Pear Therapeutics Secures $64 Million Series C Funding to Advance First FDA-Approved Prescription Digital Therapeutics

Recently, VCBeat (WeChat Official Account: vcbeat) learned from foreign media reports that U.S. biotechnology company Pear Therapeutics has completed a $64 million Series C financing round. The round was led by Temasek, Singapore’s sovereign wealth fund, with additional investments from existing investors Novartis, 5AM Ventures, Arboretum Ventures, Jazz Venture Partners, The Bridge Builders Collaborative, and EDBI, the independent investment arm of the Singapore Economic Development Board (EDB). In addition, several new investors participated in this round, including Blue Water Life Science Fund, ZhenFund, and a diversified hedge fund.

Pear Therapeutics, founded in 2013, is a leader in Prescription Digital Therapeutics (PDTs). PDTs are developed based on randomized clinical trials that generate clinical data to demonstrate their safety and efficacy. Leveraging this data, healthcare companies seek FDA marketing authorization for the treatment of diseases. PDTs are distributed via physician prescriptions, either as monotherapy or in combination with pharmaceuticals. They are reimbursed by insurers through pathways traditionally associated with drugs and therapeutic medical devices.

Pear Therapeutics aims to redefine medicine by discovering, developing, and delivering clinically validated Prescription Digital Therapeutics (PDTs), thereby providing patients with improved treatment outcomes, equipping clinicians with smarter engagement and monitoring tools, and offering cost-effective solutions to healthcare payers. Pear Therapeutics has a portfolio of products and product candidates in the field of digital therapeutics.

Some Products of Pear Therapeutics (Image from the Company’s Official Website)

The company’s flagship product is reSET, the first FDA-approved digital therapeutic for the treatment of substance use disorder (SUD). This product empowers patients to manage drug addiction and serves as an adjunctive therapy in the treatment of stimulant, cannabis, cocaine, and alcohol dependence.

reSET-O is the company’s second product and the first digital therapeutic authorized by the FDA in December 2018 for the treatment of opioid use disorder (OUD). It was the first prescription digital therapeutic (PDT) to receive FDA Breakthrough Device designation, and it is used in conjunction with buprenorphine under clinical supervision. reVIVE™ is a product indicated for the treatment of generalized anxiety disorder (GAD) and panic disorder (PD), which is also used alongside pharmacotherapy to intervene in the disease course.

The company’s recently developed product is THRIVE™. THRIVE™ is the first digital therapeutic product for schizophrenia. The product has also attracted Novartis; last May, Novartis and Pear Therapeutics signed an agreement to jointly develop two digital therapeutics, including THRIVE™. Last November, Pear Therapeutics and its commercial partner, Sandoz, a subsidiary of Novartis Pharmaceuticals, announced the resumption of their commercialization and development agreement.

Pear Therapeutics’ product portfolio spans multiple areas of mental health treatment. In addition to the aforementioned products, Pear Therapeutics has developed reCALL, a digital therapeutic primarily targeting post-traumatic stress disorder (PTSD) in military personnel. reCALL utilizes VR devices to facilitate treatment, enabling patients to confront and reduce traumatic memories by recounting their experiences.

The prospects of digital therapeutics have long been viewed favorably by major pharmaceutical companies and investment firms. Pear Therapeutics, established less than six years ago, has emerged as a leader in this field. In March 2015, Pear Therapeutics completed its seed funding round, with the specific amount undisclosed. In February 2016, the company secured $20 million in Series A financing, led by 5AM Ventures, with participation from Arboretum Ventures and Jazz Venture Partners. In January 2018, it closed a $50 million Series B round led by Temasek Holdings. As of this latest funding round, the company’s total capital raised reached $134 million.

Pear Therapeutics is not the only company showing interest in digital therapeutics for psychiatric disorders; Otsuka Pharmaceutical Co., Ltd. of Japan is also venturing into this field. The company has launched Abilify MyCite to address poor medication adherence among patients with psychiatric disorders, which can compromise treatment efficacy.

Temasek Holdings, established in 1974, is a holding company registered under private law and supervised by the Singapore Ministry of Finance. The company manages 23 state-linked enterprises (which can be regarded as its subsidiaries) through shareholding, including 14 wholly-owned companies, seven listed companies, and two limited liability companies. Its portfolio comprises more than 2,000 enterprises of various sizes, with a total workforce of 140,000 employees. Total assets exceed US$42 billion, accounting for approximately 8% of Singapore’s GDP.

Arboretum Ventures, founded in 2002, is a venture capital firm based in Michigan that primarily invests in medical technology and healthcare companies. The firm focuses on seed, early-stage, mid-stage, and growth capital investments, with an emphasis on the sectors of services, medical devices, diagnostics, healthcare information technology, therapeutics, technology-enabled healthcare services, and life sciences tools.

Jazz Venture Partners, established in 2015, is a U.S. venture capital firm dedicated to technologies that expand the boundaries of human performance. The company primarily invests in enterprises at the intersection of digital technology and neuroscience, particularly those leveraging cutting-edge brain science to inform powerful technological platforms that shape human experience, such as virtual reality and augmented reality, immersive video games, artificial intelligence, and closed-loop human-machine systems.

The Bridge Builders Collaborative is a U.S. venture capital firm dedicated to supporting social entrepreneurs focused on scalable applications, practices, products, and tools.

Economic Development Board Investments Pte Ltd (EDBI), established in 1991, is an independent investment arm of the Singapore Economic Development Board (EDB). The company was set up to promote and catalyze the competitive growth of new industrial clusters and strengthen existing economic activities through investments. Currently, it actively invests in sectors such as biomedicine, new/clean energy, and digital media.Long-termProject.

Trustbridge Partners, established in 2006, is an offshore investment fund management platform focused on the Chinese market. Trustbridge’s private equity funds primarily invest in growth-stage and expansion-stage companies across industries such as new energy, environmental protection, new materials, consumer products and services, retail and distribution, and new media. Trustbridge Partners also manages a $300 million hedge fund that primarily invests in Chinese companies listed on overseas securities markets, and oversees a $100 million QFII quota allocated by Columbia University’s endowment for investments in China’s domestic A-share market.