Pear Therapeutics (Nasdaq:PEAR) announced today that it engaged in a process to explore strategic alternatives to maximize shareholder value.
Shares of PEAR fell more than 30%to 41¢ apeice in midday trading on the back of the news. MassDevice‘s MedTech 100 index, which includes stocks of the world’s largest medical device companies, was up slightly.
Boston-based Pear enlisted MTS Health Partners to act as its exclusive financial advisor in evaluating potential alternatives. MTS Health Partners provides strategic and financial advice to the healthcare industry.
According to a news release, Pear’s effort could include seeking out a range of options, including an acquisition or company sale. Other options include a merger, divestiture of assets, licensing or other strategic transactions. Pear may also seek additional financing.
The company set no timetable for the process. It said in a news release that it can’t make assurances that the process will result in the company pursuing a transaction. Additionally, if one is pursued, the company can’t guarantee that it will be “completed on attractive terms.”
If unable to complete a transaction, Pear may be forced to seek a reorganization, liquidation or other restructuring. The company has no expectations of disclosing or providing an update concerning developments related to the process unless or until its board approves a definitive course of action or determines that disclosure is necessary or appropriate.
More on Pear Therapeutics’ struggles
Pear Therapeutics develops prescription digital therapeutics. Treatment areas include substance use disorder, opioid use disorder, chronic insomnia and more.
It’s been a rough year or so for Pear, which went public through a SPAC merger in December 2021. In July 2022, the company laid off roughly 25 workers (9% of its workforce). It attributed this decision to an overall operations restructuring. The company sought to “narrow its near-term business focus and reduce its workforce due to the macroeconomic environment.”
In November, Pear announced further headcount cuts. These aimed to reduce its 2023 operating expenses, extend its cash runway and reduce its reliance on financing. The reduction affected approximately 59 employees, representing 22% of its workforce. At the time, the company said it anticipated annual cost savings of approximately $10.7 million in 2023 as a result of the cuts.