Pear Therapeutics, a Boston-based maker of app-based programs that are prescribed to treat insomnia and substance use disorder, will cut 22% of its staff in a bid to reduce costs amid a “challenging macroeconomic environment.”
The layoffs, affecting about 59 employees, are intended to extend Pear’s “cash runway” and reduce its reliance on financing, the company said in an earnings announcement on Monday. It’s expected to save Pear about $10.7 million in 2023.
This is the second round of layoffs Pear has announced in recent months. In July, the company said it would cut about 25 employees, also in a move to buy time amid tougher market conditions.
The company also is in the middle of a transition as it looks to gain insurance coverage for its digital therapeutics and derive most of its revenue from prescription sales. In previous years, most of Pear’s revenue came from financing or licensing agreements.
“For now, we think access agreements and state Medicaid coverage wins will be most important for PEAR's near-term revenue,” BTIG analyst Marie Thibault wrote in a research note on Monday.
Pear reported revenue of $4.1 million on 11,400 prescriptions in the third quarter. The company is keeping its forecast of $14 million to $16 million in revenue for the full year on 35,000 to 45,000 prescriptions.