Pear Therapeutics, Inc. (PEAR): history, ownership, mission, how it works & makes money

A Brief History of Pear Therapeutics, Inc. (PEAR)

Company Formation and Initial Funding

Pear Therapeutics, Inc. was founded in 2013 by Dr. Corey McCann, Dr. Kiana Aran, and Dr. Chris Bader. The company is based in Boston, Massachusetts. In its initial funding round, Pear raised $5 million in a Series A financing led by the investment firm, Accomplice. This initial funding helped establish the foundation for its innovative prescription digital therapeutics.

Product Development Milestones

In 2017, Pear Therapeutics received FDA breakthrough designation for its product, reSET, which was aimed at treating substance use disorders. The FDA subsequently approved reSET in September 2018, making it the first prescription digital therapeutic for the treatment of substance use disorders.

Series B and C Funding Rounds

Pear completed a Series B funding round in 2018, raising $20 million, followed by another round in 2020 (Series C) where the company secured an additional $80 million. These rounds allowed Pear to expand its product offerings and enhance its clinical studies.

Market Launch and Commercialization

In April 2021, Pear Therapeutics officially launched reSET-O, a prescription digital therapeutic for opioid use disorder, after receiving FDA approval. The product was released for use in conjunction with standard addiction treatment.

Financial Performance Overview

In 2021, Pear Therapeutics reported revenues of approximately $3.1 million, a significant increase compared to $325,000 in 2020. The company's operating expenses for the same year were around $57 million.

Partnerships and Collaborations

Pear has formed strategic partnerships with various healthcare organizations to enhance the distribution and implementation of its digital therapeutics. Notable partnerships include collaborations with Payors and healthcare providers to integrate digital therapeutics into traditional care pathways.

Stock Market Performance

Pear Therapeutics went public in December 2021 through a merger with a special purpose acquisition company (SPAC), known as Thimble Point Acquisition Corp. The transaction valued the company at approximately $1.6 billion. Following its market debut, shares experienced volatility, with stock prices ranging from $4.00 to $12.00 in the months following the IPO.

Ongoing Challenges and Future Directions

Despite the promising developments, Pear Therapeutics faces ongoing challenges in market adoption, regulatory hurdles, and competition from other digital therapy solutions. As of late 2022, the company continues to engage with investors and healthcare stakeholders to drive growth and expand its therapeutic offerings.

A Who Owns Pear Therapeutics, Inc. (PEAR)

Shareholder Composition

The ownership of Pear Therapeutics, Inc. is primarily composed of institutional investors and individual shareholders. As of the last reporting period in October 2023, the following data summarizes the major shareholders:

Major Institutional Investors

The following table outlines the key institutional investors that hold significant stakes in Pear Therapeutics:

Insider Ownership Details

Insider ownership represents a critical aspect of the company's stability. The primary insiders include executive leadership and board members:

Recent Investor Activity

Recent movements in share ownership indicate heightened interest in Pear Therapeutics, particularly among institutional investors:

• Total Shares Outstanding: 15 million shares
• Recent Institutional Buying Percentage: 5% increase since Q2 2023
• Notable Transactions:
  • Vanguard increased its holdings by 1 million shares in Q3 2023
  • BlackRock added 500,000 shares within the same period

Market Performance

The stock price of Pear Therapeutics (PEAR) has experienced fluctuations in the market:

Future Projections

Market analysts have projected future ownership dynamics and company growth based on recent financial performance:

• Expected Share Price in 2024: $3.00
• Projected Market Capitalization in 2024: $45 million
• Estimated Institutional Ownership Increase: 10% by end of 2024

Pear Therapeutics, Inc. (PEAR) Mission Statement

Overview of Pear Therapeutics

Pear Therapeutics, Inc. (PEAR) is a pioneering company in the field of digital therapeutics, focusing on developing software-based treatments that are designed to treat various medical conditions. As of the end of 2023, Pear Therapeutics has achieved significant milestones in the area of prescription digital therapeutics (PDTs).

Mission Statement

The mission of Pear Therapeutics is to transform medicine through software to improve patient outcomes. The company aims to create innovative therapeutic options that enhance treatment effectiveness, engage patients, and provide measurable clinical benefits.

Core Values

• Innovation: Continuously developing cutting-edge digital therapeutics.
• Patient-Centricity: Prioritizing the needs and experiences of patients.
• Responsibility: Upholding the highest standards of data privacy and security.
• Collaboration: Partnering with healthcare providers and researchers to advance digital medicine.

Product Portfolio

Pear Therapeutics' leading products include:

• reSET®: A prescription digital therapeutic for substance use disorder.
• reSET-O®: A PDT designed for opioid use disorder.
• Somryst®: A digital therapeutic for chronic insomnia, cleared by the FDA.

Financial Performance

As of Q3 2023, Pear Therapeutics reported the following financial metrics:

Market Position

Pear Therapeutics operates within the rapidly expanding digital health market, which was valued at approximately $6.4 billion in 2022 and is projected to grow at a CAGR of 22.5% from 2023 to 2030. The increasing adoption of digital health solutions has driven the demand for digital therapeutics, of which Pear is a leading player.

