M it reported at the end of 2021.
CEO Frank Karbe said in an email to employees on Thursday that the company is at a “critical moment in our evolution” as it awaits word from regulators on BT-001. But as the company navigates “volatility and uncertainty in the markets, it has become clear that we need to take action to preserve our cash runway,” he added, noting long-term plans for expanding into other cardiometabolic diseases “remains unchanged.”
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