Pear Therapeutics, Inc. (Nasdaq: PEAR), the leader in developing and commercializing software-based medicines called prescription digital therapeutics (PDTs), today reported results for its second quarter ended June 30, 2022.
"Pear continues to make significant progress in introducing PDTs as an innovative class of medicine," said Corey McCann, M.D., Ph.D., President and Chief Executive Officer of Pear Therapeutics. "We believe our evidence generation strategy is demonstrating that our products increase access, improve outcomes, and deliver value for patients, providers, and payors. We are narrowing our focus on near-term commercial execution and making the necessary resource decisions to position Pear to deliver long-term shareholder value."
Second Quarter 2022 Financial and Operational Performance Metrics Results
Second quarter revenue grew to $3.3 million, up from $2.7 million in Q1 2022, and compared with $1.2 million for the second quarter of 2021.
Net Revenue and Key Operating Metrics* |
|
Q2 2022 Actual |
|
Updated Full Year
|
Net Revenue |
|
$3.3 million |
|
$14-$16 million |
Total Prescriptions |
|
11,000+ |
|
35,000-45,000 |
Fulfillment Rate |
|
56% |
|
50-65% |
Payment Rate |
|
45% |
|
50-65% |
Average Selling Price (ASP) |
|
$1,323 |
|
$1,150-$1,350 |
*Definitions for Net Revenue, Total Prescriptions, Fulfillment Rate, Payment Rate, and ASP can be found in the current Form 10-Q.
Second Quarter 2022 Business and Strategic Highlights
Patient Access
Market Access
Real World Evidence
PearCreatetm and PearConnecttm
Subsequent Events in Third Quarter 2022
Patient Access
Real World Evidence
Organizational
Internet Posting of Information
Pear routinely posts information that may be important to investors in the "Investors" section of its website at www.peartherapeutics.com. The company encourages investors and potential investors to consult its website regularly for important information about the company, including its investor presentation.
Conference Call and Webcast Information
Pear management team will host a conference call and live webcast today, August 11, 2022, at 4:30 p.m. ET. To access the live conference call or webcast, participants should register online at https://investors.peartherapeutics.com/news-events/events-presentations. To avoid delays, we encourage participants to register fifteen minutes ahead of the scheduled start time.
A replay of the audio webcast will be available in the Investors section of the company's website at www.peartherapeutics.com approximately two hours after completion of the call and will be archived for up to 30 days.
For additional information about reported results, investors will be able to access Pear's Form 10-Q on the company's website at www.peartherapeutics.com or on the Securities and Exchange Commission website, www.sec.gov.
The conference call may include forward-looking statements. See the cautionary information about forward-looking statements in the Forward-Looking Statements section of this press release.
About Pear Therapeutics
Pear Therapeutics, Inc., which is traded on Nasdaq as PEAR, is the parent company of Pear Therapeutics (US), Inc. Pear is the leader in developing and commercializing software-based medicines, called prescription digital therapeutics (PDTs). Pear aims to redefine care through the widespread use of clinically validated software-based therapeutics to provide better outcomes for patients, smarter engagement and tracking tools for clinicians, and cost-effective solutions for payers. Pear has the first end-to-end platform to discover, develop, and deliver PDTs to patients and a pipeline of products and product candidates across therapeutic areas, including the first three PDTs with disease treatment claims from the FDA. Pear's product, reSET®, for the treatment of substance use disorder, was the first PDT to receive marketing authorization from the FDA to treat disease. Pear's second product, reSET-O®, for the treatment of opioid use disorder, was the first PDT to receive Breakthrough Designation. Pear's third product, Somryst® for the treatment of chronic insomnia, was the first PDT submitted through FDA's traditional 510(k) pathway while simultaneously reviewed through FDA's Software Precertification Pilot Program. For more information, visit Pear at www.peartherapeutics.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws that are subject to risks and uncertainties and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements generally relate to future events involving, or future performance of, Pear. For example, Pear's operating and financial guidance for full year 2022, whether Pear makes significant progress in introducing PDTs as an innovative class of medicine, whether our products increase access, improve outcomes, and deliver value for patients, providers, and payors, whether Pear continues to generate patient access to PDTs as a mainstream medical treatment, and whether Pear is positioned to raise capital when the market improves while we drive focused commercial execution, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "guidance", "may", "should", "could", "might", "plan", "possible", "project", "strive", "aim", "budget", "forecast", "expect", "intend", "will", "estimate", "anticipate", "believe", "predict", "potential", "target", or "continue", or the negatives of these terms or variations of them or similar terminology.
These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Pear and its management are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (i) Pear's ability to meet its full year 2022 revenue forecast or other 2022 guidance, (ii) Pear's ability to extend its runway; (iii) Pear's ability to successfully commercialize its PDTs; (iv) changes in applicable laws or regulations; (v) the possibility that Pear may be adversely affected by other economic, business, regulatory, and/or competitive factors; (vi) Pear's estimates of expenses and profitability; (vii) the evolution of the markets in which Pear competes; (viii) the ability of Pear to implement its strategic initiatives and continue to develop its existing products; (ix) the ability of Pear to defend its intellectual property and satisfy regulatory requirements; (x) the ability of Pear to issue equity or equity-linked securities in the future or otherwise raise capital to fund its operations; (xi) the impact of the COVID-19 pandemic on Pear's business; and (xii) other risks and uncertainties set forth in Pear's filings with the SEC (including those described in the Risk Factors section). These filings will identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements.
Readers are cautioned not to put undue reliance on forward-looking statements, which are based only on information currently available to us and speak only as of the date of this release. Pear assumes no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by law. Pear gives no assurance that Pear will achieve its expectations.
