Prescription therapeutics company Pear Therapeutics, announced on Friday they are looking into “strategic alternatives” that could bolster its current precarious financial situation. The company is looking to “maximise shareholder value” through a potential merger, acquisition, or outright sale, and is also considering the possibility of a licensing agreement for or sale of specific assets. Without securing a strategic transaction, Pear may need to reorganise, restructure, or liquidate the company entirely.
The announcement comes following several attempts by Pear to reduce the company's expenses. In 2022, Pear had its sights set on achieving $22 million in net revenue, however, it soon reduced that forecast. In a money-saving effort the company began a restructuring process in the third quarter, which included laying off 25 employees, 9% of its workforce, with 59 more employees laid off later that year.
These money-saving attempts have come as the company's expenses reach unprecedented heights. In 2021, Pear’s total recorded expenses were almost $110 million, resulting in a net loss of approximately $65 million. By quarter three of 2022, its expense had already exceeded $104 million, with the company calculating a net loss of more than $49 million over that period.
Pear’s stock price has generally declined since hitting the public market in late 2021. After the news broke on Friday, the company's stock price opened at an all-time low of 33 cents per share.
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