Akili Interactive (Nasdaq: AKLI), a digital therapeutic focused on cognitive impairment, hit 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 landed an FDA 510(k) clearance for the technology. It has also begun research on using video-game therapy for adults with depression.
Its late-stage pipeline includes therapies targeted to treat patients with autism spectrum disorder (ASD), multiple sclerosis (MS) and major depressive disorder (MDD).
The deal will give Akili roughly $163 million in proceeds, which will go towards launching EndeavorRx and developing new products in its pipeline.
“With this milestone completed, Akili has a number of others ahead, including its upcoming commercial launch of EndeavorRx and a strong clinical pipeline of breakthrough digital therapeutic candidates that have the potential to treat a host of cognitive impairments,” Social Capital Chairman and CEO Chamath Palihapitiya said in a statement.
The company was founded in 2011. Prior to the SPAC, Akili drew investor attention. It closed a $110 million Series D funding round in 2021.
Akili is led by CEO and co-founder Eddie Martucci, who will continue to helm the company moving forward.
There were 23 digital health companies (not all of which were behavioral health-focused) that went public via a SPAC merger or IPO in 2021, according to Rock Health.
Digital therapeutics startup Pear Therapeutics (Nasdaq: PEAR) and mental health company Talkspace (Nasdaq: TALK) are two examples of recent SPACs in the space. While the companies specialize in different areas of behavioral health, they both face major challenges on the public market.
Talkspace’s initial price per share was just under $10. However, the price has tumbled to just under $1.50. Additionally, Pear Therapeutics debuted at roughly $10 per share, but has plummeted to just under $2 per share.
Meanwhile, traditional behavioral health providers are faring somewhat better on the public markets. Acadia Healthcare Company (Nasdaq: ACHC) went public in 2011 at $7.50 per share; it is now worth roughly $82.32 per share.
Lifestance Health Group (Nasdaq: LFST), a newcomer to the public market, posted major losses in 2021, but in 2022 has several initiatives that signal a shift from growth to profitability.
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