Editor’s note: This story has been updated with additional information on Pear’s financial state.
According to the court filing, Pear’s assets were split between four bidders: Digital therapeutics company Click Therapeutics, Harvest BIO, sleep tech company Nox Health Group and health technology company Welt.
The largest bid of the group came from Nox Health, which will obtain Pear’s assets related to Somryst, a prescription digital therapeutic that uses cognitive behavioral therapy for insomnia to train the brain and body to sleep. Nox will pay $3.9 million for the assets.
Harvest Bio was the successful bidder of Pear’s Invention Science Fund (ISF) licenses and patents as well as its assets related to schizophrenia, multiple sclerosis and depression, major depressive disorder and other pipeline assets. Harvest also successfully purchased Pear’s corporate trademarks, PearConnect, reSET and reSET-O assets. Harvest purchased the assets for an aggregate price of $2.03 million.
Click Therapeutics bid $70,000 for all Pear’s platform patents, excluding those related to the ISF assets, and Welt agreed to purchase Pear’s migraine-related assets for $50,000.
THE LARGER TREND
The company hit the public markets in late 2021 through a merger with a special purpose acquisition company, then a popular method of public exit for digital health firms. But the company’s stock price has generally declined since then.
In quarter three of 2022, Pear reported $4.1 million in revenue and a $30.7 million net loss. The company also said it had approved more layoffs, affecting 59 employees, or about 22% of Pear’s workforce at the end of September. It had previously laid off 25 workers over the summer.
In March, Pear announced it was exploring “strategic alternatives,” including a possible company sale, merger or acquisition.
In a filing with the Securities and Exchange Commission, Pear withdrew its revenue and operating guidance for fiscal 2022 and 2023 and announced it wouldn’t hold a fourth quarter and full-year earnings call.
Last month, Pear filed for Chapter 11 bankruptcy and announced it was seeking a sale of its business or assets but would continue its scaled-down operations during Chapter 11 as it sought a sale, and Pear would use its available cash to fund its operations and costs post-petition.
The Boston-based company’s CEO Corey McCann referenced the filing on LinkedIn, stating, “Today is a difficult day for Pear Therapeutics. We announced that Pear voluntarily filed for Chapter 11 and will seek to sell assets through a sales process. We also announced a reduction in force, including me. This is certainly not the outcome I envisioned when I founded Pear in 2013.”