a Akili Interactive, maker of ADHD-treating video games, announced it would go private through a merger with Virtual Therapeutics, a deal expected to net Akili shareholders $34 million, one month after the company said it was exploring strategic alternatives.
Akili made headlines in 2020 when it received U.S. Food and Drug Administration approval for its video game EndeavorRx for treating pediatric ADHD. The company went public in 2022, valuing it at approximately $1 billion. However, despite several strategic shifts, including a shift to direct-to-consumer sales, the company was unable to build a sustainable business model. Akili announced in April that it would wind down its existing commercial operations and focus on a licensing agreement with Japanese pharmaceutical company Shionogi & Co. while it explores the best path forward.
Akili is just one of many health tech companies struggling as investor interest in digital health exploded during the COVID-19 pandemic. Just last month, another digital therapeutics company, Better Therapeutics, sold assets for an undisclosed amount after failing to build a business around its Type 2 diabetes app, and diagnostics startup Cue Health shuttered after funding and interest in COVID-19 testing evaporated.
This article is exclusive to STAT+ subscribers
Subscribe to STAT+ to unlock this article and get additional analysis on technologies disrupting healthcare.
Already have an account? Log in
Already have an account? Log in
See all plans
Get unlimited access to award-winning journalism and exclusive events.
subscribe
