BOSTON–(BUSINESS WIRE)–Pear Therapeutics, Inc. (Nasdaq: PEAR), the leader in developing and commercializing software-based medicines, called prescription digital therapeutics (PDTs), today reported financial results for its fourth quarter and full year 2021 ended December 31, 2021.
Fourth Quarter 2021 Financial Results
Pear’s total revenue for the fourth quarter of 2021 was $1.3 million, compared with $34 thousand for the fourth quarter of 2020, with the increase over the prior year period primarily related to product sales of its three FDA-authorized products.
Full Year 2021 Financial and Operational Performance Metrics Results
In 2021, Pear achieved strong financial results and commercial progress from its portfolio of marketed products across key performance metrics of prescriptions, fulfillment, covered lives, and revenue.
|
|
Full Year 2021 |
||
Financial and Key Operating Performance Metrics* |
|
(Guidance) |
|
(Actual) |
Revenue |
|
$4M |
|
$4.2M |
Prescriptions |
|
12,500 |
|
14,000+ |
Fulfillment Rate |
|
50% |
|
~51% |
Covered Lives |
|
30M-40M |
|
31.7M+ |
Gross to Net |
|
8% |
|
18% |
* To illustrate how prescriptions written, fulfillment rate, and covered lives relate to product revenue, we believe it is helpful to provide a hypothetical scenario of 100 prescriptions written with a 50% fulfillment rate and a 50% payment rate. We use covered lives as a metric that is expected to impact payment rate because, as we grow the number of covered lives for our three products, the payment rate should increase. In this hypothetical scenario, Pear has 50 filled prescriptions, of which 25 are paid. Product revenue for the 100 prescriptions written is calculated by multiplying (a) 25 paid prescriptions by (b) the wholesale acquisition cost (WAC) for the respective prescriptions, reduced by (c) any applicable discounts and rebates as well as estimated contingency management costs, if applicable.
“We showed strong execution in 2021, with the company reaching its first commercial inflection point, highlighted by our rapid progress on provider adoption and payor access for our three commercial PDTs,” said Corey McCann, M.D., Ph.D., President and Chief Executive Officer of Pear Therapeutics. “In 2022, we will build value for our shareholders by continuing to bring our PDTs to more and more patients and providers, increase access to our PDTs to help improve the lives of the patients we serve, publish health economic data generated in the real world, advance our pipeline, develop our commercial platform called PearConnect™ and our development platform called PearCreate™.”
2021 Business Highlights
Subsequent Events in Q1 2022
2022 Financial and Operational Outlook
Pear provides guidance for full year 2022 as follows:
Key Performance Operating Metrics |
|
Guidance |
Revenue |
|
$22M |
Prescriptions |
|
50,000-60,000 |
Fulfillment Rate |
|
50-65% |
Covered Lives |
|
100M-120M |
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 on March 28, 2022 at 4:30 p.m. ET. To access the live conference call via telephone, please dial (877) 814-6630 (US callers) or (409) 216-0625 (international callers) and provide passcode 8586341. A live webcast will be available in the Investors section of the company’s website at www.peartherapeutics.com.
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.
Pear plans to file its Form 10-K for the year ended December 31, 2021, with the Securities and Exchange Commission on or before March 31, 2022. For additional information about reported results, investors will be able to access the Form 10-K on the company’s website at www.peartherapeutics.com or on the SEC site, 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 its PDT product candidate for alcohol use disorder will be authorized by FDA and statements regarding its ability to advance its product candidates 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 advance the development, clinical testing or regulatory pathway of its AUD or depression assets; (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 innovate 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:
1. Velez FF, Colman S, Kauffman L, Ruetsch C, Anastassopoulos K, Maricich YA. Comparison of Healthcare Resource Utilization Between Patients Who Engaged or Did Not Engage With a Prescription Digital Therapeutic for Opioid Use Disorder. Clinicoecon Outcomes Res. 2021;13:909-916 https://doi.org/10.2147/CEOR.S334274