References:
Pear Therapeutics, Inc. Unaudited Condensed Consolidated Statements of Operations |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
(in thousands, except per share data) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenue |
|
|
|
|
|
|
|
|
||||||||
Product revenue |
|
$ |
2,997 |
|
|
$ |
1,047 |
|
|
$ |
5,746 |
|
|
$ |
1,347 |
|
Collaboration and license revenue |
|
|
300 |
|
|
|
154 |
|
|
|
300 |
|
|
|
230 |
|
Total revenue |
|
|
3,297 |
|
|
|
1,201 |
|
|
|
6,046 |
|
|
|
1,577 |
|
Cost and operating expenses |
|
|
|
|
|
|
|
|
||||||||
Cost of product revenue |
|
|
2,401 |
|
|
|
727 |
|
|
|
3,882 |
|
|
|
1,465 |
|
Research and development |
|
|
12,716 |
|
|
|
7,877 |
|
|
|
25,980 |
|
|
|
15,367 |
|
Selling, general and administrative |
|
|
21,000 |
|
|
|
14,546 |
|
|
|
43,745 |
|
|
|
27,845 |
|
Total cost and operating expenses |
|
|
36,117 |
|
|
|
23,150 |
|
|
|
73,607 |
|
|
|
44,677 |
|
Loss from operations |
|
|
(32,820 |
) |
|
|
(21,949 |
) |
|
|
(67,561 |
) |
|
|
(43,100 |
) |
Other income (expenses): |
|
|
|
|
|
|
|
|
||||||||
Interest and other (expense) income, net |
|
|
(343 |
) |
|
|
(1,018 |
) |
|
|
(1,359 |
) |
|
|
(2,044 |
) |
Change in estimated fair value of earn-out liability |
|
|
29,163 |
|
|
|
? |
|
|
|
43,790 |
|
|
|
? |
|
Change in estimated fair value of warrant liabilities |
|
|
9,462 |
|
|
|
(5,234 |
) |
|
|
6,733 |
|
|
|
(5,397 |
) |
Loss on extinguishment of debt |
|
|
? |
|
|
|
? |
|
|
|
? |
|
|
|
? |
|
Loss on issuance of convertible preferred stock |
|
|
? |
|
|
|
? |
|
|
|
? |
|
|
|
(2,053 |
) |
Total other (expense) income |
|
|
38,282 |
|
|
|
(6,252 |
) |
|
|
49,164 |
|
|
|
(9,494 |
) |
Net income (loss) |
|
$ |
5,462 |
|
|
$ |
(28,201 |
) |
|
$ |
(18,397 |
) |
|
$ |
(52,594 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net loss per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.04 |
|
|
$ |
(0.25 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.48 |
) |
Diluted |
|
$ |
0.04 |
|
|
$ |
(0.25 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.48 |
) |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
138,288 |
|
|
|
111,947 |
|
|
|
138,071 |
|
|
|
110,311 |
|
Diluted |
|
|
147,422 |
|
|
|
111,947 |
|
|
|
138,071 |
|
|
|
110,311 |
|
Pear Therapeutics, Inc. Unaudited Condensed Consolidated Balance Sheets |
||||||||
|
|
|
|
|
||||
(in thousands) |
|
June 30, 2022 |
|
December 31, 2021 |
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
60,185 |
|
|
$ |
169,567 |
|
Short-term investments |
|
|
46,922 |
|
|
|
5,004 |
|
Restricted cash - short-term |
|
|
66 |
|
|
|
? |
|
Accounts receivable |
|
|
5,377 |
|
|
|
1,794 |
|
Prepaid expenses and other current assets |
|
|
8,320 |
|
|
|
8,876 |
|
Total current assets |
|
|
120,870 |
|
|
|
185,241 |
|
Property and equipment, net |
|
|
6,642 |
|
|
|
6,255 |
|
Right-of-use assets |
|
|
9,768 |
|
|
|
? |
|
Restricted cash |
|
|
411 |
|
|
|
411 |
|
Other long-term assets |
|
|
4,828 |
|
|
|
5,253 |
|
Total assets |
|
$ |
142,519 |
|
|
$ |
197,160 |
|
Liabilities and stockholders' deficit |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
2,040 |
|
|
$ |
1,806 |
|
Accrued expenses and other current liabilities |
|
|
15,071 |
|
|
|
17,946 |
|
Lease liabilities - current |
|
|
1,821 |
|
|
|
? |
|
Deferred revenues |
|
|
680 |
|
|
|
421 |
|
Debt |
|
|
27,354 |
|
|
|
26,993 |
|
Total current liabilities |
|
|
46,966 |
|
|
|
47,166 |
|
Lease liabilities - noncurrent |
|
|
9,217 |
|
|
|
? |
|
Embedded debt derivative |
|
|
123 |
|
|
|
675 |
|
Warrant liabilities |
|
|
1,795 |
|
|
|
8,528 |
|
Earn-out liability |
|
|
4,573 |
|
|
|
48,363 |
|
Other long-term liabilities |
|
|
805 |
|
|
|
1,994 |
|
Total liabilities |
|
|
63,479 |
|
|
|
106,726 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders' equity: |
|
|
|
|
||||
Common stock |
|
|
14 |
|
|
|
14 |
|
Additional paid-in capital |
|
|
345,526 |
|
|
|
338,404 |
|
Accumulated deficit |
|
|
(266,380 |
) |
|
|
(247,983 |
) |
Accumulated other comprehensive income |
|
|
(120 |
) |
|
|
(1 |
) |
Total stockholders' equity |
|
|
79,040 |
|
|
|
90,434 |
|
Total liabilities and stockholders' equity |
|
$ |
142,519 |
|
|
$ |
197,160 |
|
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