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Prescription digital therapeutics (PDT) start-up Better Therapeutics on Wednesday confirmed rumours that it is going public via a merger agreement with special purpose acquisition company (SPAC) Mountain Crest Acquisition, raising up to $113 million to advance a pipeline of cognitive behavioural therapy products that it says address "root causes" of cardiometabolic diseases. The transaction, which is expected to close this summer, gives Better Therapeutics an enterprise value of around $187 million.
CEO Kevin Appelbaum remarked that "this is a unique time to build a company like Better Therapeutics. 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."
The transaction, which includes a $50-million private investment in public equity from healthcare investors, has been approved by the companies' boards, but remains subject to approval by shareholders.
The proceeds will be used to advance Better Therapeutics' type 2 diabetes treatment candidate BT-001 toward FDA marketing authorisation, as well as the company's pipeline of PDTs for a range of cardiometabolic diseases.
David Perry, executive chairman at the start-up, said "we have an immense opportunity to fundamentally change the treatment paradigm for these individuals [with diabetes] with our PDT platform." He added that "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."
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