2. Morin, C. Early data from a prescription digital therapeutic delivering CBT for insomnia. World Sleep Congress 2022.
Pear Therapeutics, Inc. Condensed Consolidated Statements of Operations |
||||||||||||
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||
(in thousands, except per share data) |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
Revenue |
|
|
|
|
|
|
|
|
||||
Product revenue |
|
$ |
1,198 |
|
$ |
34 |
|
$ |
3,748 |
|
$ |
149 |
Collaboration and license revenue |
|
|
122 |
|
|
— |
|
|
460 |
|
|
9,235 |
Total revenue |
|
|
1,320 |
|
|
34 |
|
|
4,208 |
|
|
9,384 |
Cost and operating expenses |
|
|
|
|
|
|
|
|
||||
Cost of product revenue |
|
|
1,648 |
|
|
377 |
|
|
5,233 |
|
|
1,718 |
Research and development |
|
|
12,098 |
|
|
6,318 |
|
|
37,041 |
|
|
28,084 |
Selling, general and administrative |
|
|
21,808 |
|
|
22,581 |
|
|
67,619 |
|
|
56,226 |
Total cost and operating expenses |
|
|
35,554 |
|
|
29,276 |
|
|
109,893 |
|
|
86,028 |
Loss from operations |
|
|
(34,234) |
|
|
(29,242) |
|
|
(105,685) |
|
|
(76,644) |
Other income (expenses): |
|
|
|
|
|
|
|
|
||||
Interest and other (expense) income, net |
|
|
(1,058) |
|
|
(841) |
|
|
(4,144) |
|
|
(1,767) |
Change in estimated fair value of earn-out liabilities |
|
|
47,038 |
|
|
— |
|
|
47,038 |
|
|
— |
Change in estimated fair value of warrant liabilities |
|
|
7,004 |
|
|
(747) |
|
|
(298) |
|
|
(795) |
Loss on extinguishment of debt |
|
|
— |
|
|
— |
|
|
— |
|
|
(998) |
Loss on issuance of legacy convertible preferred stock |
|
|
— |
|
|
(16,819) |
|
|
(2,053) |
|
|
(16,819) |
Total other income (expense) |
|
|
52,984 |
|
|
(18,406) |
|
|
40,543 |
|
|
(20,379) |
Net (loss) income |
|
$ |
18,750 |
|
$ |
(47,648) |
|
$ |
(65,142) |
|
$ |
(97,023) |
Unrealized (loss) gain on short-term investments |
|
$ |
(1) |
|
$ |
(4) |
|
$ |
(1) |
|
$ |
(29) |
Comprehensive (loss) income |
|
$ |
18,749 |
|
$ |
(47,652) |
|
$ |
(65,143) |
|
$ |
(97,052) |
Loss on repurchase of convertible preferred stock |
|
|
— |
|
|
(11,053) |
|
|
— |
|
|
(11,053) |
Net (loss) income attributable to common stockholders |
|
$ |
18,750 |
|
$ |
(58,676) |
|
$ |
(65,142) |
|
$ |
(108,076) |
|
|
|
|
|
|
|
|
|
||||
Net (loss) earnings per share: |
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.16 |
|
$ |
(0.63) |
|
$ |
(0.57) |
|
$ |
(1.21) |
Diluted |
|
$ |
0.13 |
|
$ |
(0.63) |
|
$ |
(0.57) |
|
$ |
(1.21) |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
||||
Basic |
|
|
120,356 |
|
|
93,119 |
|
|
113,328 |
|
|
89,216 |
Diluted |
|
|
146,796 |
|
|
93,119 |
|
|
113,328 |
|
|
89,216 |
|
|
|
|
|
|
|
|
|
Pear Therapeutics, Inc. Condensed Consolidated Balance Sheets |
||||||
|
|
December 31, |
||||
(in thousands) |
|
|
2021 |
|
|
2020 |
Assets |
|
|
|
|
||
Current assets: |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
169,567 |
|
$ |
110,900 |
Short-term investments |
|
|
5,004 |
|
|
13,535 |
Accounts receivable |
|
|
1,794 |
|
|
257 |
Prepaid expenses and other current assets |
|
|
8,876 |
|
|
1,365 |
Total current assets |
|
|
185,241 |
|
|
126,057 |
Property and equipment, net |
|
|
6,255 |
|
|
4,277 |
Restricted cash |
|
|
411 |
|
|
1,161 |
Other long-term assets |
|
|
5,253 |
|
|
871 |
Total assets |
|
$ |
197,160 |
|
$ |
132,366 |
|
|
|
|
|
||
Liabilities and stockholders’ equity |
|
|
|
|
||
Current liabilities: |
|
|
|
|
||
Accounts payable |
|
$ |
1,806 |
|
$ |
4,506 |
Accrued expenses and other current liabilities |
|
|
17,946 |
|
|
9,568 |
Deferred revenues |
|
|
421 |
|
|
267 |
Debt |
|
|
26,993 |
|
|
26,345 |
Total current liabilities |
|
|
47,166 |
|
|
40,686 |
|
|
|
|
|
||
Embedded debt derivative |
|
|
675 |
|
|
675 |
Warrant liabilities |
|
|
8,528 |
|
|
2,650 |
Earn-out liabilities |
|
|
48,363 |
|
|
— |
Other long-term liabilities |
|
|
1,994 |
|
|
1,239 |
Total liabilities |
|
|
106,726 |
|
|
45,250 |
Commitments and contingencies |
|
|
|
|
||
Legacy convertible preferred stock |
|
|
— |
|
|
— |
Stockholders’ equity: |
|
|
|
|
||
Common Stock |
|
|
14 |
|
|
11 |
Additional paid-in capital |
|
|
338,404 |
|
|
269,946 |
Accumulated deficit |
|
|
(247,983) |
|
|
(182,841) |
Accumulated other comprehensive (loss) income |
|
|
(1) |
|
|
— |
Total stockholders’ equity |
|
|
90,434 |
|
|
87,116 |
Total liabilities and stockholders’ equity |
|
$ |
197,160 |
|
$ |
132,366 |
Contacts
Media and Investors:
Meara Murphy
Senior Director of Corporate Communications
meara.murphy@peartherapeutics.com
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