Digital health company Pear Therapeutics filed for Chapter 11 bankruptcy and terminated 170 employees, or 92 percent of its workforce, according to an April 5 filing with the U.S. Securities and Exchange Commission.
The company will keep 15 employees as part of a 'transition' team as it looks to sell off its assets.
Pear Therapeutics developed digital prescription medicines. CEO Corey McCann was among the 170 employees laid off.
"We've shown that clinicians will readily prescribe prescription digital therapeutics. We've shown that patients will engage with the products. We've shown that our products can improve clinical outcomes. We've shown that our products can save payors money," Mr. McCann wrote in an April 8 LinkedIn post. "Most importantly, we've shown that our products can truly help patients and their clinicians. But that isn't enough. Payors have the ability to deny payment for therapies that are clinically necessary, effective, and cost-saving. In addition, market conditions over the last two years have challenged many growth-stage companies, including us."