Dive Brief:
- Akili Interactive began trading on the Nasdaq exchange on Monday after merging with a special purpose acquisition company. The deal netted Akili more than $163 million, which it plans to use to commercialize its video game-based treatment for pediatric ADHD, it said in a statement on Aug. 19.
- Akili’s stock opened at $36 on Monday, before falling below $20 in morning trading. The Boston-based company opened with a valuation of $448.56 million.
- The funds combined with Akili’s cash on hand are expected to give the company enough money to cover at least 24 months of operations. Other digital health companies, such as Pear Therapeutics, have trimmed staff as they look to extend their runway, facing tougher market conditions.
Dive Insight:
Akili merged with Social Capital Suvretta Holdings Corp. I, one of several special purpose acquisition companies created by Chamath Palihapitiya, a venture capitalist and former Facebook executive. Shareholders of the so-called blank-check company approved the deal in a meeting on Aug. 18.
Eddie Martucci, Akili’s founder and CEO, will continue to lead the company, while Palihapitiya will chair its board.
Akili currently has one product, a video game called EndeavorRx that is intended to improve attention function in children with ADHD. The company received de novo clearance from the Food and Drug Administration in 2020, and is planning a full launch in the U.S. in the fourth quarter of this year.
Akili plans to put some of the proceeds of the deal toward marketing efforts, as well as developing other digital therapeutics for autism spectrum disorder, multiple sclerosis and major depressive disorder.
The company’s revenue has declined in recent years as it has brought in less funds from licensing deals and has yet to complete the commercial launch of its first product. According to an July 14 amended registration statement, Akili reported $66,000 in revenue for the first quarter of 2022, down 44% from the year-earlier period. For the full year 2021, the company reported $538,000 in revenue, down from $3.94 million in 2020.
Akili also reported a net loss of $61.35 million in 2021, compared to a $25.65 million net loss in 2020.
