Akili Interactive (Nasdaq: AKLI), a digital therapy focused on cognitive decline, arrived on Nasdaq Monday morning through a special purpose acquisition company (SPAC) merger with Social Capital Suvretta Holdings Corp. I.
In doing so, Akili joins a growing list of digital behavioral health companies entering the public markets through SPAC mergers.
The Boston-based startup created a prescription video game, called EndeavorRx, aimed at improving attention function in children with ADHD. In 2021, the company obtained an FDA 510(k) clearance for the technology. has also started research on the use of video game therapy for adults with depression.
Its late-stage portfolio includes therapies aimed at treating patients with autism spectrum disorder (ASD), multiple sclerosis (MS), and major depressive disorder (MDD).
The deal will give Akili approximately $163 million in proceeds, which will go toward launching EndeavorRx and developing new products in its portfolio.
“With this milestone completed, Akili has several others ahead of it, including its upcoming commercial launch of EndeavorRx and a strong clinical pipeline of innovative digital therapeutic candidates that have the potential to treat a host of cognitive impairments,” said President and CEO. of Social Capital, Chamath. Palihapitiya said in a statement.
The company was founded in 2011. Before SPAC, Akili attracted the attention of investors. closed a $110 million Series D financing round in 2021.
Akili is led by CEO and co-founder Eddie Martucci, who will continue to lead the company in the future.
There were 23 digital health companies (not all focused on behavioral health) that went public through a merger with SPAC or an initial public offering in 2021, according to rock health.
Digital therapy startup Pear Therapeutics (Nasdaq: PEAR) and mental health company conversation space (Nasdaq: TALK) are two examples of recent SPACs in space. While the companies specialize in different areas of behavioral health, both face significant challenges in the public marketplace.
Talkspace’s initial share price was just under $10. However, the price has plummeted to just under $1.50. Also, pear therapeutics It debuted at about $10 a share, but has slumped to just under $2 a share.
Meanwhile, traditional behavioral health providers are doing slightly better in public markets. Acadia Health Care Company (Nasdaq: ACHC) went public in 2011 at $7.50 per share; it is now worth approximately $82.32 per share.
Lifestance Health Group (Nasdaq: LFST), a newcomer to the public market, posted significant losses in 2021, but in 2022 has several initiatives that signal a shift from growth to profitability.
