The deal is expected to provide $400 million in gross proceeds for commercialisation of Pear’s three FDA-authorised products
Pear Therapeutics has announced a merger with Thimble Point Acquisition, a special purpose acquisition company (SPAC), in a deal worth $1.6bn to go public.
Founded in 2013, Pear is engaged in developing and commercialising prescription digital therapeutics (PDTs) to treat serious diseases.
The company has commercialised three FDA-authorised PDTs and has 14 product candidates. It is also scaling its platform for third-party product distribution opportunities.
The three FDA-authorised products include reSET, reSET-O and Somryst, which are developed for patients suffering from substance and opioid use disorders.
Pear’s reSET is developed for the treatment of substance use disorder, while reSET-O is for the treatment of opioid use disorder. The company’s third product Somryst is designed for the treatment of chronic insomnia.
Pear Therapeutics president and chief executive officer Corey McCann said: “At Pear, we set out to transform healthcare through the use of PDTs, a new class of clinically validated, software-based therapeutics that we pioneered to improve patients’ outcomes across many therapeutic areas, alone and in combination with pharmaceuticals.
“With our end-to-end PDT platform, we are executing on our vision to redefine how patients, clinicians and payors can better navigate and benefit from a healthcare system so in need of disruption.”
The business combination is expected to provide $400m in gross proceeds that includes $276m of funds held in Thimble Point’s trust account and a $125m upsized private investment in public equity (the PIPE).
Net proceeds from the deal are expected to be invested in the commercialisation of Pear’s three FDA-authorised products.
The transaction is expected to be completed in the second half of 2021.
Upon completion of the transaction, the combined company will be named as Pear Holdings.
BofA Securities and Citi are serving as financial advisors to Pear on the transaction, Goodwin Procter and Foley Hoag are acting as its legal advisors.
McCann said: “In our view Pear is at a commercial inflection point, with the potential for rapid expansion. We believe this transaction will allow us to drive widespread usage of PDTs to treat major medical conditions and overcome significant barriers to patient care.”