Pear Therapeutics, a company that creates digital therapeutics for mental health, has filed for bankruptcy. The company’s CEO, Corey McCann, has blamed insurers for not providing adequate coverage, leading to a lack of revenue and cash flow.
In a statement, McCann said that despite the company’s success in creating effective treatments for mental health conditions, insurers have not been willing to pay for them. “We have struggled to get adequate reimbursement for our products, which has led to shortfalls in revenue and cash flow,” he said. “Despite our best efforts, we have not been able to bridge this gap, which has forced us to make the difficult decision to file for bankruptcy.”
Pear Therapeutics’ Struggle
Pear Therapeutics was founded in 2013 and has created several digital therapeutics that have been approved by the FDA, including reSET and reSET-O, which are used to treat addiction to drugs and alcohol. The company has also developed Pear-004, a digital therapy for schizophrenia, and Pear-005, a treatment for multiple sclerosis.
McCann says that despite the bankruptcy filing, the company will continue to provide its products to patients. “Our goal has always been to help people with mental health conditions, and we will continue to do so,” he said. “Our products are effective, and we know that they can make a real difference in people’s lives. We remain committed to making our treatments available to those who need them.”
While Pear Therapeutics has struggled to get insurers to pay for its treatments, the company has received support from several healthcare organizations. In 2020, the company was awarded a $10 million grant from the National Institutes of Health to develop a digital treatment for opioid addiction.
Despite the support, Pear Therapeutics has been unable to overcome the financial challenges posed by insurers. The company’s bankruptcy filing marks a setback for digital therapeutics, which have been seen as a promising new way to treat mental health conditions. As the field continues to grow, it will be important for insurers to recognize the value of these treatments and provide adequate coverage to ensure that patients can access them.
Pear Therapeutics, a prominent producer of digital mental health treatments, has declared bankruptcy due to insufficient insurance coverage. CEO Corey McCann blames revenue shortages despite effective therapies. The company vows to persist in offering treatments, but financial hurdles persist, underscoring insurer resistance to innovation in mental health care.