Strategic Partnerships

Pear Therapeutics has established several strategic alliances to enhance its product offerings:

• Partnership with T2 Health: Focused on developing digital solutions for behavioral health.
• Collaboration with leading academic institutions: Aiming to validate and advance the efficacy of PDTs.
• Alliances with pharmaceutical companies: To integrate digital therapeutics with traditional treatment regimens.

Regulatory Approvals

Pear Therapeutics has received FDA clearance for multiple products:

• reSET®: First PDT for substance use disorder, cleared in 2017.
• reSET-O®: Cleared in 2018 specifically for opioid use disorder.
• Somryst®: Approved in 2020 for chronic insomnia.

Future Outlook

Pear Therapeutics is positioned to expand its market presence with a focus on:

• New Product Development: Aiming to launch additional PDTs for various mental health conditions.
• Regulatory Expansion: Pursuing further FDA approvals for innovative therapies.
• Market Penetration: Expanding into international markets to reach a broader patient base.

How Pear Therapeutics, Inc. (PEAR) Works

Business Model

Pear Therapeutics, Inc. operates under a unique model that integrates digital therapeutics with traditional pharmaceutical approaches. The company focuses on developing prescription digital therapeutics (PDTs), which are software-based interventions designed to treat various diseases.

Product Offerings

• reSET-O: FDA-cleared for treating opioid use disorder.
• reSET: FDA-cleared for treating substance use disorders.
• Pear's pipeline includes additional products aimed at psychiatric conditions and chronic diseases.

Financial Performance

As of Q2 2023, Pear Therapeutics reported a total revenue of $10.8 million, with a significant year-over-year increase of 80%. The company had a net loss of $25 million during the same period, showing an improvement from the previous year's loss of $35 million.

Market Strategy

Pear Therapeutics targets both healthcare providers and payers. The strategy includes:

• Partnerships with healthcare systems to integrate PDTs into standard treatment plans.
• Collaboration with pharmaceutical companies to co-develop and distribute their digital therapeutics.
• Focused marketing campaigns to educate healthcare professionals about the benefits of digital therapeutics.

Recent Developments

In July 2023, Pear Therapeutics secured an additional $15 million in funding through a strategic investment round, aimed at expanding their product pipeline. This funding comes after a previous $40 million investment in early 2023.

Regulatory Landscape

Pear's products have gained regulatory approval, allowing the company to bill insurance providers directly. The regulatory landscape the company navigates includes:

• FDA clearance for digital therapeutics.
• Collaboration with the Centers for Medicare & Medicaid Services (CMS) for reimbursement policies.

Patient Engagement

Patient engagement is a critical component of Pear Therapeutics’ strategy. The company reports a 70% adherence rate among users of their digital therapeutics, significantly higher than traditional treatment adherence rates.

Market Capitalization

As of October 2023, Pear Therapeutics has a market capitalization of approximately $250 million. The stock price as of the last trading day stands at $2.50 per share, reflecting market confidence in digital therapeutics.

Competitive Landscape

Future Projections

Analysts project a 25% annual growth rate for Pear Therapeutics over the next five years. This growth is attributed to the increasing acceptance of digital therapeutics in healthcare settings and the expansion of their product offerings.

How Pear Therapeutics, Inc. (PEAR) Makes Money

Prescription Digital Therapeutics (PDTs)

Pear Therapeutics primarily generates revenue through its Prescription Digital Therapeutics (PDTs). These are clinically validated software programs designed to treat various health conditions, particularly in the field of substance use disorders and mental health. As of 2023, their flagship product, reSET-O, has been pivotal in generating revenue.

Revenue from Product Sales

In the fiscal year 2022, Pear Therapeutics reported revenue of approximately $15.7 million, largely attributed to the sale of its PDTs. The company has focused on expanding its product offerings and market reach. The following table summarizes revenue generated from key products:

Partnerships and Collaborations

Pear has engaged in strategic partnerships that bolster its financial standing. Collaborations with pharmaceutical companies and healthcare organizations provide a steady stream of revenue through licensing agreements and co-development projects. In 2022, Pear entered a partnership with a major pharmaceutical company, which contributed approximately $3 million in collaborative research funding.

Insurance Reimbursements

Pear Therapeutics has made significant strides in getting its PDTs covered by health insurance plans. As of 2023, it reported that over 90% of patients using reSET-O received some level of insurance reimbursement. This has directly influenced their revenue positively, making treatments more accessible and boosting sales.

Market Expansion Strategies

The company aims to expand into new therapeutic areas, including anxiety and depression, which are expected to drive future revenue growth. Pear Therapeutics anticipates a market expansion that could result in an additional $50 million in revenue by 2025, depending on market conditions and regulatory approvals.

Cost Structure and Profitability

As of Q1 2023, Pear Therapeutics reported total operating expenses of approximately $20 million. The breakdown of costs is as follows:

Future Projections

Pear Therapeutics projects significant growth in revenue over the next few years. The forecast for 2023 is approximately $35 million, based on anticipated product launches and increased payer coverage. The following projections highlight expected growth through 2025: