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June 23, 2021updated 01 Nov 2021 7:25am

Pear Therapeutics to go public in nearly $1.6bn SPAC deal

Pear’s three FDA-authorised PDTs serve several million patients with opioid use disorders and chronic insomnia.

Pear Therapeutics has entered a definitive business combination agreement with a special purpose acquisition company (SPAC), Thimble Point Acquisition. The move will take Pear Therapeutics public.

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The deal values the combined entity at a pro forma equity value of nearly $1.6bn and will offer approximately $450m in net cash, including about $400m in gross proceeds.

Established in 2013, Pear focuses on creating and marketing prescription digital therapeutics (PDTs) for serious diseases.

So far, Pear has developed and marketed three US Food and Drug Administration (FDA)-authorised PDTs as well as having 14 product candidates in its pipeline.

Currently, the company is boosting its platform to aid in third-party product distribution.

Compared to standard drugs, PDTs are software applications developed to obtain real-world data, which can be used by prescribing doctors, payors and health systems for managing patients’ health.

In the US, the company’s FDA-authorised products, reSet, reSET-O and Somryst, serve more than 20 million patients who suffer from substance and opioid use disorders as well as more than 30 million patients with chronic insomnia.

Pear Therapeutics president and CEO 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.

“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.”

Of the $400m gross proceeds from the deal, about $276m will be funds held in Thimble Point’s trust account, along with an upsized private investment in public equity (PIPE) of $125m.

The merger’s net proceeds will be leveraged to boost the commercialisation of Pear’s three FDA-approved products, advance its pipeline and scale up its end-to-end platform.

The deal is anticipated to conclude in the second half of the year.

On completion, Pear’s existing management team will lead the combined company, which will be called Pear Holdings.

Thimble Point shareholders and PIPE investors will also own shares in the merged company.

Dentsply Sirona CFO Jorge Gomez, who is Thimble Point’s designee, will join the merged company’s board of directors and will act as audit committee chair.

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Free Report
img

What is driving M&A activity in the MedTech space?

The COVID-19 pandemic has left an indelible mark on the MedTech landscape. Changes in how healthcare is delivered, and new treatment modalities, are creating opportunities and challenges for both new and traditional players. As companies sought out opportunities during the pandemic-driven downturn, the number and value of mergers and acquisition deals in the MedTech space increased. Companies worked to reposition themselves in the newly aligned healthcare world, but with further economic turmoil expected: will these trends be repeated? And what tech areas should firms be looking to expand their capabilities into? GlobalData’s report, “Themes driving M&A activity in the Medical Devices Sector, Q1 2022,” draws upon GlobalData’s extensive MedTech deals databases, highlighting major trends and hot themes in M&A activity. This report will assist you in:
  • Understanding value and volume trends in M&A from Q1 2018 to Q1 2022
  • Understanding regional trends in M&A activity
  • Understanding which medical device sectors are leading M&A activity, and which are lagging
  • Understanding the leading tech trends in Q1 2022 M&A activity
  • Knowing the key deals that occurred during Q1 2022
Download the full report to understand what to expect and how to align your business for success.
by GlobalData
Enter your details here to receive your free Report.

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