Better Therapeutics Terminates Employees, Seeks Strategic Alternatives

Better Therapeutics, a prescription digital therapeutics (PDT) company, has announced the termination of its employees and decision to explore strategic alternatives, including “assignment for the benefit of creditors and/or a wind-down of the company,” according to the press release.

The company also disclosed that its board of directors has decided to request Nasdaq delist its securities rather than having to present a plan to regain compliance with the stock market’s trading rules.

Going public through the special purpose acquisition (SPAC) boom in April 2021, Better Therapeutics has seen its fair share of ups and downs over the past few years. A major win for the PDT company included its 2023 FDA approval for the AspyreRx cognitive behavioral therapy PDT to treat type 2 diabetes. Additionally, it was only last month that its liver disease-treating PDT obtained FDA breakthrough device designation, and, earlier this year, Better Therapeutics partnered with Glooko’s diabetes management platform with the aim to get AspyreRx in more patient’s hands.

With the highs, however, Better Therapeutics has also seen setbacks. In March 2023, it was announced that the company would reduce its workforce by about 35% to extend its cash runway while it waited for AspyreRX’s FDA nod. Then, late last year, companywide pay cuts were also announced along side other measures to keep the company running as it sought CMS approval.

Better Therapeutics is now the second PDT company that went public through a SPAC deal to seek strategic options after difficulty obtaining CMS approval for digital cognitive behavioral programs. Pear therapeutics, which received de novo clearance for its PDT much like Better Therapeutics, filed for bankruptcy in April 2023, and later sold its assets for a combined $6 million.