Better Therapeutics, a dietary cognitive behavioral remedy digital therapeutics firm, introduced plans in the present day to go public by merging with particular function acquisition firm Mountain Crest Acquisition Corp II.
The deal is predicted to shut this summer season, topic to stockholder approval, and can elevate $113 million for the mixed firm. It features a $50 million non-public funding in public fairness (PIPE) from traders at Farallon Capital Management, RS Investments, Sectoral Asset Management, Monashee Investment Management and different undisclosed traders, in addition to $6 million from a separate non-public placement.
Once accomplished, Better Therapeutics might be valued at roughly $187 million, and the mixed firm will commerce beneath the image BTTX.
Better Therapeutics plans to make use of the proceeds of the deal to advance its digital therapeutic product pipeline and to realize Food and Drug Administration advertising authorization for its Type 2 diabetes therapy program.
WHY THIS MATTERS
The firm was constructed on the concept, via digitally delivered cognitive behavioral remedy, sufferers might create change across the root causes of cardiometabolic situations like diabetes and coronary heart illness.
Its lead product, BT-001, is meant to help individuals with Type 2 diabetes enhance their glycemic management by decreasing their HbA1C ranges. The digital therapeutic is at the moment being examined in a pivotal trial, and has beforehand proven “meaningful improvements in glycemic control” in past pilot studies.
“Today, 34 million people in the U.S. have been diagnosed with type 2 diabetes, and another 88 million are considered prediabetic. We believe we have an immense opportunity to fundamentally change the treatment paradigm for these individuals with our PDT platform,” David Perry, cofounder and govt chairman of Better Therapeutics, stated in a press release.
“Multiple studies published in peer-reviewed medical journals support our proposition that our digital therapeutics have the potential to improve blood glucose and HbA1c levels similar to drug therapies. We believe that by addressing the underlying causes of disease, our products have the potential to improve patient health while reducing treatment costs.”
In addition to BT-001, Better Therapeutics is creating merchandise to deal with Type 2 diabetes with comorbid hypertension, hypertension, hyperlipidemia and hypertriglyceridemia.
THE LARGER TREND
The digital diabetes administration house is already fairly crowded. Better Therapeutics faces competitors from veteran within the house Welldoc and its heavily FDA-cleared prescription BlueStar app.
Better Therapeutics additionally joins the rising variety of startups going public via SPAC mergers. In the primary quarter of 2021 alone, 10 digital well being startups both went public or introduced plans to go public via a SPAC deal, in response to Rock Health’s latest quarterly report.
ON THE RECORD
“This is a unique time to build a company like Better Therapeutics,” stated Kevin Appelbaum, cofounder and CEO of Better Therapeutics, in a press release.
“Patients, doctors and insurers have grown increasingly comfortable with digitally delivered solutions, including prescription digital therapeutics, and we are uniquely positioned to change the way some of the most prevalent and costly diseases are treated.”